The National Australia Bank is one of the largest banks in Australia in terms of customer base and market capitalization and the sub-continent’s largest business bank. With operations spanning across ten countries, the bank boasts of close to 8.5 million customers both at consumer and business banking levels as well as more than 2.3 million wealth management customers. Due to its exceptional professionalism and expertise, the bank attained international recognition including an AA- rating by Standard and Poor. The bank has featured prominently among the most ethical companies globally. It has always endeavoured to improve its relationship with its customers, employees and the environment. Indeed, the bank’s management repeatedly states that its strategy is holistic such that it incorporates the three factors (customers, employees and the environment) to increase revenue and enhance life in the society (Kim & McKenzie, 2010).
In a bid to not only meet but also exceed its customer expectations, the bank has put in place elaborate measures tailored to satisfy customers’ unique needs. Foremost, every consumer is treated with great respect. In the course of dealing with customers, the bank request for highly confidential information that is stored in its database. The database has enhanced security features that make it impractical for unauthorised persons to access customers’ personal information. The bank’s code of conduct demands that its employees must treat consumers’ information with utmost respect and secrecy. Revealing such information to the wrong persons is treated as a breach of the bank’s policies and one can be fired or even prosecuted. Customer satisfaction is the bank’s main strategy and overarching priority (Lessambo, 2013).
Its customer strategy is built upon four capabilities: people; technology; productivity; and strength and has borne fruits as its satisfied customer base continues to expand. The bank boasts of an industry-leading customer reach, customer-focused technology systems and customer-focused and collaborative people. Every action at the bank is aimed at fulfilling consumer needs. While other banks in Australia recorded shrinking growth, NAB registered impressive growth across diverse parts of its retail banking business. Its ethical treatment of its customers played a great role in boosting its growth. Any issue raised by the customer is responded to within 1 day and the bank ensures that any outstanding issues are handled within 2 days. Moreover, customer issues are resolved efficiently. The bank has a policy that encourages its customers to give the management their feedback. Complaints received are acknowledged within 24 hours and they are responded to within five business days. The banks ensures that it apologize for any wrong committed (Johnston & Marshall, 2013).
As the world faces the danger of increasing temperatures (global warming), NAB has been in the forefront in reversing this dangerous trend. The bank is committed to lowering the effect of its activities on the environment and climate change. This is the principal factors that have seen the company put in practice numerous energy efficiency initiatives that have led to reduction in carbon emitted. The bank has been modifying its premises to alter the manner in which the bank heat, light and cool its facilities. In 2007, NAB became the first Australian bank to commit to lowering its contribution to climate change by becoming carbon neutral in 2010. The bank remained committed to this objective and in 2010, the bank again scored another milestone by becoming the first bank to be certified Carbon Neutral. In the past six years, the bank has invested $1.3billion in renewable energy (Lessambo, 2013).
In the same year (2010), the bank launched “Plant your Paper Back” initiative that would expand workforce’s consciousness of the effect of their paper use on the natural environment. An increasing number of employees have volunteered with conservation organizations and by the end of 2013; NAB employees have planted close to 22000 trees, grass and other plants that conserve the environment. The initiative has seen workers become more responsible in their utilization of papers in their day to day operations. In the last 20 years, NAB’s subsidiary in New Zealand has been in the forefront in protecting kiwi natural habitat. Through such efforts, the number of kiwis has gone up significantly. A special card (Kiwi EFTPOS card) has been offered in the past 11 years and an estimated $NZ170000 is generated to support the Kiwi initiative (Johnston & Marshall, 2013).
The bank understands that to achieve its strategies, it must treat its employees with great dignity and respect. The employees are the main contact between the bank and the customer; a poorly treated employee will not offer quality services to customers which may risk the company’s customer-focused strategy. The company employs participative management style in which the input of the employees is incorporated in the decision making process. As a result, employees feel part of the company and consequently, they fully embrace the decisions made. Talent nurturing and development of innovative ideas is the trademark of the company. Accordingly, over 75 per cent of people at managerial positions began their career at the bank and has risen through the ranks. Employees are entitled to numerous benefits including sharing the bank’s annual profits. Extended maternity leaves are offered; lactating mothers can breastfed and bond with their children in a specifically designed place within the bank (Johnston & Marshall, 2013).
The 21st century customers are complex to deal with given their unlimited access to all kinds of information. They will demand that a company treat its employees well and be sensitive to the environment. NAB has put in place practical and ethical measures in environmental protection and involvement of employees in day to day running of the bank. The environmentally conscious customer will continue streaming into the bank therefore boosting the bank’s returns. Indeed, few customers are willing to be associated with organization whose environmental protection programs have failed to materialize. Employees are the bank’s ambassadors and contented employees will act as good ambassadors and thus assisting in attaining the bank’s strategy (Johnston & Marshall, 2013).
Despite the progress the bank has made to improve its relationship with its customers and employees, more effort need to be undertaken for mutually beneficial relationships. Research has shown that the bank has been the major beneficially of these relationships. The bank has been more interested in gaining business at the expense of long-term mutually beneficial relationships. The Walters’ family case is one of the cases in which the bank used misleading information to gain business. Complaints by customers over the quality of the bank’s service have grown tenfold in the past two years. In addition, an increasing number of employees have been engaging in fraudulent deals implying NAB’s corporate culture has failed to impact the desirable features. Once these issues are streamlined, the bank will gain its eroded reputation and attract more customers as well as attract and retain the best workforce (Johnston & Marshall, 2013).
References:
Johnston, M. W. & Marshall, G. W. (2013). Contemporary Selling: Building Relationships, Creating Value - 4th Edition. New York; Routledge.
Kim, S.-J., & McKenzie, M. D. (2010). International banking in the new era: Post-crisis challenges and opportunities. Bingley, U.K: Emerald.
Lessambo, F. I. (2013). The international banking system: Capital adequacy, core businesses and risk management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
