Webster Bank in Connecticut: Treating People Right & Reaping the Benefits

It's not often I have good things to say about banks. Lord knows I dislike Bank of America. A lot. Oh, did I tell you they sent me a thank you note the other day thanking me for being a Platinum Privileges client? Funny thing is, I don't do any business with Bank of America. We closed all of our accounts with them in January 2011 after we finally finished settling Nana's estate. But I digress.

I was watching the ABC Nightly News tonight with cutie patootie George Stephanopolous when the last story of the night was about a bank doing good things in their community to help "bring America back." Just to put this story in perspective and create true contrast to what happens when you do the right thing, this story was about 10 minutes after a story about Countrywide defrauding millions of Americans and Bank of America agreeing to $335 million in settlements for their fraud (BoA acquired Countrywide, as you may recall).

It turns out Webster Bank in Connecticut is almost straight out of It's A Wonderful Life and is owned by a real-life George Bailey.

Read the ABC story below and watch the video. Trust me. You'll be moved. The video below is about more than just Webster Bank, but it's well worth the 7:30 it'll take you to watch it.

One Bank Doing the Right Thing

by Chris Cuomo, Catherine Cole, and Linh Tran

December 21, 2011

With their high fees, foreclosures and the number of families left scrambling to keep their homes, these days banks are known more for taking than for giving.

Jim Smith, president Webster Bank, is working to change that perception. He doesn't believe that all the George Baileys, the kind-hearted banker from the holiday classic "It's A Wonderful Life," have vanished.

"George Bailey was there to help his customers when they needed him, and I think that's a lot of what we're all about, and that's why it's so meaningful to us," said Smith.

Smith's father founded Webster Bank during the Great Depression to help those who were struggling to buy and build their homes. The bank expanded over the years, and now has more than 150 branches in four states. Despite the growth, Smith said the notion of profiting by helping people is still its bedrock.

Instead of moving quickly to foreclose and cover losses, Webster Bank is committed to helping families stay in their homes.

"We have a responsibility to our customers to work with them. I think of it as being in our DNA. We're there to work with our clients, to help them through a very difficult time," Smith said.

Webster Bank owns 75 percent of the loans it services, so customers don't have to deal with mystery lenders. Customers also know who to go to when in trouble, because the bank assigns all customers a loan modification officer who works with them one on one.

Bonuses at Webster Bank are also tied to the number of loans modified, not foreclosures, and to families such as the Carapasos, that makes all the difference.

"Things went south and I was unemployed. We found ourselves starting to get behind on some of the bills," said Carmine Carapaso.

When he lost his job and his wife, Paula, suffered a heart attack and then a stroke, bills mounted quickly, and their home of 20 years was in jeopardy.

"They could have very easily just foreclosed on the house," said Carapaso.

A third of homeowners who applied for a mortgage modification through the nation's eight largest loan servicers were approved last year, according to the Treasury Department, but Webster Bank said it modifies well between 60 and 70 percent of applications. The Carapasos were one of the many the bank was able to help.

"What it means to me, being able to stay in this house, is everything. Our family was brought up here. We have so many memories, and they're wonderful. It means everything," said Paula Carapaso.

Smith said the bank's strategy of helping people who need it most is also good business.

"We think the net cost to the bank of what would have been all of those foreclosures, by doing it the way we did, we've saved tens of millions of dollars. If you do the right thing it can help you grow, and you truly can do well by doing good," said Smith.

Customer Service Then and Now

Anyone who deals with the public is in customer service. I don't care if the position is janitor. If someone deals with the public, then they are in customer service. And even if their position doesn't explicitly deal with the public, but they happen to run into a customer of their company, they are now in customer service.

Nana worked in customer service for 40 years for what is now Bank of America (it started as Ellis National bank, then it became NCNB, then NationsBank and now it's Bank of America). She started out as a teller and through hard work over the years, she was promoted to Vice President of the Tarpon Springs, FL branch. Every step of the way, she dealt with the public. And every single day, she loved helping her customers. Whether it was helping a customer buy a $50 savings bond, open a checking account, or helping them with bigger issues, she loved helping people. She believed it was an honor to be able to serve people and knowing her the way I did, I can say with absolute certainty that she never once uttered the words "it's not my job."

One time, an elderly woman Nana had known for many years came into the bank with a man wanting to empty out her account in cash. Nana was with another customer, but overheard the woman telling another employee of her desire. Not recognizing the man and knowing the woman's family well , Nana called the other employee over and told her to stall the woman until Nana was finished with her customer. When Nana finished helping the first customer, she called the son of the elderly woman to make sure this was legitimate. It turned out the woman was being scammed by someone with less than scrupulous desires and because of Nana's intervention this was prevented.

I remember another incident a few months after she retired. The phone rang one day and it was her former boss. It seemed that he had a rather prominent (read: wealthy) customer in front of him who was upset with something the bank had done and was prepared to withdraw all his funds from the bank. The bank manager apologized for the error and tried in vain to talk the customer down. Finally, he asked the customer if there was anything he could do to keep his business. The customer responded that the only person who could convince him that this wouldn't happen again was Frances Paulk, even though she had nothing to do with the problem he was experiencing with the bank. Nana was only asked to speak to the customer on the phone, but she had known him for years and so she got in the car and drove to the bank to meet with him and reassure him that the issue would be resolved in his favor and would never happen again. Nana kept this man's accounts with the bank.

Her outstanding customer service was rewarded many times over; she won many awards from the bank for her superior service and even won the "Courtesy Award" given by the Tarpon Springs Chamber of Commerce. Customers waited in line to be helped by Nana even when other bank employees were available and could assist them. She had customers who were loyal to her for all of those 40 years. On her last day at NationsBank, customers showered her with flowers and gifts to thank her for all that she had done for them over the years. They came in person to thank her for her service and to tell her how much she had helped them. If they couldn't come in person, they sent letters and cards. In fact, there are two drawers full of letters from customers (or their family members) written over 40 years thanking her for her service to them and the way she especially helped to protect her elderly customers.

At her visitation and funeral in July, I can't begin to count the people who came up to me with stories of how Nana had helped them and shown them how to balance their checkbook or explained the benefits of CDs over a passbook savings account to give them the best interest rate. Her service was based on a selfless desire to help others be their best. Of course, she also worked during a time when her paycheck wasn't based on how many CDs she sold or how much she "up sold" people, so they always knew that whatever she told them was in their best interest and had nothing to do with her own best interest.

Contrast that to the customer service of today.

Mom and I had to visit a large national bank today. While we were waiting for assistance, a woman who appeared to be in her late-60s or so asked the bank manager if this bank had passbook savings accounts. He said no. She then volunteered that a local community bank did. He again replied that they didn't have them. She said she understood, but that she wanted a passbook savings account (you remember the "old fashioned" kind where you had a book like a checkbook register and the bank would imprint your activity in it every time you came to the bank) and would be switching to their smaller competitor for this service. The manager's only response was okay. He did not attempt to help the woman who was clearly a customer with services the bank offered or even ask her questions about her perceived benefits of a passbook savings account. He simply said okay and let the woman and her business walk out the door.

I wish we could get back to a time when companies cared about their customers and not just about the money they could bring in. When a verbal commitment meant action would be taken or that a promise was sealed. When businesses valued their customers and would not be so willing to just let them walk out the door unhappy.

What I know for sure is that when Nana first went to work in the banking industry, her bank was a small community bank because that's all that existed in 1954. Up until the late-1990s, her bank had that community feel, even though they were nationwide. Or maybe it was just my perception because I could pick up the phone and call any branch, say I was her granddaughter and have the red carpet rolled out for me.

I think that the solution for this problem is simple: Patronize only locally-owned, small businesses whenever possible. Reward businesses that provide superior customer service with more business. Say thank you for outstanding service. Go up the chain of command and not only thank the employee, but praise that person to his or her manager.

As for myself, as a business owner, I am committing myself to upping my own customer service and loyalty to my customers in 2010.

Nana's Retirement from NationsBank (now Bank of America)

Originally posted on Remembering Frances on July 14, 2009.

Nana retired from NationsBank (initially Ellis National Bank and now Bank of America) on her 80th birthday, July 18, 1996, after 40 years of employment at the bank. During her long tenure, she was the first woman to become Vice President of any bank in the Ellis Bank Group and she mastered three different computer systems in 15 years - a feat for anyone of any age, but especially for a woman of her generation.

I remember when Ellis National Bank initially merged with another bank in the early 1980s to become NCNB. As part of the merger, the bank, for the first time ever, went to a computer system for banking. Each banker had to learn the new computer system and pass a computer competency exam in order to continue their employment. At that time, Nana was about 65 and thinking about possibly retirement. I remember sitting around her dinner table in Crystal Beach listening to her talk about whether or not she should retire and her beliefs about whether she could pass the computer exam. She honestly wasn't so sure.

But Nana was no quitter. She was a lifelong learner and believed education was everything. She was not going to let some computer system best her into retirement. So she studied and practiced everyday before and after work and when it was time to take the computer test, she passed it with the highest score of any banker, including many bankers 30 or 40 years her junior.

Over the years, the computer system would change two more times during her tenure with the bank. Each time, she had to pass a competency exam to keep her job and each time she scored the highest of any banker.

Before she retired in 1996, she learned how to use email. I'll never forget the day I looked at my email at Hogan & Hartson in Washington DC and I had an email from Nana. We emailed back and forth a couple of times before she retired. Although she never used them again, having those computer skills was a source of considerable pride for Nana. She didn't know any other 80 year old women who could use a computer and send emails across country.

The video below was made on the day of her retirement. The local ABC affiliate station came to NationsBank that day and did a story on her. It aired that night. We stayed up and watched it together. Enjoy!

Frances Paulk Retirement from Orange Video Guest on Vimeo.

Anyone Remember When You Opened a Bank Account And Got A Free Toaster?

Well, times have changed . . .

Thanks AMERICAblog!