National Australia Bank: Looking Out for the Customer
After learning that most defaults were due to health, job or marital problems, National Australia Bank revised its debt collection department to shift from penalizing people in default to assisting them in developing a work-out plan, enabling more than 90% to meet their payments and get back to good credit standing, while saving the bank more than $80 million in bad debt annually.
Keywords: Banks and Banking; Borrowing and Debt; Customer Focus and Relationships; Success; Australia;
Citation:
Kramer, Mark R., and Hugh Foley. "National Australia Bank: Looking Out for the Customer." Harvard Business School Case 719-417, September 2018. (Revised March 2019.) View Details