First Direct banking was launched in 1989 as the telephone-only offshoot of HSBC. The bank
remains a direct channel only competitor but now also offers Internet and SMS based
services. Products offered by First Direct include an offset mortgage, a low rate credit
card, a high interest savings account and various investment products
While other banks make implicit statements about putting the customer first, First
Direct is very explicit in its desire to do this. As a result the bank states ‘the real
difference about First Direct is simple. Most banks are about money. First Direct is
about people’. First Direct also describes itself as ‘a bank designed around the
customer’.
First Direct validates its claims of the best customer service in a number of ways:
• It promises to contact customers when a new product is launched that would
save them money or earn them a higher rate of interest;
• It promises to never have obsolete accounts;
• It pays GBP25 (US$44) to individuals that open a First Direct current account • It offers customers a free information pack on ‘beating the system’, that is how
customers can manage their financial affairs more profitably;
• It promises that customers will always be able to speak to a ‘real’ advisor and that
they will not face automated telephone services;
According to First Direct:
• 85% of customers are 'extremely' or 'very' satisfied with the bank
• 82% of customers have recommended the bank to friends or colleagues
• 78% of customers believe service provided by the bank is better than that
provided by other banks
• 95% of customers were satisfied with the account opening process
First Direct banking is an interesting case study given that it owned by HSBC, a high street
bank. HSBC has sought to differentiate First Direct by making it explicitly customer
focused, by making it a consumer champion and by not establishing a high street; presence.
At a time when banks are so frequently perceived in a negative light because of their
high fees and charges or because of uncompetitive products or branch closures, First
Direct stands out as an excellent example of how to operate a bank with ‘a friendly
face’.
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