Chapter 2 - A Client Centred Approach Flashcards
What are the attributes of excellent customer service?
Provision of products and services that meet customer needs at a reasonable price.
Giving the customer what they want, when they want it.
Consistent and ongoing follow-up in an accurate, reliable and courteous manner.
Pleasent, helpful, attentive and efficient staff.
Well laid out premises.
What are the attributes of poor customer service?
Miserable looking staff.
Untidy/dirty premises.
Lack of stock.
Rude staff.
Long queues.
Staff chatting to each other whilst serving.
Product-pushing staff.
What are the attributes of good queue management?
Extra staff on hand to support in busy periods.
Staff to walk the queue.
Educate the customer about alternative delivery channels.
Queue management display.
Monitor customer waiting times.
What measures should you take with a customer to ensure privacy standards are adhered to?
Verify identity.
Ensure information cannot be overheard.
Consider using a meeting room.
Do not leave confidential information in the public domain.
Dispose of customer information securely.
Observe the Data Protection Act.
What are the main banking delivery channels?
Branch
Telephone Banking
Internet Banking
Smart-phone apps
ATMs
Define the banker/customer relationship.
Based on common law.
Imposes legally binding rights and obligations on both parties.
Duties on one party confer rights on another.
Non-fulfilment of duties may give cause for a civil action.
The Joachimson VS Swiss Bank Corporation (1921) was the key case which set out banker/customer rights and duties.
The Joachimson VS Swiss Bank Corporation (1921) established the banker-customer relationship. What did the case identify as the key attributes of the relationship?
A bank is a financial institution which takes in deposits and lends them.
A customer is someone who has opened an account with the bank.
Relationships governed by a contract.
Debtor-creditor relationship:
Customer deposits = Creditor
Customer borrows = Debtor
Deposits are liabilities and loans are assets on the bank’s balance sheet.
What are the rights of the banker?
Charge reasonable fees and commissions.
Charge interest on loans.
Set-off (credit and debit balances)
Return cheques unpaid
What are the duties of the banker?
Receive money and collect cheques.
Pay cheques.
Not to wrongfully dishonour cheques.
Inform customers of forgery.
Maintain secrecy.
Provide banker’s opinions (expertise).
What are the duties of a customer?
Ensure sufficient funds (or arrangements) to meet debits.
Inform the bank of forgeries.
Exercise reasonable care in drawing cheques.
Pay interest and charges.
What is lien?
Where the bank has a right to retain property until debt is repaid.
Special lien only apply to secure the debt arising from a particular transaction, rather than a series of transactions. The lien secures the property of the creditor for the sum due to be paid under the transaction.
General liens on the other hand secure property for all of the sums owed by the creditor. General liens may be important in insolvency situations, as they take priority over the rights of other creditors who the debtor is owed money.
Items lodged specifically for safe custody only are not subject to lien.
Can’t sell; only retain.
What do current accounts offer?
Instant access. Short-term liquidity via:
Cheque book
Standing order, direct debits, faster payments
ATMs
Money transfer including via internet and telephone banking
Typically low interest earned.
Overdraft facilities available.
What do savings accounts offer?
Instant access to term and fixed deposit.
Generally higher rate of interest than current account. (Generally the greater the restriction on access, the higher the interest earned.)
Typically, no overdraft facilities or added service.
What is a repayment mortgage?
Repaid over a specific period of time.
Repayments of capital and interest at a constant rate.
In early years, most of the repayment amount covers interest charged.
In later years, capital owed starts to erode more quickly.
What is an endowment mortgage?
Amount stays the same.
Interest paid to bank and a separate payment is made into an endowment policy.
Policy should grow each year. Maturing policy repays capital and maybe tax free surplus lump sum.
