After transformation, banking outlets may have a better outward appearance, more service functions and higher service awareness in their staff.  Their queuing problem may have been alleviated to a certain extent, but the problem has not been completely solved.  Tianhe Sub-branch therefore tried to approach the problem by taking note of the four main characteristics of products and services of commercial banks.  It was thinking of ways to improve service efficiency through better “interaction” with customers in the process of providing products.

Inspiration from a Guru

Banking products and services share four main characteristics.  They are intangible in that, before services are provided, customers cannot feel them.  They are changeable in that service quality fluctuates because it is affected by factors such as the moods of service providers and recipients, the skills of service provision and the location where service is provided, etc.  They are quick disappearing in that once a customer’s need is met, a service will disappear.  They are inseparable in that they cannot be separated from the customers and is provided in the course of interacting with customers.  It is these four characteristics which make it the more difficult to provide good services or increase service quality.  But at the same time, they open up a wider choice of ideas in improving services or enhancing service quality.

This is exactly so in reality.  It is because banking products and services are so “inseparable” from our customers that it begs us to include the recipients of our services—our customers—so that they can be changed from “passive recipients” to “recipients who actively fit in with us", from being “nitpicking and complaining customers” to “customers who work with us in improving services”.  This is no easy job, but it has to be done.

In one of the masterpieces of Philip Kotler, the "Father of Modern Marketing, ”Tianhe Sub-branch has found an answer.  Kotler has pointed out that the process of service generation is characterised by the presence of customers.  It is such an interaction between service providers and customers which forms the unique characteristic of service provision—that both the providers and the customers can affect the outcomes of the service.  In other words, customers are also an important factor in providing good services and improving service quality.  Thus, the status of the interaction process (whether it is smooth going or being obstructed) or its duration will very much dependent on how customers understand the products and services provided by a bank and how well they have prepared themselves in providing the documents or carrying out the procedures necessary for the buying of the bank products.  This tells us that, to solve the queuing problem, we should not treat customers as outsiders.  Instead, they should be regarded as important participants.

Inspired by the guru and armed with specific instructions from upper-tier management, Tianhe Sub-branch then started to encourage customer participation by engaging them interactively and by fostering good consumption habits in them—important measures in improving service and raising service efficiency.

From “Individual Number Taking” to “Interactive Number Assigning”

When it comes to fostering good consumption habits in customers, it is easier said then done.  For example, for such a simple procedure as taking a queue number from the counter calling machine, most customers are not willing to follow the bank’s “instructions”.

In the past, once a customer entered a banking outlet, he or she will take turn to get a queue number by pressing an appropriate key on the monitor of the “counter calling machine”.  But some customers might take more than one number, while others might leave the outlet after getting a number to attend to other chores, resulting in a lot of “no-show numbers” or “wasted numbers”.  For each of such no-show or wasted numbers, the counter calling system would have to make two to three announcements.  But since no customer would be coming forth, the teller of the counter would have to wait in vain.  Preliminary calculations indicate that, each of the no-show or wasted numbers would waste at least one to two minutes, and that means one to two more minutes of waiting for customers whose queue numbers come behind.  Wasting one or two minutes by a single no-show or wasted number would not have drawn much attention, but the amount of time wasted would be considerable if there are many no-show or wasted numbers.

There are more disadvantages than benefits if customers are asked to take their own queue numbers: not only would there be a waste of counter resources, but there is also room for number touting by scalpers.  Moreover, there are customers who have taken their numbers but have no clue as to what documents or certificates they have to bring to have their business handled.  They would wait for their turn in the bank lobby and it is only when they turn up in front of a counter that they realise they are short of either this or that.  So they would not be able to carry out their business, wasted their own time and, what is more, made the tellers perform non-productive work.  After all the troubles they have taken, the tellers concerned would not be able to claim any credit and yet they have to tolerate contemptuous looks from the customers.  So internally and externally it is a no gain for them.

If we add up all the delays and non productive work caused by no-show or wasted numbers in one day, the total amount of time wasted would not be insignificant.  Properly utilised, the resources would be equivalent to half a counter additionally.  From on-site observations and statistics, everyone understands that asking customers to take their own queue numbers is no small matter and there is much room for improvement.  After studying the issue, Tianhe Sub-branch has decided to switch from "individual number taking” to “interactive number assigning”.

What then is meant by “interactive number assigning”?  First, when a customer comes into a banking outlet, the lobby manager will approach the customer and enquire about the purpose of his or her visit.  If the customer is coming in to make deposits, withdrawals or bill payments and if the sum involved is small, he or she will be shown to the self-service facilities.  For large size deposits or withdrawals, the customer will be asked to take a queue number by swiping his or her bankbook.  If a customer comes in to handle some complicated transactions, the lobby manager will, upon checking, take a categorised queue number on the customer’s behalf.  For a VIP customer, he will swipe a special card to get a priority number.  For an ordinary customer, the type of queue number taken will depend on the type of transaction to be handled (cash, non-cash, housing provident fund, loss reporting, etc.)  After receiving an assigned number, the customer will go to the relevant counter for business handling on hearing instructions from the counter calling machine.  “Interactive number assigning’ allows a good tying in of service categorisation and teller grading: whereas general tellers can process straight-forward transactions speedily, senior tellers can handle complicated ones with ease.  To sum it up in one word: Fast!

When "interactive number assigning’ was first launched, many customers could not get used to it.  They refused to cooperate because they thought that the lobby manager was intruding on their privacy by asking about their needs.  In face of frosty looks and accusations, the lobby manager simply kept her cool, explained herself smilingly and asked for understanding and cooperation from the customers.  But her patience was not in vain.  Gradually, customers began to approve and accept “interactive number assigning”.  From the time of its inception until now, the measure has been effective in eliminating at source all the no-show numbers, wasted numbers and number touting, in reducing non-productive work at the counters and in shortening customer queues.

From “In-process Form Filling” to “Advanced Form Filling”

Previously, many customers had to be turned away or engaged in unproductive work because they were not sure what forms they had to fill or what documents they had to furnish when they came up to a counter.  Sometimes, only when they came to a counter would they start filling out forms in a flurry on the bidding of the teller.  This not only caused delays in other customers, but would often result in mistakes and foul up the mood of everyone.

Tianhe Sub-branch deals the problem when a customer comes into its lobby and participates in “interactive number assigning”.  After learning the purpose of the customer’s visit, the lobby manager will assign him or her a categorised queue number if the business to be handled is complicated.  Then, while the customer is waiting, the lobby manager will provide guidance in filling relevant forms as required by the business in question.  The customer will fill out the forms by referring to the samples furnished by the lobby manager.  Completed forms will then be vetted by the lobby manager and amendments will be made if necessary.  This way, when the customer comes to the counter, not only will there be no delays caused by extemporary filling out of forms, but all documentation will be acceptable in the first go.

By referring to prepared samples in filling out forms, the accuracy of customer completed forms has greatly improved.  By switching customers’ “in-process form filling” to “advanced form filling”, the duration of the “interactive” process in which a teller handles a customer’s business at the counter is shortened.  Measurements taken at counters indicate that, in complicated transactions, by switching from “in-process form filling” to “advanced form filling”, the time saved would be two to three minutes per transaction.  If customers can follow the lobby manager’s instructions and prepare all necessary documents (such as photocopy of identification card, etc.) in advance, the time they have to spend at the counter will be very short.

At Tianhe Sub-branch, in addition to the lobby manager’s clear guidance, signage is put up at prominent places to indicate the locations of different functional zones, the process flow of different types of transactions and samples illustrating how different forms have to be completed.  All these are to help customers make all the necessary preparation in advance so that the time each of them spends at the counter is reduced.

From “Counter Service” To “Self Service”

Over the years, many customers have developed the habit that, regardless of their businesses on hand, they would only have rest of mind if the businesses are handled at the counters, and they would not trust or bother with e-banking and the self-service facilities introduced by the bank.  It is such an attitude which leads to an uneven utilisation of different types of service channels.  It results in the customers have to wait in a banking outlet for a long time and in bringing tellers enormous pressure.

In a bid to change such a consumption habit, Tianhe Sub-branch has its customer try-out zone relocated from the VIP zone to the bank lobby.  The lobby manager then would help more of the ordinary customers trying out online operations so that they can experience the speed and convenience of e-banking services.  Such on-site trials and recommendation by the lobby manager have succeeded in convincing some customers to accept and utilise e-banking and self-service facilities.  In addition, the partition between the self-service zone and the bank lobby has been removed to make it easier for the lobby manager to keep a watchful eye over both zones.  As soon as there is any “malfunctioning” when a customer is using the self-service facilities, the lobby manager will immediately go over and provide help.  With practice, customers will gradually find it easy to operate these facilities.  In Tianhe Sub-branch, each of the self service equipment is also assigned a number.  So, after the lobby manager has carried out “interactive number assigning” with a customer, she can, if it is appropriate, conveniently and quickly ask the customer to go to a specific self-service equipment to handle the intended business.

With the lobby manager providing instructions methodologically and with corresponding measures in place, the habit of using e-banking and self-service facilities is effectively fostered and counter workload has been substantially reduced.  In early 2006, transactions using self-service facilities were 18.36% of all transactions.  The figure jumped to 37.49% by the end of the year and, by June this year, the figure has already reached 61.87%.  At Tianhe Sub-branch, everyday there are almost 1,000 transactions using self-service facilities.  In particular, the automatic deposit machine handles as many as 120 transactions a day.

Although the Sub-branch handles an average of almost 1,500 transactions daily, there are not too many customers in its lobby.  This is so because many customers who come in to handle straight-forward transactions simply leave quietly after helping themselves.

After leaders from the provincial Banking Regulatory Commission and the provincial Association of Banking Industry have visited Tianhe Sub-branch, they all agreed that, if all banking outlets in Guangzhou could follow the example of Tianhe Sub-branch, banking service in Guangzhou would undoubtedly be the best in China.