5. Meeting Customers' Needs Flashcards
What are four types of personal accounts?
- Sole
- Joint
- Account for minors
- Trustee (including business accounts)
What is a sole personal account?
One account holder
What is a joint personal account?
Two or more account holders
What is an account for minors
For under 18s
What is a trustee?
People who are holding money in trust for someone else (including for a business)
What are the five life cycle stages for individuals?
- Youth
- Independent
- Family
- Empty nester
- Retirement
What are the characteristics of the youth life cycle stage?
- Key target market for banks due to the fact that generally once an individual commences a relationship they stay for a long time
- Younger generations are becoming less loyal and expect more from the products and services offered to them
- This market is more tech-savvy and embrace change and values convenience
What are the characteristics of the independent life cycle stage?
- Younger people who are likely to be earning an income, but have no dependents
- They represent the transition between youth and family and are likely to have some short-term savings goals
- They may have personal loans and credit card debt and are likely to seek innovative payment and product solutions
What are the characteristics of the family life cycle stage?
- Generally have limited additional income to set aside in savings account
- If they do save, it will probably be for short-term expenses like holidays
- Some may have a longer-term savings goal to fund their childrens’ education
- Many will have high levels of home loan or other debt such as investment loans
What are the characteristics of the empty nester life cycle stage?
- This is where an individual may still be earning, but their children have left home
- They tend to have a larger amount of disposable income and are likely to have the greatest opportunity to focus on savings and investments
- Some of their additional disposable income may go on holidays and entertainment or preparing for retirement
- They often have minimal or no outstanding debt
What are the characteristics of the retirement life cycle stage?
This is the stage where savings are generally used as a source of income. This group tends to focus on gaining sound investment returns over the duration of their retirement.
What factors influence good service?
How we perceive service could be influenced by a variety of factors, for example, our previous experiences, our expectations, our thoughts - even our mood, that is, how we’re feeling at the time. Service is therefore subjective. As such, providing great service to all customers at times is a challenge for any service provider.
What year was the Privacy Act enacted?
1988
What are the implications of the Privacy Act 1998 for bankers?
It is vitally important that customers’ affairs are not discussed outside the office, or with anyone outside the organisation. This is part of a banker’s duty of confidentiality.
What are some examples of customers experiencing vulnerability?
- A physical disability
- Severe or long-term illness
- Mental health problems
- Low income and/or high levels of debt
- Caring responsibilities
- Advanced age, for example, over 80
- Being young with less experience
- A change in circumstances (e.g., job loss, bereavement, divorce)
- Language barriers
- Non-standard requirements or credit history
- Low levels of literacy, numeracy, and financially capability or formally diagnosed learning difficulties
What are four types of issues customers experiencing vulnerability may face?
- Temporary issues
- Sporadic issues
- Permanent issues
- Compound issues
What are temporary issues? Provide examples.
Such as unemployment, unexpected and significant expense, short-term illness or bereavement where the issues are not permanent but will cause short-term challenges.
What are sporadic issues? Provide examples.
Part of a recurring situation, but not constant, such as recurring but irregular physical conditions, depression, or providing care to a dependent.
What are permanent issues? Provide examples.
The issue is permanent and will not change, such as a permanent medical condition like impaired mobility, blindness or dementia.
What are compound issues for customers?
A customer that is already in a permanent vulnerable position could find their position further complicated by a short- or medium-term issue that would represent a much larger risk.