Training Bank Tellers - Detecting Kiting

Check kiting is a form of fraud involving moving theoretical funds between two or more checking accounts.  A check written to the criminal from one bank is deposited, and more importantly credited, to an account at a second bank. Because that second bank now shows a positive balance, the criminal can withdraw enough money to deposit back into the first bank before the check bounces for lack of funds.

This form of check kiting may seem to be too complicated for such a small payoff, but flipping the funds back and forth between accounts can buy the criminal enough time to generate real money to cover any other outstanding checks.

Some people have been known to use this method, called payday kiting, when several checks on an overdrawn account may come due before a paycheck or other regular funds can be deposited. The payday kiting scheme depends on the bank's delay between receipt of deposits and checks and their eventual processing, also known as "float time."

When kiting takes place, the financial institution stands at risk.  If a kite goes undetected, the account holder may have numerous financial institutions involved.  When the kite stops "working," usually the last institution involved experiences a loss.

Here are steps to take to determine kiting and minimize risk:

Tighten the review process on all funds deposited by an account holder that include any item drawn on other banks that the depositor is the maker of the item, even if it involves a cashier’s checks or money orders where the remitter is the account holder.

Tellers are to alert management anytime

• The size or frequency of these types of items exceed a certain conservative amount
• When a quick review of the depositor’s account indicate withdrawals and deposits that are for the same amount.

 Place special instructions on the account to alert other tellers.

Contact the other institution(s) involved to confirm the funds are available, if not, refuse the check or send the check for collection.

Alert the compliance officer of suspicious activity.

Financial institutions lose millions of dollars annually as a result of kiting schemes.  The strongest method for deterring or stopping kiting is observant, alert tellers, and the aid of the computer to detail a list of all items presented for payment that are drawn against uncollected funds.

The institution would be well-advised to purchase "watch dog" software that overviews all potential kiting or to have a kite-watch procedure where all "not on us" items of an established amount (i. e., $5,000 or more) are placed in a review bin so a designated deposit review person gives these items a second look.  Centralizing the effort allows a few "specialists" to become very familiar with depositors moving money from one institution to another, amounts, frequency, etc.  Also, this approach allows tellers to work efficiently and reduces the need to slow transactions down delaying the account holder at the window, as well as others in line.

Stay tuned - more to come on training tellers. 

Still learning,

Honey

High Performing Branches - Installing a Sales Culture - Part 3

As expected, there are a number of elements necessary for a financial institution to have a fully integrated sales culture.  A financial institution with an entrenched sales culture knows that to create that culture at a high rate of speed you are looking at two years, at least.  Not only is the target constantly moving; the bar for achieving a fully integrated sales culture is always rising.

Many banks attempt to simply overlay new concepts over existing organizational structure.  The flaw in this is that it leaves existing thinking in place. In order to change a culture, you have to change thinking through role modeling, training and conveying expectations.  The decision to move towards a sales culture is the easy part.  Getting a strong majority on board and tirelessly executing the plan to deliver the results that a sales culture can provide is no doubt the hard part.  And, if getting there is hard, staying on top of a thriving sales culture is harder.

Get the Picture!

Executive management must have a true picture of where the institution is today and where it needs to be headed.  Establishing a clear picture of what a successful sales culture will look like is the foundation of success.  Everyone must get the picture.  Especially leadership in the branches, and, most definitely,  those leaders that the branch managers look to for direction.

Declare Victory Over Your Desired Outcome; Then Work Backward.

Community banks have the advantage of doing many things extremely well.  Know their customers in ways that bigger banks can only dream of; they genuinely serve the communities they serve and can traditionally respond quicker to the needs of the customer.  

Yet when it comes to building relationships with customers methodically, cross-selling a broad product range, and developing a true sales culture throughout their organization, community banks frequently lag in comparison to larger banks.

Vision, Values, Mission

It is critically important to have a clear vision of where the company wants to go and when it plans to get there. The CEO will need to sell and tell that vision, then require all responsible parties to contribute to developing a plan of attack to achieve the vision.  Another key to a sales culture is developing values that describe how everyone on the team will need to conduct themselves along the way. 

Lastly, a plan is written with measurable goals that are realistic, obtainable and are supported by clear strategies that ensure action is taken and monitored.   

That common bond that is formed from having a clear understanding throughout the company of what the vision and values are establishes the mission.   That mission is what creates a synergy and excitement that is evident in terms of camaraderie and results.

 

Still learning,

Honey

High Performing Branches Embrace Selling - Part 2

Don’t Miss the Growth Curve

Nearly one-half of the companies listed in the Fortune 100 in the 1970s are no longer in business. While there may be many contributing reasons, the bottom line is that each failed to maintain a growth curve necessary for long-term success. With ever increasing competition, marketers are learning that success, in the long run, requires both offensive marketing (attracting new customers) and defensive marketing (retaining existing customers).

A culture that supports both offensive and defensive marketing has been called a sales culture

Many community-minded financial institutions miss out on the key to growth and expansion simply because they lack a sales culture within their institution. The fact is, financial institutions are growing and expanding, or they are shrinking and dying—there is no in-between. Their survival is based on the ability to effectively and efficiently manage opportunities, keep and expand services to their existing customers/members, and continually add value to the overall franchise.

Why Do We Struggle So With Selling?

For the most part, banking professionals don’t like to sell!  Most bankers are clear they were not hired to sell they were hired to fulfill a position, a responsibility that meant managing the business of banking from their desk.

After all, selling has not enjoyed the greatest reputation in the marketplace.  Nonetheless, it doesn’t matter what you call it—business development, relationship management, client service, or customer relations—it all adds up to the same thing: Selling. But, sell… that’s a four-letter word! 

A Change in Our Thinking!

It’s true, the word sell is a four-letter word, but so is the word help. With that in mind, ask yourself, “How do I recommend the right product, at the right time, to existing and potential clients?” Well, if you want to help more, and, to help more effectively, here's the deal:  You need to accept and adapt the mindset that selling is helping. In the end, you will not only gain more business, but you will also open more long-term relationships with all of your customers. It’s been said over and over that we are all selling something whether that is ourselves, our ideas, our products, and/or our services.

Stay tuned this week...more is coming on building a high performing branch., till then...

Still learning,

Honey

Building Success at the Branch - Part 1

Building a highly successful branch requires serious thought, research, questions, answers and decisions to shape and layout your strategy.  No doubt the struggle for success is execution.  Ideas are everywhere, strategies are abundant, but the lack of execution is what stalls building a high performing branch.  You have homework, you must do the dig.  So here we go.

Every branch must have an owner.  The owner has a clear understanding of what is expected and has created a plan on how to deliver.  All efforts, results, and any issue that impacts the branch is the responsibility for the branch leader.  When ownership is a committee it will move like one – slow, clumsy, no one is sure who really needs to make it happen. 

What do both executive management and the strategic plan expect from the branch?  A realistic, stretch-oriented, measurable approach has to come into play for every branch.  What will you use to be able to say at the end of the year, “We did it!”?

How are the branches structured?   A glaring weakness often is leadership for the branch manager. Sometimes, the manager reports to two supervisors such an operations/branch administration person and the other a branch president.  This can create fear, confusion and conflicting direction.  Who is accountable for how successful the branch manager executes?  Coaching is required for branch managers so they can embrace expectations, receive guidance, encouragement and accountability.  They will learn how to coach best by being coached.

check out our website for tools, 

free newsletter, articles, training calendar 

we can help you build a high performing branch

www.interaction-training.com

What do your job descriptions look like at the branch level and how current are they?  What are the expectations of each member of the branch team?  Job descriptions and performance plans are how managers and direct reports know who is responsible for what.  Keep expectations clear, current and the focus of coaching.

This is the first in a series of how to build a high performing branch, more on this in a few days…

Still learning,

Honey

Training on the Frontline

Interest is high on delivering training that sticks for those deployed on the frontline – tellers and new account reps working in the branching network of financial institutions.  That interest really soars when a frontline employee makes a mistake or is out of balance or handled a transaction that resulted in an unrecoverable outage.   And should a con artist get by the new account screening process at a bank and start scamming the company the alarm for training will be triggered.

Train the Trainer Boot Camp

(designed exclusively for trainers in financial institutions)

we explore best practices on

planning, designing and implementing training that works

April 15-17, 2013

Houston, TX

Here are a few tips on how to you teach tellers and new account representatives to excel on the job.     It starts with a planned approach that dovetails with your culture, policies, procedures and technological how-to.

Culture – Frontline training must include expectations and standards on how you are to treat the customer and co-workers.  The company’s values, mission, vision and corporate goals have to be a part of this curriculum.  Familiarization training on who’s who, the history of the company, the history of the branch where your trainee will work are just a few of the key subjects that must be covered.
Policies – Distinguish between policy and procedure.  Help the frontline understand the purpose and reasoning for the company’s policies that directly impact them.  How does the frontline access answers to policy questions?  On your Intranet?  In a 500-page manual that only the compliance officer can navigate through?  The frontline has to be trained on effective dialog with customers when following policy that a customer can find objection with or be offended by.
Procedures – All procedures need to be in writing and tested by a user before implementing them.  Well thought-out, consistent procedures are the glue to making training stick with the frontline.  Integrate flow charts, checklists and screen shots along with quick reference guides and a glossary into procedure training for the frontline.
Technological How To – With hands on the keyboard, eyes on the monitor, and plenty of practice, people will learn to use all the systems, applications and software programs they need to become competent with on the frontline.

If you are looking for training solutions or want to elevate the effectiveness of training at your financial institution click here Train the Trainer Boot Camp or email me, honey@interaction-training.com.


Still learning,

Honey

Hot Tips on How to Avoid Email Embarassment

Everyone that has hit "sent" and regretted it later, raise your hand!  Remorse, embarrassment, damaged reputation, hurt feelings, even job loss are among the consequences that can be the result of emails, texting or postings on Facebook that just weren’t well thought out.  Especially, when we are reactive or too mad, too sad, too glad or are in a state of being thoughtlessly impulsive we are more likely to hit send and then later wish we hadn’t.

Here are some important reminders and tips to maintain your reputation and integrity around all your electronic communications.

1.  Assume that every work email will be read by someone other than to whom it was directed.  Your employer may review your emails at any time for any reason.

When you feel reactive and want to write an email or reply to one, try this.  Put your name in the send to line immediately, draft what you want to say, wait, wait and if you still want to send it, change out your name to the appropriate party.  You will be so glad you did this if you should accidentally hit send.  You'll be giving thanks that all you had to say, that shouldn’t have been said, only went to you.

2.  It is also safe to assume that even when you send an email of any kind from any email account that the emails can be viewed later in civil litigation or by law enforcement with a search warrant.  Of course, every email we send can be forwarded on to persons unbeknownst to us.

3. When you throw something in the "trash" on your computer it is still retrievable by someone who knows all the magic tricks to dissecting your hard drive.

4. Facebook postings are never private.  Photos of you having the time of your life may be enjoyed by your friends but when you post those photos or divulge what's on your mind, remember your friend's friends may be your boss’s wife or husband. Recently, I had someone tell me they went on a job interview and were asked to bring up their Facebook account online in the interview.

Most of us are unlikely to ever have our emails or Facebook posts became a national scandal.  But because nearly all electronic communications are, ultimately, discoverable, you may want to revert to the old fashioned pen and paper for truly private communications.

Before you hit “send” think it over so you can avoid sender’s regret.  Postpone some of your posts in order to derail future Facebook blues that could live you red-faced.

Still learning,

Honey

Who Are Your Sheroes?

I was visiting with a banker from Mississippi the other day and she introduced me to the word sheroe.  The banker explained that she has discovered a few women that she considers her heroes; she calls them sheroes.  Even though Words with Friends won't recognize sheroe as a word I have adopted it.  After our visit, I  spent some time thinking about the sheroes I have encountered, one in particular.

Jackie Greer was a standout shero; an awesome person with a generous heart.  Houston’s first woman bank officer, she had that amazing and special ability to zero in on you and make you feel special.  An hour with Jackie Greer would leave you feeling like you could take on the world.  She died a couple of years ago and I feel certain the stars in Heaven got brighter.  That could be because she ordered and directed a team to get out there and shine every single one of them.  She was adamant about learning, growing and making a real contribution as a show of gratitude for all your blessings.

When Jackie set out to do something it was going to happen.  She had imagination, compassion, a big heart, and a following of both men and women who had the good fortunate to call her friend.  I was never surprised to hear of what was going on with Jackie.  At 70, she became a lead Business Development Trust Officer at a large, independent Houston bank.  At 80, she was helping a corporate group market a new product.  At 90, she wrote her book and throughout her life would frequently volunteer to teach Sunday School or go help someone out.  Jackie never missed a chance to go to bat for a cause she believed in or for someone she cared about.

For decades, she called every visitor that attended a very large Methodist Church to tell them how happy she was that they had visited.  She would engage them; learning all about them.  Before the call ended, she would tell them she wanted to see them again the next Sunday.  One Sunday, she missed church.  It was an excused absence; Jackie had a pacemaker procedure and was in the hospital.  The Senior Pastor called and called her room that Sunday afternoon but the line was always busy.  When he reached her he told her he thought maybe her phone was out of order.  Jackie explained the phone worked fine.  She had someone bring her the visitor's list and she was dialing away.  Jackie was seldom slowed down.  

Years ago, Jackie organized a program to teach young women in a disadvantaged area on how to become confident, well-mannered, successful leaders.  That program is still in place and many of those women have been awarded scholarships and gone on to significant accomplishments.

There are many women that have graced my path that I would call a sheroe.  And, I would have to say that what all my sheroes have in common is this...they are on purpose.  They actively act upon a belief that they have a responsibility to make a difference in the lives of others.  What about the sheroes in your life?

Still learning,

Honey Shelton