CASE Bank Nassau International from Glory to Shame!

Bank Nassau International is an established bank in The Bahamas, with offices throughout the Caribbean. The bank has 10,000 employees in the Caribbean region and in early 2014 won many regional awards for innovation in customer service and technology. Bank Nassau International was cited in 2014 and 2015 by the Jamaican Gleaner as the most innovative bank in the region, and for its cross-selling of loan products to consumers, particularly when other banks would not assist. The Gleaner mentioned that the Bank had an outstanding 65% approval rate, had increased its Total Debt Servicing Ratio (TDSR) for mortgage approvals from 40% to 60%, and its 2012 mortgage campaign included an aggressive sales strategy wherein mortgage indemnity insurance at 98% financing was provided. Industry norms for Mortgage Indemnity Insurance are a maximum of 90%, and a maximum TDSR of 40%.

The Barbados Advocate also cited the bank for its sales training, and the ability of its employees to recognize opportunities during the moment of truth experiences and cross-sell products and services at a rate of 5 products per customer, surpassing the industry norm of 2 products per customer. Employees were rewarded handsomely for sales, and employees who cross-sold mortgage products received a $200 fee for every successful mortgage application. The Bank also threatened the market share of leading insurance companies as its license allowed it to sell life and comprehensive all risks perils coverage to cover the life of its mortgage borrowers, as well as the asset they financed.

In December 2015, the Caribbean financial markets crashed and Bank Nassau International delinquency rate increased from 10% to 65%. Its mortgage portfolio of $150 million was facing serious market risks. Customers who were once delighted that they received a mortgage loan from Bank Nassau International were becoming concerned that the banks now aggressive foreclosure department, whose mandate was to repossess every residence over 180 days in arrears, would soon repossess their dream home. The Banks marketing department was similarly challenged to find ways to maintain customer satisfaction, and increase the current moment of truth rate from its current level of 2 out of 10 to its 2012 levels of 9 out of 10. It also was charged with accelerating the payback from 10 years to 5 years on the recent electronic platform that the bank invested $10 million in. The declined moment of truth rating, together with the negative reputational risk that the bank was facing from the media reports on Bank Nassau International. The bank was now being positioned as the bank that went from glory to shame as a result of overselling mortgage products and rewarding employees for its unethical practices of finding creative ways to qualify borrowers.

You were hired in 2019 as the Marketing Manager for Bank Nassau International and management has asked you to develop and launch an Advertising Campaign by November 1, 2019, to repair the reputational image of the bank, improve its electronic platform penetration rate, and also improve its moment of truth rating. Management has requested that the measurements of success would be the moment of truth rating improving to 8 out of 10 by February 28, 2021, the usage of the electronic platform increase from 5 out of 10 customers to 9 out 10 by December 31, 2021, and reputational image of the bank, as reflected in its customer satisfaction survey improve from 2 out of 10 to 8 out of 10 by March 31, 2021. How would you proceed given these Customer Satisfaction challenges?

Key Facts*

	2012	2013	2014	2015	2016	2017	Sept. 2018
Mortgage Portfolio $ Million	$85	$75	$150	$200	$250	$200	$100
Delinquent Mortgage Loans $ Million	$5	$5	$10	$16	$25	$70	$100
Insurance Portfolio $Million	$2	$3	$120	$185	$240	$180	$90
Spread	7%	6%	4%	4%	3%	3%	3%
Non Int. Income $ Thousand	$900 thousand	$850 thousand	$1.8 million	$2.1 million	$2.8 million	$1.8 million	$600 thousand
Electronic Penetration	3/10	3/10	4/10	5/10	5/10	5/10	4/10
Moment of Truth	410	4/10	6/10	7/10	9/10	6/10	4/10
Ease of Transaction	4/10	3/10	6/10	8/10	9/10	4/10	3/10
Customer Satisfaction	30%	40%	70%	80%	85%	50%	20%%
Cross Sell Rate	30%	30%	70%	80%	85%	60%	50%

*These facts must be incorporated in your case response.