RBI Deputy Governor warns of "lack of empathy" among bankers, urges for better customer service.

Reserve Bank Deputy Governor Swaminathan J has expressed concern about the rising number of customer complaints, particularly around serious issues like fraud, and attributed it to a "lack of empathy" among bankers. He emphasized the need for bankers to regain personal awareness and responsibility, even in a digital context, to build trust with customers. Empathy, curiosity, and integrity will define success for bankers in the long term, he said.

Reserve Bank Deputy Governor Swaminathan J has expressed grave concern over the escalating number of customer complaints, particularly those related to serious issues such as fraud. In a recent address at the RBI-promoted National Institute of Bank Management (NIBM), Swaminathan emphasized the critical need for bankers to exhibit empathy and personal responsibility, even in a digital context, to rebuild trust with customers [1].

Swaminathan highlighted that while automation has increased, the sense of personal ownership and empathy has decreased. Customers often face issues like template emails and endless helplines, which can be frustrating and disempowering. He underscored that addressing these issues is essential for sustaining public trust in the banking system.

The Deputy Governor cited instances such as senior citizens struggling with ATM PINs, rural borrowers facing challenges with online loan repayments, and small business owners worrying about UPI payments. These are not just service requests but opportunities for bankers to demonstrate empathy, professionalism, and patience, thereby earning customer trust. He emphasized that technology can facilitate transactions but building relationships and earning trust is a human endeavor [1].

Swaminathan also stressed the importance of personal awareness and responsibility in banking, even in a digital age. He noted that KYC (know your customer) procedures should not be reduced to mere rituals but should reflect a genuine understanding of the customer. Bankers must be able to blend knowledge with judgment, law with convention, and theory with practice to navigate the complexities of banking [1].

The Deputy Governor also discussed the challenges posed by new vulnerabilities such as cyber threats, phishing, synthetic identities, deepfakes, and third-party risks. He urged students beginning their two-year post-graduation course in banking to stay alert, course-correct early, and embrace unfamiliar situations as learning experiences. Empathy, curiosity, and integrity will define their success as bankers in the long term [1].

In conclusion, Swaminathan's speech underscores the importance of empathy, personal responsibility, and professionalism in banking. As the banking industry continues to evolve, these human qualities will be crucial in maintaining customer trust and satisfaction.

References:
[1] https://money.rediff.com/news/market/rising-customer-complaints-lack-of-empathy-in-banking/30567220250722