Extensive work was undertaken to
understand how clients and staff truly
feel about service at Nedbank.
Nedbank Group continues to focus on improving the overall client experience. Nedbank Retail is committed to improving its service offering continuously and ultimately delivering the best client experience in the market. To achieve this, the World Class Service initiative was launched in 2006.
WORLD CLASS SERVICE INITIATIVE
The process started with a comprehensive diagnostic investigation across Nedbank Retail to understand how clients and staff truly feel about service at Nedbank. Of importance are the following:- During the first half of 2006 approximately 20 000 clients were interviewed, highlighting both service problems as well as outstanding service experiences.
- As part of Operation Bear Hug II, senior managers spent a day in different branches across the country observing activities and talking to clients and staff.
- Approximately 200 staffmembers across Nedbank Group participated in client service focus groups around the country.
- International Client Service week, which was celebrated in the first week of October, further entrenched the importance of client service. Nedbank Retail celebrated the event and coordinated a number of service initiatives over the week – all with the aim of inspiring staff to go the extra mile for clients.
The diagnostic allowed Nedbank Retail to identify the top 12 service issues and opportunities, examples of which included pricing and fee charges, application processing, waiting times in branches, card delivery and the footprint of ATMs and SSTs around the country. A cross-functional retail team was then constituted under the World Class Service initiative to address these issues.
During 2006 Nedbank Retail also embarked on a comprehensive diagnostic to assess existing client management practices and benchmark these against companies and best practices globally. Retail has chosen CMAT™ as the approach for the assessment. CMAT™ is a client management framework and assessment tool that has been adopted by hundreds of organisations globally. The results of the assessment will provide guidance to enable Nedbank Retail to set the strategic agenda for achieving its objective of delivering World Class Service.
NEDBANK CONTACT CENTRE
A three-year client-centric strategy for the contact centre channel was defined at the beginning of 2006, together with a roadmap and key milestones. A key deliverable for 2006 was to integrate the various contact centres in Nedbank Retail into one Nedbank Contact Centre (NCC). This enabled the optimisation of scarce specialist support functions and created the foundation for a client-centric approach to sales and service.People processes were enhanced and every teamleader in the NCC attended performance management, coaching and motivation skills workshops. An incentive scheme to motivate staff to perform beyond expectations was designed and will be piloted in the first quarter of 2007.
SERVICE RECOVERY
The number of complaints logged in 2006 increased considerably (62%), when compared with the complaints logged in 2005.The increase can be attributed largely to the fact that Nedbank constantly invites clients to contact the bank when the service they experience is below their expectation. Nedbank distributed over a million complaint resolution leaflets, setting out the process to follow when a client experiences any form of service failure.The increase in the number of complaints logged provides management with vital information and allows for detailed root-cause analysis of service and/or system failures. The Client Complaint Helpline (CCH) team is staffed with experienced individuals who are all specialists in their respective fields.This ensures that all complaints are dealt with within the timeframes as specified in the Code of Banking Practice.
Where clients are not entirely satisfied that a complaint has been resolved, the client can log the issue with the Ombudsman for Banking Services (OBS). Nedbank actively manages all OBS cases and the trend over the past three years has been encouraging, in that more cases have been assessed in favour of the bank rather than the complainant.
Overall outcome of cases assessed by the OBS: 2004 — 2006
| In favour of the bank | In favour of the complainant | |||
| 2004 | 37% | 63% | ||
| 2005 | 48% | 52% | ||
| 2006 | 61% | 39% |
Nedbank OBS statistics
| 2006 | 2005 | 2004 | |||
| Cases opened (average per month) | 64 | 82 | 47 | ||
| Cases closed (average per month) | 61 | 81 | 45 | ||
| Average turnaround time for cases (days) | 60 | 61 | 68 | ||
| Amount claimed (Rm) | 23,8 | 23,1 | 19 | ||
| Settled (Rm) | 2,2 | 3,7 | 4,5 |
Nedbank was awarded both the OBS Code of Banking Practice Marketing Commitment Award for 2005 (for the third consecutive year) and the OBS Marketing Commitment Award for 2005 (previously held by Nedbank in 2003).
CLIENT SERVICE AND SATISFACTION MEASUREMENT
Nedbank Retail expanded the scope of its independent client satisfaction surveys significantly in 2006. In excess of 48 000 clients took part in these surveys by rating their experience with Nedbank.The survey results are used to identify service failures as well as areas of client satisfaction.Service score
The key focus for 2007 is to improve the overall client experience at Nedbank.This will be achieved by:- focusing on the top 12 service issues and opportunities;
- prioritising and implementing the recommendations of the CMAT™ assessment;
- implementing the client-centric contact centre strategy;
- continued proactive management of the complaints process; and
- included in staff and management scorecards.
RESPONSIBLE LENDING
The National Credit Act (NCA) was promulgated on 15 March 2006 and comes into effect on 1 June 2007.Of primary importance is the fact that all banks will have to register as credit providers and may engage only in lending and associated practices according to the governance embodied in the NCA.
Nedbank Group is engaged in various programmes to ensure compliance with all aspects of the NCA as required. Awareness training commenced in the fourth quarter of 2006, with further detailed training on policy, process and system changes commencing in the first quarter of 2007. As the group does not regard itself as a reckless lender, the training of staffmembers is aimed at creating awareness among staff, thereby fulfilling one of the objectives of the NCA, namely educating consumers and curbing overindebtedness.
Nedbank,in conjunction with the Banking Association,has signed a code of conduct governing lending and the extension of credit. The code voluntarily moves the banks beyond the requirements of the National Credit Act and limits the hours that banks may call clients with offers of credit, restricts banks to only selling credit to existing clients once the bank is satisfied with their credit standing, and requires banks to explain products and regulatory requirements in detail.New clients may only be contacted once their ability to repay the proposed facility has been assessed, and there may be no overselling.
DATA PROTECTION AND PRIVACY
Nedbank Group subscribes to the Code of Banking Practice of The Banking Association South Africa, which requires that all personal client information be treated as private and confidential. Nedbank Group is further committed to complying with the Electronic Communications and Transactions Act regarding client privacy as well as the Financial Intelligence Centre Act (FICA) and Financial Advisory and Intermediary Services Act (FAIS). Formal policies and processes are in place in each division to manage client privacy and confidentiality.The Group Privacy Policy states that, in the course of business, it is necessary for Nedbank Group to record, store, process, transmit and otherwise handle private information about individuals. Nedbank Group takes its responsibilities in terms of these activities seriously and seeks to provide fair, secure and legal systems for the appropriate handling of this private information.
RESPONSIBLE PRODUCT/INFORMATION LABELLING
Although detailed product brochures are available, relationship managers are also responsible for explaining the characteristics, benefits and implications of products to their clients in accordance with FAIS legislation. Product policies and procedures and product review committees are in place in our private client business.
Nedbank subscribes to the Code of Banking
Practice of The Banking Association
South Africa, which requires that all personal
client information be treated as private
and confidential.
