National australia bank
Published on: Mar 3, 2016
Transcripts - National australia bank
National Australia Bank Crisis Analysis Crystal Sowah
About NAB• NAB is one of the largest financial institutions in Australia• Founded 1893• Headquartered in Melbourne, Australia• 40,000 people operating over 1,800 branches and service centers, and over 4,600 ATM’s across 10 countries• CEO: Cameron Clyne; Chairman: Michael Chaney
NAB’s Goal• The goal of the organization is to deliver sustainable, satisfactory returns to shareholders.• NAB practices Corporate Responsibility: doing the right thing for their customers, employees and community.
NAB Services• Consumer banking• Business banking• Wholesale banking• Wealth management• Insurance• Much more
2011 NAB Crisis• Payment Processing Problems from April 14- 15• Customers expecting payments never received them• NAB rivals affected as well
2010 NAB Crisis (in comparison)• Similar crisis occurred in 2010: NAB faced a failure with the computer payment system• Largest electronic problem the bank ever faced• Payments to customers and other banks were thrown into chaos because of NAB crisis• Lasted 2 weeks
Organizational Response• Used mediums such as: twitter, company website, media messages to relay message• Message 1: NAB expressed that there was a delay in payment processing and they were researching what the problem was.• Message 2: They had identified the problem and were working to rectify it.• Message 3: All accounts had been restored
Media Response• Response limited due to lifespan of the crisis• Stories published from: – Sydney Morning Herald – The Australian Newspaper – The Age Newspaper • Stories were neutral
Stakeholder Response• Stakeholders expressive about inconvenience via twitter• Customers were irritated because the crisis forced some to pay for bills late• NAB rivals quickly moved to address their customers concerns.
Pros and cons of 2011 crisisPros Cons• Immediate communication • Post-crisis tactics not with customers once crisis apparent- No mention of struck next steps after crisis to• Responded to complaints make sure it wouldn’t on twitter happen again • Did not show enough empathy- no apology in media statement
Conclusion• NAB came off as an organization that is stuck in its ways.