The Evolution of Leadership in Banking: From Authority to customer-centric models
Wednesday, June 19, 2024

n 2003, a man called Frederick Reichheld conceptualised a method of measuring an organisation's relationship with its stakeholders. Reichheld created a process of assessing customer sentiment that went beyond the commonly used customer surveys. Turns out he was onto something.

"How likely are you to recommend this company to a friend or relative?” was the very basic question he posed to customers. Net Promoter Score (NPS) is the technical term for this customer satisfaction metric and has since grown in application, going as far as determining institutional value in several international markets.

In banking today, customer satisfaction is the primary measure of corporate success. We have learned however that achieving this benchmark is not only a function of good service or advanced technologies.

Good leadership, without a doubt, is the only metric that determines effectiveness of any institution. Lead well enough to create an environment of ownership. Inspiring leadership is invisible yet present, guiding without commanding, influencing without overpowering.

KCB Group has created a focus on development and progression of leadership over the last 16 years in Rwanda, which has manifested itself in the financial prowess of its Rwandan subsidiary, BPR Bank.

In the past, banks were seen as authoritative, many of them were seen as overly controlling and conservative. But if you look at today's business landscape, leadership in banking has evolved significantly. The importance of a customer has required a more inclusive, and empathetic style of governance.

However, the questions being asked to all stakeholders are: What constitutes good leadership in banking today? Is it the ability to generate profits, the foresight to innovate, or the capacity to build trust and loyalty among customers?

The answer, perhaps, lies in a delicate balance of all these elements. A good leader must be visionary yet practical, empathetic yet decisive, and most importantly, ethical and transparent.

Recognizing such a leader requires an understanding of certain key characteristics. Good leaders are often distinguished by their ability to listen and adapt. They demonstrate a real concern for their employees and customers, fostering a culture of respect and collaboration.

They possess a clear vision for the future and are adept at steering their organizations towards long-term success while maintaining a strong ethical foundation.

As customers, do you recognize these traits in the interactions you have with your bank? Do you feel heard and valued, or are you just another account number? It's worth reflecting on your experiences and asking yourselves whether the leaders of your financial institutions are truly serving your best interests.

Are they transparent in their dealings? Do they prioritize your needs and concerns? Do they inspire confidence and trust?

Starting on Wednesday, June 19 and throughout this week, BPR Bank will be meeting and engaging with customers and the public through multiple road shows in Rwanda. This is part of the bank's thematic brand campaign, following through on it's brand purpose; For People, For Better.

The campaign will be a colorful and extensive affair, but more importantly a reinforcement of the bank's pledge to lead with distinction, while providing best in class service. The roadshow activations will introduce customers to a range of new digital platforms and transactional services.

Great institutions would not exist without inspiring leadership. In prioritizing the customer, several noteworthy people have dedicated copious amounts of time to shape institutional policy, financial strategy and culture, ultimately determining the financial and social development success we know today.

As we navigate the complexities of the modern financial landscape, it is imperative to recognize and demand the highest standards of leadership. Only then can we ensure that our customers' experiences are not just satisfactory but exceptional.

The writer is the Head of Marketing, Corporate Affairs and Citizenship at BPR Bank Rwanda PLC