Personalized Service: A Rural Banks’ Competitive Advantage
Published by Larry on 2009/8/20 (319 reads)
by FREN MADERAZO
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco, Jr. once said that, “The real value added of rural banks does not lie solely on their broad geographical presence but just as importantly on their deep understanding of the character, peculiarities and needs of the rural customers.”
The organization of rural banks in the country calls this ‘personalized banking experience’. It is the kind of dealing that clients of rural banks are used to having every time they transact in their bank. This is the brand of service most, if not all, rural banks are known for.
Rural Bankers Association of the Philippines (RBAP) Spokesperson Tomas Gomez IV said, “Our being one with the communities we serve enable us to personalize our clients’ banking experience. Just like when buying in their favorite stores, our clients become our suki or loyal patron. We know their name, to which family they belong, to what schools they graduated from. We can talk to them about developments in their retail stores or whether the last farming season has been very profitable.”
Rural banks cover around 80% of the total municipalities in the Philippines with over 600 banks and 2,000 plus branches nationwide. Most of which are members of RBAP.
Gomez explained that, more often than not, the owners and the employees of rural banks are from the town, and, thus, know most if not all the banks’ clients on a personal basis. Its profitability and growth are largely, if not wholly dependent, on the town’s progress, or more specifically, the town folk’s own financial circumstances.
Indeed, personalized service has been one important differentiation of rural banks against the larger banks, many of which are becoming more impersonal as mergers consolidate the industry.
In a rural bank, reputation and trust dictate how much loan is granted, and what kind of banking privileges are extended to which clients.
“Rural banks take care of the communities where they do business in. Their main advantage to the bigger banks is that our being a part of the community enables us to feel the pulse of the people – know exactly what they need and deliver products and services tailor fitted to meet such needs,” added Gomez.** RBAP.
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco, Jr. once said that, “The real value added of rural banks does not lie solely on their broad geographical presence but just as importantly on their deep understanding of the character, peculiarities and needs of the rural customers.”
The organization of rural banks in the country calls this ‘personalized banking experience’. It is the kind of dealing that clients of rural banks are used to having every time they transact in their bank. This is the brand of service most, if not all, rural banks are known for.
Rural Bankers Association of the Philippines (RBAP) Spokesperson Tomas Gomez IV said, “Our being one with the communities we serve enable us to personalize our clients’ banking experience. Just like when buying in their favorite stores, our clients become our suki or loyal patron. We know their name, to which family they belong, to what schools they graduated from. We can talk to them about developments in their retail stores or whether the last farming season has been very profitable.”
Rural banks cover around 80% of the total municipalities in the Philippines with over 600 banks and 2,000 plus branches nationwide. Most of which are members of RBAP.
Gomez explained that, more often than not, the owners and the employees of rural banks are from the town, and, thus, know most if not all the banks’ clients on a personal basis. Its profitability and growth are largely, if not wholly dependent, on the town’s progress, or more specifically, the town folk’s own financial circumstances.
Indeed, personalized service has been one important differentiation of rural banks against the larger banks, many of which are becoming more impersonal as mergers consolidate the industry.
In a rural bank, reputation and trust dictate how much loan is granted, and what kind of banking privileges are extended to which clients.
“Rural banks take care of the communities where they do business in. Their main advantage to the bigger banks is that our being a part of the community enables us to feel the pulse of the people – know exactly what they need and deliver products and services tailor fitted to meet such needs,” added Gomez.** RBAP.
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