The New Banker: Service & Salesmanship to Boost Savings

AS THE credit pinch grows tighter, U.S. bankers are working harder than ever before to build up a new pool of capital from the humble sav ings account. While U.S. consumers have been saving between 6% and 7% of their income after taxes in the past few years, the savings fell considerably short of the amount bankers estimate they need to replenish their lendable funds. In an all-out effort to pull in more savings, the bankers are revolutionizing U.S. banking methods. Gone is the old-fashioned banker of granite mien and glassy-eyed stare.

In his place, the modern, competitive banker is often as friendly as a used-car dealerneering services for "the little man," they now compete for every consumer's dollar, are putting up new branches everywhere to catch the smallest as well as the biggest account. Philadelphia National Bank, long known as a rich man's institution, today has 21 branches, 150,000 accounts, and its assets have grown by more than $900 million. Bankers are also learning the values of advertising to get their message across, spent $82 million last year v. $22 million in 1946. New York's Chase Manhattan Bank alone spent $2,000,000 on advertising in 1956, and as a result boosted savings a great deal.

In their campaign to boost savings, U.S. bankers no longer aim their pitch solely at the head of the household, but go after the entire family. The Bank of America scrambles so eagerly after children's accounts that it even sends messengers around to schools to collect the youngsters' pennies, has 1,000,000 children's accounts totaling $25 million. Other banks are learning the same lesson. New York's Dollar Savings Bank has discovered that juvenile savers not only increase its immediate funds but that 75% of them keep their accounts into adulthood. Every banker is doing his best to attract savings from U.S. women, even go so far as to hire home economists to give household financial advice in an effort to attract the housewife's savings dollar. Beyond that, bankers, who once contented themselves with all- purpose savings accounts, are luring millions in new funds with such special ideas as Christmas funds, auto accounts, hobby accounts, rainy-day accounts, educational accounts, even special "stork" accounts.

The new age of bank salesmanship is also transforming the industry's old-fashioned marble mausoleums into modern buildings of shimmering glass, bright aluminum and soft background music, creating an inviting atmosphere that increases business. To call attention to itself, the Philadelphia Savings Fund Society has even gone so far as to deck out its tellers and passbooks in gaudy Duncan plaid. Result: there were 2,200 new accounts in the first few months.