Banking on customer service

By PAUL LEIGHTON

As president of First National Bank of Ipswich, Don Gill can't match Fleet Boston head honcho Terry Murray's reported million-dollar salary.

And he certainly can't compete with Fleet in terms of assets, deposits, branches, clout and various other measures of a bank's size and scope.

But there's one thing Gill can do that Murray cannot.

"I see every single employee every day," said Gill. "I can do that at an institution of this size."

When you're operating in the considerable shadow of a banking monolith like Fleet Bank Financial Corp., you look for every edge you can find.

Smaller community banks like First National Bank of Ipswich are hardly cowering in the wake of last year's merger between Fleet and Bank of Boston. Instead, they've positioned themselves as the friendly neighborhood alternative to the impersonal giant.

Gill said his bank has increased its number of checking accounts by 20 percent in the last year. He can't say for sure how many of those new accounts came from former Fleet or Bank of Boston customers. But he is convinced that Fleet Boston can't match his bank's hometown feel and customer service.

"Fleet has become such a giant monster, they can't do what we can do," said Gill.

First National Bank of Ipswich has increased its assets from $120 million to $170 million since Gill took over as president three years ago, and he attributes much of that success to a renewed emphasis on customer service.

"Clearly the bank wasn't doing well," said Gill. "I got all the employees together and asked, `What's wrong?' One guy finally said, `It's a cold bank. People don't respond to people right away when they come through the door. It's not comfortable.'"

Gill, who described himself as a "high energy" person, established a training program for all employees aimed at improving customer service. He walks behind his tellers every day, he said, and tells them they're the most important people in the bank.

When the bank opened a new branch in Essex, it included a fireplace and couch where customers can sit and read the newspaper. Civic organizations like Little League and Girl Scouts can use the bank's "community room."

Gill also set out to increase the bank's visibility in the community. Twenty employees, including Gill, showed up at last year's Essex Clam Fest. A marketing campaign adopted the slogan, "Investing in Relationships," and the bank established a new logo with a peaked roof and a bird.

"The philosophy is to get it so they see it and recognize it. They don't even have to know the name," said Gill. "I worked for Fidelity for a number of years and one of the things Fidelity taught me is you've got to get out in the community and let people know who you are."

First National has also expanded its product line to include its own debit card, credit card, trust department, construction lending, and the reinstitution of its Christmas Club account. It planned to offer online banking services in December.

"In the first couple of years (Internet banking) will be another product line," said Gill. "In five years or so, that will be the future. That's why we're building ATM's instead of branches."

Commercial lending is still "the engine that drives the bank," said Gill. But for banks to compete, they must offer as many services as possible.

"It's more expensive for us (to offer more products), but it's what the customer wants," said Gill. "I can honestly say we offer all of the services that a Fleet or a Citizen offers."

There are times, however, when small banks like First National cannot compete with the big boys. Gill recalled a customer who asked him to match the 7 percent certificate of deposit rate being offered by Fleet Boston and Sovereign.

"I told her, `That's a great offer. I can't compete with that,'" said Gill.

But as much as Fleet Boston can flex its financial muscles, community banks like First National feel they can slip any knockout punch by staying smart and flexible. And friendly.

"We have no illusions of grandeur to be a billion-dollar bank," said Gill. "There are three banks in Ipswich. I tell our employees, `If you aggravate a customer they're going to walk out the door and walk 20 feet either way.'"