Bank call centers feeling pressure of COVID-19

The COVID-19 pandemic has radically changed how banks are serving customers in the U.S., as nearly all of the major banks have limited lobby access to appointment only and shifted customer service to customer call call centers, mobile banking apps and ATMs.

The limits on in-branch banking have created huge backlogs at telephone banking centers, as retail customers have struggled to complete many in-branch transactions, while also using the contact centers to negotiate delays in loan and credit card payments as well as information on federal stimulus payments.

"Bank call centers have become the main if not the sole human touch point for banks," Bob Neuhaus, vice president of financial services intelligence at J.D. Power told Mobile Payments Today via email. "The challenges for the call centers have been magnified by increased call volume, increased call complexity, high stress of both employees and customers and a huge shift to work at home representatives."

A number of retail banks were forced to deal with heavy call volumes since the coronavirus began to spread nationwide in February.

"Fifth Third has seen a significant increase in calls, notably in mid-March, when we announced hardship relief programs for our customers, ranging from deferred payment programs for small businesses to the suspension of foreclosure activity on homes," said company spokesperson Laura Trujillo.

Trujillo said a number of call center representatives included employees that were moved over from other roles within the bank, which restricted branch access in favor of drive up and ATM banking. Fifth Third has alerted customers about long wait times, however it is still hiring phone representatives. 

In total, the bank has proactively called about 1 million customers, asking them if they needed hardship assistance and also asking them if they needed help learning how to use online banking or its mobile app.

"Our goal is to stand with our customers to help them and our communities get back on their feet," she said. "We are here to help them when they need us most."

Citibank originally saw a significant increase in call volume from customers asking about COVID-19 related issues, according to a source familiar with the bank, but has since seen a reduction after the bank developed some digital service options. 

The bank set up a microsite with information about COVID-19 assistance programs, including payment deferrals, stimulus payment information and branch hours. The bank is also seeing strong engagement with support tools like interactive chat and messaging apps, where customers can connect with bank representatives. 

Francisco Alvarez, a research associate at the Aite Group, said banks need to encourage customers to utilize more digital channels and incorporate digital technologies to relieve the pressure on customer call centers. 

"Financial institutions should consider working with their vendors to identify if more innovative features such as AI-based chatbots can impact call center operations and mitigate service disruption or peak periods."

At JPMorgan Chase, the bank has encouraged customers to explore mobile banking technologies to seek COVID-relief and manage frequent in-branch services using remote technologies.

"To help drive down call volumes and reduce the need to visit  branch, we’ve been actively communicating with our customers to encourage them to use the Chase Mobile app and chase.com to easily request financial relief, pay bills, change or cancel travel plans and deposit checks from the comfort of their home," said a Chase spokesperson.

Chase customers have used the call centers to get help with delaying payments or increasing lines of credit. He said that despite the increased volume, the bank has not added extra reps.

Digital banks lagging traditional banks

The J.D. Power study found that digital banks lagged traditional banks in managing telephone banking issues, as customers of direct banks use telephone banking twice as much as traditional bank customers. Overall, customer satisfaction with call centers fall 34 points when hold times exceed 4 minutes. 

Neuhaus said he expected COVID-19 to have a lasting impact on the branch banking model and that industry use of call centers will become a long-term fixture well beyond the life of the pandemic.

"The effects of the coronavirus on the traditional branch interaction model are likely to be long lasting," he said. "The likely long term shift to the direct banking model’s combination of call centers and digital will lead to a rethinking of the bank service model."