Another issue worth mentioning is that prior to the acquisition of 2007, the BB&T employees were already being offered training programs in convenience banking. The programs were basically revolving around the techniques which would be implemented by the organization. In this order of ideas, the most focus was placed on the De Le Rue coin counting machine and the Datacard 150i instant issue debit card machine. Employees were taught how to operate, maintain, balance and audit the according operations. Emphasis was also placed on the Relationship Bankers in reference to the new account bounding process including free gifts and the Refer-a-Friend process. The improvement plan sees the continued training programs which teach staff members how to most efficiently operate the new systems and how to explain their benefits and functionality to the customers. Also, BB&T should remain channelled on the emergent changes affecting the market and the industry and should develop ways of integrating the new demands and features.
Coin Deposit Center
The coin deposit center was developed keeping in mind the benefits it could generate upon the operations of the BB&T Corporations. The machine allows customers to deposit their coins without having to count or denominate. This means that the operations at the register and reduced and simplified, materializing in an increased operational efficiency and higher employee on-the-job satisfaction. The main specifications to be made relative to the potential improvements to the coin deposit center refer to the enlargement of the languages offered. In this order of ideas, convenience banking would be increased as more customers, coming from various cultural backgrounds, would have access to the machine. Also, the design could also be improved in order to make the interface more user-friendly.
Aside the improvements to be made directly to the product, convenience banking could also be supported through training programs which teach the employees how to best use the coin deposit center. Once this is achieved, the staff members will be able to transfer their knowledge to the customers. They will also be able to improve customer value and satisfaction (Talaris).
Instant Issue Debit Card Machine
The Datacard 150i is a revolutionary machine within the banking system which increases customer satisfaction as well as operational efficiency by reducing the time an order is served. Basically, the Datacard 150i issues credit and debit cards within minutes and "is ideal for banks, credit unions and retailers that want to offer new card products, increase revenue and strengthen customer loyalty." The key features of the product include "embossing, magnetic stripe encoding, color toping, indent printing (and) contact or contactless smart card personalization" (Card Wizzard).
Currently, BB&T only uses the Datacard 150i to issue debit cards. In this line of thoughts then, the suggestion is for them to also use it in the issuing of credit cards. This would lead to the better satisfaction of an increased palette of customers. Also, it is compulsory that the upgraded versions of the card issuing machine and its adherent software integrate the emergent changes in terms of client demands and market features.
When discussing the improvements that can be made relative to the Datacard 150i, one must consider the problem through financial lenses as well. In this order of ideas, the unit cost of a machine is of $10,943.00 and its maintenances and software costs rise to $27,060.12. The sums pose even more difficulties when the banking institution does not charge its customers for the rapid issuing of cards.
The company estimated an annual number of 5,684 reissued cards. Charging $2.00 per reissued card would total to revenues of $11,360.00; a $3.00 fee on a reissued card would total up to $17,052.00 and a fee of $5.00 per reissued card would generate annual revenues of $28,420.00. Adding such a cost would stand the risk of generating customer dissatisfactions. However, it would be useful and efficient for BB&T to charge a specified cost whenever the customer requires the issuing of an additional card before the expiry date of the first card. Such requests could be due to loss, theft or misplacement of the original card and the price would help the bank better amortise its expenditures.
The $3.00 fee seems the most appropriate one, due to several reasons. First of all, the customers would find it reasonable as it ensures them of a quick reissuing of their lost card. Then, they would be able to get a reissued card at no cost, provided they are willing to wait 7 to 10 business days. In this line of thoughts then, the $3.00 fee represents the charge of having the convenience of a rapidly issued card.
Fleet of Volkswagen Bugs
The fleet of Volkswagen bugs is formed from nine automobiles, previously owned by Coastal Federal, and rewrapped in the colours of BB&T (white and burgundy). They are driven by the AOO consultants and compliance officers in the three countries implementing banking convenience (Horry, Georgetown and Charlestown). The vehicles reveal inscriptions of the bank's efforts to increase convenience, such as longer working hours or coin counting. The vehicles present a dual-sided advantage: they advertise for the company, and, they inform the current and potential customers of the efforts BB&T is making in increasing banking convenience.
The running and maintenance costs (including gasoline, car mileage and insurance) are entirely covered by the corporation. An efficient means to reduce costs would be for the banking institution to only reimburse the AOO consultants and officers for the gasoline consumed. The costs of repairing the car should be covered by the driver and/or the insurance company. The table below reveals the savings which could be made if such an endeavour was launched (the tank capacity of the Volkswagen bug is of 14.5 gallon):
Gas Tank Size
Reimbursed cost by BB&T @.42
Gallons of gas used for miles traveled per month x gas price
Savings to BB&T
30 x1.60= $48.00
40 x 1.75=$70.00
50 x 2.00=$100.00
According to the above calculi, the savings registered in a situation in which the AOO consultants and officers drive an average of 800 miles per month, would total up to $28,728 per annum.
The contemporaneous business environment is market by numerous changes in terms of dynamics, competition, technological advancements and customer demands. The banking industry is no exception. A means of addressing these changes is the recent development of convenience banking. The concept refers mainly to implementing those strategies which make the banking process easier and more efficient to its end users, increasing as such the clients' levels of satisfaction.
A successful example of convenience banking is offered by Branch Banking and Trust Corporation. The company used several procedures before 2006, but they became more focused on them with the acquisition of the Coastal Federal Bank. It was generally unusual for BB&T to adopt the measures of its partners, but in this case, they continued to implement the convenience strategies of Federal. The formed company operates through 1,500 branches, but they only implement convenience banking in 30 subsidies, across three countries.
The endeavours of convenience banking refer to longer working hours, including Saturday, coin deposit machines, rapid card issuing or a Volkswagen fleet. Improvements could be made in each direction. In this case, the coin deposit center could be made more user-friendly; the bank could only reimburse the Volkswagen drivers for the gasoline consumed - this would generate savings. Finally, in terms of card issuing, BB&T should require a fee whenever an older card is being reissued due to loss, theft or misplacement on the part of the corporate client.
2009, BB&T Corporation, Hoovers, http://www.hoovers.com/bb&t/--ID__14758 -- /free-co-factsheet.xhtmllast accessed on February 9, 2009
2009, Website of the BB&T Corporation, http://www.bbt.com/last accessed on February 9, 2009
2007, InSite Communicating Within, BB&T Insite
Coastal Federal Bank Unveils the Carolina's Most Convenient Bank, PR Newswire
Datacard 150i, Card Wizzard
Pressed for time? Count every penny? Like free gifts? This bank's for you, Banking Insurance Investment
QC / QuickChange Self-Service Coin Deposit Center, Talaris