Tuesday, July 1, 1997
Cost Savings Through
Mergers
by Jim Lemke
([email protected])
The other day I received an ATM card in the mail. A letter with the card said that my old ATM card would no longer work and I should use this one instead. The mailing was from a bank that I had never used before, in fact, one I had never even heard of before. Now I have my name as the primary user on four different checking accounts at four different banks. (I know that is too many but each of them exists for a reason.) Maybe one of the banks I use merged with another bank. I couldn't figure it out.
Time to call the phone number listed on the letter if I had any questions. "You have reached First Third National West Transunion Bankcorp, Jr's computerized directory. For account information press 1. To receive a loan application press ..." Five minutes of button pressing leads me to: "Press 0 to speak to an operator."
< 0 > <elevator music>
"Please wait one moment while you are connected to the next available operator. Your call is important to us so please hang on."
<more elevator music>
"Please wait one moment while you are connected to the next available operator. Your call is important to us so please hang on."
Five minutes later:
"Hello, First Third National West Transunion Bankcorp, Jr, My name is Judy; how may I help you?"
"Uh Hi Judy, I received an ATM card in the mail from you and it said my old card would no longer work. I don't think I have ever used your bank and was wondering why you send me a card. You probably merged with one of the banks I use and I was trying to figure out which one."
"What is the number listed on the card sir?"
"8675-309-11-84"
"Yes sir, I have that account listed as coming from First Midwest Regional of Kalamazoo, New York. We merged with them last month and we are issuing new ATM cards."
"Umm I never had an account at First Midwest Regional of Kalamazoo, New York. I don't even know where that is."
"Hold on sir, I will transfer you to their customer service line"
<ring, ring>
"Hello, First Midwest Regional of Kalamazoo, New York. This is Amy; how can I help you?"
"Hi Amy, I received an ATM card from First Third National West Transunion Bankcorp, Jr. but I never had an account with them. Judy said that my account came from the merger with your bank. The problem is I never had an account with you either. I am just trying to figure out where this card came from."
"What is your name sir?"
"James Lemke"
"And your address?"
"1234 Main, Anyplace USA, 90214"
"I have that account listed as being with Mom and Pop Local Bankcorp."
"Yeah, that is where I have an account."
"We merged with them 3 months ago. The card you received will replace your old card. Anything else I can help you with?"
"Ummm Yeah They sent me a new PIN number with the card and I was wondering if I can change it back to my old one which is easier to remember."
"Hold on sir, I am transferring you back to First Third National West Transunion Bankcorp, Jr. They handle the new cards."
<ring> <elevator music>
"Please wait one moment while you are connected to the next available operator. Your call is important to us so please hang on."
Five minutes later:
"Hello, First Third National West Transunion Bankcorp, Jr. This is Tracy; how may I help you?"
"I was sent a new ATM card by your bank along with a new PIN number. I was wondering if I can change my PIN back to my old number."
"No. I am sorry, sir; the computer generates a random number when it sends out the card. We can't change it."
"At my old bank they had a machine where you could swipe the card through and type in a new PIN."
"Sorry sir, all ATM accounts are handled from the central office now. There is no way to change your number."
"Could you transfer me to the customer service line for Mom and Pop Local Bankcorp?"
"They no longer have a service line, sir. We handle all of their calls."
"Ok ... uh ... thanks."
"Thank you for choosing First Third National West Transunion Bankcorp, Jr for your banking needs. Have a nice day."
"I didn't choose First Third National West Transunion Bankcorp, Jr."
"I'm sorry sir, What did you say?"
"Never mind."
<click>
I went by the bank the other day and everything is closed down except for the drive-up windows and a single inside teller with drastically cut walk-up hours. I guess when a CEO promises a 30% cost savings by merging operations, what he really means is a 30% cut in customer service. By merging two customer service desks into one a company can save a lot of money by having the same number of operators handle twice the number of calls. Productivity is increased by centralizing operations and forcing customers to use remote branches. Money is saved and everybody wins, except those who like a friendly smile and hate talking to a machine, and of course those who like to pick their own PIN numbers.
Jim Lemke