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- Keshav Ram Singhal
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Friday, November 29, 2024

Towards Improving Banking Services Quality - 4 - Annexure - The Problems in Banking - Real Stories of Customer Frustrations: Lessons for Lean Banking

Towards Improving Banking Services Quality

4.  

Annexure – 

The Problems in Banking -

Real Stories of Customer Frustrations: Lessons for Lean Banking


 








This annexure highlights real-life instances of customer dissatisfaction to identify systemic inefficiencies in banking services. Each scenario is analysed to derive insights and propose actionable improvements using Lean principles.

 

Case Study 1: Login and Transaction Password Mismatch

 

Scenario:

A customer encountered repeated issues with net banking due to confusion between login and transaction passwords. Despite entering the correct credentials, the app rejected the transaction password.

 

Analysis:

 

·       Poor user interface (UI) design failed to clarify password types.

 

·       Ambiguous error messages compounded the confusion.

 

·       App design lacked user-focused testing.

 

Conclusion:

Banks must design user-centric interfaces that provide clear instructions and error prompts. Lean principles advocate for continuous app testing to simplify user interactions and enhance the digital banking experience.

 

Case Study 2: Disputed Credit Card Statement

 

Scenario:

A retired banker discovered a wrong debit of ₹4,846 in their credit card statement. Despite repeated follow-ups with the bank, the issue remained unresolved, and the customer received an unsatisfactory closure message.

 

Analysis:

 

·       Ineffective grievance redressal processes.

 

·       Fragmented communication between departments.

 

·       Neglect of customer service, even for loyal, long-term clients.

 

Conclusion:

A streamlined grievance system with clear escalation paths is crucial. Lean banking principles emphasize faster resolution times and addressing root causes of errors, fostering trust and transparency.

 

Case Study 3: ATM Card Charges on Pension Account

 

Scenario:

A retired customer noticed an unexpected ₹295 debit from their pension account for ATM card usage. The bank provided no prior notice or justification for the fee.

 

Analysis:

 

·       Lack of transparency regarding charges.

 

·       Failure to provide fee waivers for specific customer categories, such as pensioners.

 

·       Weak customer engagement practices.

 

Conclusion:

Proactive communication about charges and their rationale is essential. Lean approaches, such as automated notifications and personalized outreach, can enhance customer satisfaction and reduce misunderstandings.

 

Case Study 4: Debit Card Renewal Intimation

 

Scenario:

A customer realized their debit card was about to expire and had not received any renewal notification, risking service disruption.

 

Analysis:

 

·       Lack of automated alerts for expiring services.

 

·       Potential service interruption caused by manual dependency.

 

Conclusion:

Automating renewal notifications ensures uninterrupted service and improves customer experience. Lean tools can eliminate manual errors, enhancing operational efficiency.

 

Case Study 5: App Malfunction During Emergency

 

Scenario:

A retired banker faced app malfunctions while trying to transfer funds urgently during a family emergency, experiencing repeated "technical error" messages.

 

Analysis:

 

·       Poor system reliability and testing.

 

·       Inadequate real-time technical support.

 

·       Significant emotional and practical impact on customers during emergencies.

 

Conclusion:

Banks need to ensure robust testing, real-time monitoring, and efficient support systems to avoid critical failures. Lean methodologies, such as Value Stream Mapping, can identify inefficiencies and prevent service outages.

 

Final Insights

 

The recurring challenges highlighted in these case studies underscore the systemic inefficiencies in current banking processes. Adopting Lean banking principles — including process optimization, customer-focused design, and proactive communication — can significantly improve service quality and customer satisfaction.

 

By prioritizing value creation and minimizing waste, banks can build a more reliable, transparent, and efficient system for their customers.   

 

I welcome your comments, questions and suggestions.


Warm regards,

Keshav Ram Singhal 

 

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