What Is Customer Service in Banking?

ByLisa McQuerreyUpdated June 30, 2018

Customer service means different things in different industries, but it always boils down to the same basic elements – providing superior levels of service to patrons, constituents and clients. In the banking industry, where technology continues to evolve the way we handle personal and business finances, quality customer care includes keeping pace with both live and digital options for handling everything from simple to complex transactions.

Industry Knowledge

Not everyone has an in-depth understanding of banking products and services, so a detailed, current knowledge of the industry is vital to providing high-quality customer service. This includes familiarizing yourself with all of your institution's offerings, including:

Checking and savings options.
Certificates of deposit.
College savings plans.
Individual retirement accounts
Tax and estate planning.
Business, personal, home and auto loans.
Lines of credit and other credit products.
Safe deposit boxes.
Financial planning.

Not only should you be aware of what products your bank offers, but you should be well-versed and able to talk intelligently with customers about the benefits and features of all products. Good customer service also means being able to evaluate specific and highly individualized customer needs and make informed recommendations that suit those needs.

Clear Communication Skills

It is vital to quality customer service in the banking industry that you are able to deliver often complex or confusing financial information to customers in terms they can understand. Avoid industry lingo, and instead, provide explanations in layman’s terms. Make sure patrons are following what you say, pausing to ask questions to ensure they’re understanding the information you’re providing. Some areas of banking that can be confusing include:

Calculating interest rates.
Understanding various forms of overdraft protection.
Determining which loan products are best.
Understanding credit scores.
Protecting against or recovering from identity theft.
Utilizing online and remote banking options.

Personal Skills

Money is a sensitive topic for many people, and having exceptional people skills can help you be a valuable customer service-focused employee. You may find yourself in situations where you have to explain why a loan application will be denied, why a mortgage can’t be processed or why overdraft fees are eating away someone’s nest egg. Being clear and concise and offering explanations and options, all while maintaining a degree of empathy, can make you a customer-service asset.

Tech-Literacy

With banking options continually being tweaked by changes in technology, a good banking-customer-service representative will be able to help customers understand how to use what can be difficult-to-understand tools. Here are some ways to be of service:

Examples:

Rather than tell a customer they can use the ATM for deposits and withdrawals, demonstrate how the machine works, how to establish and enter a personal identification number and note the costs associated with withdrawing funds from a non-institution ATM location.

Instead of telling people to download the mobile app so they don’t have to come into the branch, offer to walk them through the steps on their personal device so they understand what to do at each point of the transaction.

Don’t simply hand a patron a brochure that discusses loan products. Instead, describe the options that are tailored to meet the customer's specific needs.

In-Person Customer Service Skills

While many people choose to use ATMs, direct deposit and mobile apps to handle their banking transactions, there are still people who prefer or feel safer, with in-person transactions. Embrace these individuals with a positive attitude, a smile, a greeting and personalized service, especially if you have regular customers who come to your branch on a frequent basis. You’re likely to gain a customer for life.

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