Banking’s Worst Great Idea: The Universal Banker

Executive Summary  

• As retail banking has evolved, many institutions embraced the concept of universal bankers who could handle the full range of customers’ needs, in person and on demand.
• But the promise of the universal banker has proven to be elusive to achieve in practice, with many institutions now reverting to specialized roles.
• The success of universal and advisory bankers often hinges less on professional experience, and more on attitude, personality, and a desire to learn.

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"When done well, a universal approach to client needs creates a more seamless experience and allows bankers to truly understand [the clients’] needs," says Leslie Higgison, SVP of Retail Physical Channels at Comerica.

Before I jump on the soap box about banking’s worst great idea, let’s visit on the phrase "when done well." While writing this article, I spoke with a half-dozen banking executives about the concept of the universal banker and without fail, the phrase "when done well" popped up early and often.

"When done well, the economics make sense and the customer service level rises," shared Mark Beausoleil, EVP and Director of Retail Banking at the fast-growing Valley Bank.

To uncover the true power of the universal banker, we must follow first its history and acknowledge that the universal banker concept is far from novel. There was a time, a hundred years ago (if not more), when every banker was just that: A banker. This was the person you went to when it was time to save, borrow, and sometimes even beg for help. The banker was a noble profession (it still is, but that’s a different conversation for a different day), one that was afforded the same level of respect as an attorney, doctor, and even politician.

And then something happened: The move from advisory to transactional. Turn and burn. Rope lines. 15 tellers on staff at any given time. Cold. Impersonal.

The Wrinkles in the Role

Slowly, the retail banking experience has been returning to center of the industry conversation — and yet, for some reason, the word "universal" was thrown into the mix. A word that confused customers and perhaps worse, confused employees, many of whom were long-time tellers who suddenly were being asked to do something outside of their comfort zone.

Just as water finds its own level, the concept of the universal banker is now quietly being adjusted from institution to institution.

Folks at Massachusetts-based Webster Five would consider themselves to be early adopters to the new age of universal bankers and yet they acknowledge there has been a pronounced shift in focus.

Brian McEvoy, Chief Retail Banking Officer, explains: "Since 2011, the biggest change is that we have shifted from thinking about universal bankers as ‘universal universals’ to ‘universal specialists.’ Everyone is cross-trained on the basics, but everyone also has dedicated responsibilities."

Meanwhile, Valley Bank’s Beausoleil shares that "the universal banker role has become less and less transactional and far more advisory, with universal bankers seeking to understand client’s financial goals and opportunities."

Continue the article on thefinancialbrand.com.