Despite concerns that cost-cutting and reduced staffing might alienate customers, a nationwide survey says that bank service has significantly improved.
The survey of 135 banks by Barry Leeds & Associates, the nationally known market research firm, measured everything from how often bank employees greeted customers to how well they cross-sell products.
Results were based on 25,000 evaluations of "mystery shopper" visits made mostly this year to banks and thrifts nationally.
Leeds & Associates found that bank employees greeted customers 95% of the time, up three percentage points from the previous survey, in 1992.
And 52% shook hands with the customer, up from 38% in the earlier survey.
The improvement came as banks and thrifts were investing heavily in technology and examining staff reductions as a way to improve their bottom lines.
While some bankers are worried that such cuts could drive away customers, the survey appears to show it's possible to do more with less.
"It shows that it's possible if you are one of the banks which place an emphasis on service quality," said Paul Lubin, executive vice president at New York City-based Leeds.
Successful banks give their employees regular training, measure how the bank is doing, and compensate workers accordingly, he said. The survey found that, despite staff reductions, platform waiting times remained fairly level.
It also found that 81% of bank customers did not wait at all or for less than five minutes to meet with a customer service representative. And 89% waited that long for a teller, down slightly from 92% in the 1992 survey.
Most banks still needed improvement in some areas. The survey found that 75% of employees asked a customer for their business.
While that was up from two years earlier, it was significantly below the 94% rate registered by the 25 best service banks.
Also, attempts to cross-sell products and services occurred 47% of the time at all banks, compared to 95% of the time at the top performing banks.
Leeds & Associates said the difference may be attributable to lower interest rates' making certificates of deposit less appealing and to the fact that many banks are still grappling with how to promote noninsured investment products.
"How successful a bank is has a lot to do with corporate culture," said Mr. Lubin. "The top performers really place an emphasis on it every day. It's not rocket science, but it is good business policy."
