Improving the effectiveness of banks’ service guarantees: EMPLOYEE STUDY

Improving the effectiveness of banks’ service guarantees: EMPLOYEE STUDY

To understand the employee point of view better, focus group research was conducted after the completion of the customer study. To ensure a good representation of all branch employees, invitations were sent to all branches and branch employees were asked to volunteer for a discussion about branch operations. From the list of volunteers, the final group consisted of 16 full-time employees. They represented all branches and included both junior and senior employees. The focus group research was led by an independent moderator. Given the nature of the exchange, the authors believe that employees were open and sincere about their answers. The general finding from the research was that the employees were knowledgeable about the structure of the guarantee programme, but were not always completely supportive of this initiative. This lack of support was translated into actions that created an atmosphere that was not always conducive to exercising the guarantee. In other words, the feelings and behaviour reported by customers were confirmed in the employee focus group research. The following section discusses the main findings.

Awareness and general knowledge

The findings indicate that all participants were aware of the wait-time guarantee programme and had a general understanding of its basic premise. Specifically, they knew that customers ought to be compensated $Y if they waited more than X minutes. Several participants indicated that most full-time employees understood the programme, but had doubts about the comprehension by part-time employees. Part-time employees were mainly used during peak hours to help handle the increased load and as would be expected, many of the long delays occurred during peak hours. This implies that many of the customers who experienced a delay interacted with part- time tellers who were less knowledgeable about the guarantee.

 

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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