Profit from long lines

Friday, Sept. 19, 1997 | 11:11 a.m.

Wells Fargo Bank got stuck with a reputation for long teller lines when it undertook a difficult transition in the acquisition of First Interstate Bank.

Now, the company will pay if it keeps a customer waiting too long.

The San Francisco-based company announced that beginning Monday, customers who wait more than five minutes in line will have $5 credited to any deposit account.

The Five-Minute Max program, said Executive Vice President Kathleen Lucier, is the bank's latest bid to convince customers that service lapses that occurred when Wells absorbed First Interstate Bank last year are a thing of the past.

"Right now, 95 percent of our customers wait less than five minutes in line," said Lucier. "The reason we're doing this is we want our customers to know we have a higher standard. We want to go to our customers and say we're so committed to them that we're willing to put money behind it."

The program, available at traditional or in-store locations, but not banking centers or automatic teller machines in Nevada, is similar to a First Interstate promotion that occurred prior to Wells' acquisition. Lucier said Wells pioneered the program in California in 1989 and is now expanding it beyond the Golden State's borders.

Several food-delivery and fast-food operations offer similar promotions to guarantee prompt service to their customers.

"We've designed a flexible staffing schedule to accommodate the arrival of customers at different times of the day and different days of the month," said Lucier, "so a 10-person line moves quickly and won't result in a long wait."

Lucier said some managers and assistant managers will have stopwatches to monitor progress in some branches while others will hand customers a piece of paper listing the time they entered the line in an effort to prevent waits of more than five minutes. Bank officials also expect customers to do their own monitoring if they end up in line for more than five minutes.

While Wells officials say they are setting their own standard for customer service, others see the program is the latest volley in the highly competitive battle between Wells, which is running No. 2 in market share, and No. 1 Bank of America.

Paul Stowell, a spokesman for Bank of America, said his company has no plans to duplicate the Wells program, but BofA is having continued success stealing rival customers with its own cash giveaway program.

Stowell said Bank of America would deposit $50 to a checking or savings account of a customer switching from Wells. BofA generated a direct mail campaign targeted in areas surrounding closing Wells branches and have put banners up at their own branches welcoming disgruntled Wells Fargo customers.

"There are still a lot of people out there who are uncertain about their banking arrangements," said Stowell. "So, we're hammering away at Wells."

Wells has reported some success in turning around public opinion on the company following a difficult transition after last year's acquisition of First Interstate.

Wells and banking analysts had attributed the difficulty to the hostile takeover environment and the company's bid to make changes too quickly. Wells officials have reported that the difficulty is behind them and they are ready to compete more vigorously in the Southern Nevada market.

"When the competition heats up, it's especially good for consumers," said Stowell. "It's fun to build a bigger and better mousetrap."