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The aftermath of the financial crisis means that banks face an uphill battle to improve their image. Enrique Goni, CEO of Caja Navarra in Spain, is so invested in earning back his customer’s trust that he takes a 30 per cent cut in his bonus if they aren’t satisfied. In an interview with Wharton Professor Mauro F. Guillen, Goni reveals how he’s aggressively changed the company.
“We did a very big, random survey of 40,000 customers asking them questions like, ‘do you think we are with you only in bad moments or in good ones too? Are we managing in a language you can understand or are we using jargon? Please rank us from zero to 10 every year.’ For example, we need a seven,” Goni says. “During two years, we got a seven. But one year, it was 6.3 and I lost 30 per cent of my bonus.”
Goni says that this data-based approach will result in banks being more transparent in the future.
“We must consider the customer something like a citizen. The crisis of confidence is a crisis of transparency. It is very difficult to rebuild transparency if there is no participation,” Goni says, “People don’t want to feel like subjects. They want to feel they have something relevant to say and something relevant to share with the shareholders.”
The bank actually shares how much money it’s making from each customer’s credit card or mortgage, and lets them determine what social responsibility initiative part of it will go to.
Goni argues that in the long run, this is good for shareholders, and that it will provide his bank a competitive advantage in a dramatically changed business environment.