BIZCHINA> Review & Analysis
|
BIZCHINA> Review & Analysis
|
|
How to win in retail banking in China
(China Daily)
Updated: 2006-11-24 17:22 Identifying those customers and appealing to them with quality service will become a critical part of the entry strategy for foreign banks, particularly since the biggest retention weapon of the "big four" is their extensive distribution through branch networks which overseas banks cannot easily duplicate. One way to counter is the approach taken by Hong Kong's Standard Chartered Bank, which is concentrating on the biggest cities on the Chinese mainland and is introducing services such as personal financial advisers, foreign-currency investment products, and a dedicated 24-hour customer hotline. In fact, many Chinese banks have taken a narrow view of the value of their customers. They have had little reason to see themselves as anything more than deposit takers. With the coming changes, they will need to think systematically about how to grow the customer relationship from a savings account holder, for instance, to a small mortgage customer or a credit card user. Already a few banks are starting to redesign some of their products to broaden business with current customers. Bank of Shanghai, a city institution in which HSBC owns an 8 per cent stake, talked to customers before becoming the first to offer credit cards denominated in a foreign currency, as well as home, car and personal loans. The expanded range of products has helped Bank of Shanghai to achieve the highest loyalty rating in the city. As China's banks make such important moves to win customers, they would be wise to consider a key finding in our survey. Nearly half of the customers we surveyed told us that three basic attributes mattered most the convenience and quality of the branch network, how long they must wait in lines, and the helpfulness of staff. For China's traditional banking culture, building a customer-based mindset is a major shift in focus. But as China's banks seek ways to hang onto restless depositors after December's changeover, paying attention to customers will be the best way to turn disaffected depositors into loyal promoters.
(For more biz stories, please visit Industries)
|
