Notes;

Workplace Etiquette
common courtesy
make it comfortable

Rules for the Workplace
maintain self control
listen actively
concentrate energy on problem solving
approach the person for a private discussion
pick your battles

customer is always right

Handling Customer Complaints
not necessarily a bad thing
complaints give the business an opportunity to learn something that might improve service and stop the problem from reoccurring
only 4-8% customers share their concern- non-complainers are a problem because the business never has a chance to address the issue

Guidelines for Handling Difficult Customers
argumentative; ask simple polite questions
impatient; agree first on common points
leave-me-alone; be patient
irritable/moody; be positive
insulting; be neutral
complaining; respect their thoughts

Types of Difficult Customers
disagreeable - Domineering/superior - let them have their say
Suspicious -  explain and demonstrator good service
Slow/Methodical - be sure not to overwhelm them/ check in with them ensure they are on the same page
Dishonest - don't jump to quick conclusions

Procedures for Handling Difficult Customers
Greet them - be nice
Listen- don't interrupt, let them have a say
Empathize - I'm very sorry that happened I can imagine how frustrating that would have been
Question - ask questions to clarify and let the customer know you are listening
Restate - to show you understand
Willingness to help - let them know you will do all that you can to assist them
Establish a plan - agree on a plan of action and follow through
Summarize - at the end of the call, summarize issue, further steps that need to be taken/resolution, timeframe and expected results

Golden Rules
Never argue back
Use your ears more than your mouth
Show that you care
Be patient
Be positive in your approach
Control your anger
Don't ever take it personally

Things a Call Centre Agent Should Never Say!
1.We don't deal with that - say instead it sounds like you need ..... ill just transfer you/find you the number.
2.Im just going home/I'm just going on break
3.Can I Take your Christian name please? - Can I take your first name please?
4.Calm Down - I can solve this problem for you if we can discuss it calmly
5.Im new here - I just need to research this for you/ May I please place you on a one to two minute hold while i do that for you?
6.If you keep shouting ill hang up/ terminate this call - I can solve this problem for you if we can discuss it calmly
7.Would you like to speak to a supervisor - what would you suggest for us to solve this problem for you?
8.I don't know - That's not something i know off the top of my head, but I can certainly find out for you.
9.Mate - their name Mr. X or Mrs Y. is the starting point- first names can be okay but only when you've judged the tone of the conversation just right.
10.I'll just put you on hold - I need to do ... May i please put you on hold while I do .... - two or three minutes at the most? thank them after you get off hold
11.Nothing - Dead air is generally something to avoid. let them know about why you will be silent. Instead - This is just going to take 30 seconds or so - I'm still here, I'm just going to be doing some calculations so I'll be quiet for a few moments

Secret is to remain calm
Always let the customer what you can do for them
offer a possible solution and ask if the customer is happy


Workplace Etiquette
common courtesy
make it comfortable

Rules for the Workplace
maintain self control
listen actively
concentrate energy on problem solving
approach the person for a private discussion
pick your battles

customers always right

Handling Customer Complaints
not necessarily a bad thing
complaints give the business an opportunity to learn something that might improve service and stop the problem from reoccurring
only 4-8% customers share their concern- non-complainers are a problem because the business never has a chance to address the issue

Guidelines for Handling Difficult Customers
argumentative; ask simple polite questions
impatient; agree first on common points
leave-me-alone; be patient
irritable/moody; be positive
insulting; be neutral
complaining; respect their thoughts

Types of Difficult Customers
disagreeable - Domineering/superior - let them have their say
Suspicious -  explain and demonstrator good service
Slow/Methodical - be sure not to overwhelm them/ check in with them ensure they are on the same page
Dishonest - don't jump to quick conclusions

Procedures for Handling Difficult Customers
Greet them - be nice
Listen- don't interrupt, let them have a say
Empathize - I'm very sorry that happened I can imagine how frustrating that would have been
Question - ask questions to clarify and let the customer know you are listening
Restate - to show you understand
Willingness to help - let them know you will do all that you can to assist them
Establish a plan - agree on a plan of action and follow through
Summarize - at the end of the call, summarize issue, further steps that need to be taken/resolution, timeframe and expected results

Golden Rules
Never argue back
Use your ears more than your mouth
Show that you care
Be patient
Be positive in your approach
Control your anger
Don't ever tackle it personally

Things a Call Centre Agent Should Never Say!
1.We don't deal with that - say instead it sounds like you need ..... ill just transfer you/find you the number.
2.Im just going home/I'm just going on break
3.Can I Take your Christian name please? - Can I take your first name please?
4.Calm Down - I can solve this problem for you if we can discuss it calmly
5.Im new here - I just need to research this for you/ May I please place you on a one to two minute hold while I do that for you?
6.If you keep shouting ill hang up/ terminate this call - I can solve this problem for you if we can discuss it calmly
7.Would you like to speak to a supervisor - what would you suggest for us to solve this problem for you?
8.I don't know - That's not something I know off the top of my head, but I can certainly find out for you.
9.Mate - their name Mr. X or Mrs. Y. is the starting point- first names can be okay but only when you've judged the tone of the conversation just right.
10.I'll just put you on hold - I need to do ... May I please put you on hold while I do .... - two or three minutes at the most? thank them after you get off hold
11.Nothing - Dead air is generally something to avoid. let them know about why you will be silent. Instead - This is just going to take 30 seconds or so - I'm still here, I'm just going to be doing some calculations so I'll be quiet for a few moments

Secret is to remain calm
Always let the customer what you can do for them
offer a possible solution and ask if the customer is happy


Competition
Tangerine and PC financial are the only Digital Banks that have positioned themselves as alternatives to traditional banks.

Market Share
Connected consumers are estimated to have $1.2 billion in savings and $990 billion in mortgage balances.

Market Differentiation

EQB Digital Banking offers:
- Transparent fee structures and communications
- Simple and fast service
- Effective problem handling

Relative to Traditional Banks

A digital (virtual) Canadian Bank
- Simple and easy to use
- Convenient and more efficient
- Evolving with client's needs
- Evolving with clients needs
- Interactive and in open dialogue with its clients

Relative to Banking Customers
EQB customers are customers who are,
- Young at heart
- Financially stable
- Hyper-connected
- On the go/busy
- At ease managing their investments

Personal Financing 101:

Step 1: Build an emergency fund
Step 2: Pay yourself first
Step 3: Setup automatic deposit
Step 4: Grow your savings

Investments:

1. Pay interest
2. Shares in a company
3. Property
4. Direct investment in a business

Mutual Funds
Pool of money from many investors
Managed by professional fund managers

Registered savings plans:

RRSP
-Save for retirement
-tax deductible

RDSP
Save for long term came
not tax deductible but tax free
Disability

RESP
Helps save for Education

TFSA
Not taxable
non-tax deductible

3 Knows:
1. Yourself
2. Investment
3. Financial advisor (optional)

Savings and Investing Principles
Make your savings automatic
Set up direct debits from your bank account or paycheque
Save 5% to 10% of your take-home pay.
-if you earn $2000 a month after tax
Saving 5% = $100 a month = $1200 a year
Saving 10% = $200 a month = $2400 a year
Extra money (from gifts, tax refunds, refunds, etc.) or a raise?
Save it!

Four types of savings and investments products
-Investments that pay interest (savings accounts, bonds, RRSPs, GICs, etc.)
-Shares in a company (stocks, mutual funds that invest in stocks, etc.)
-Property (real estate, art, precious metals, etc.)
-Direct investment in a business

Personal Financial Needs and Typical Products Used

Transactional - Chequing and savings accounts, credit cards, etc.
Short-term financing - Auto loans, leasing, department stores, lines of credit, etc.
Saving and investing - savings accounts, investment certificates, stocks, bonds, mutual funds
Long-term financing - mortgages
Security - insurance - car, home, life, etc.
Security - retirement - pension funds, retirement savings plans, etc.

Financial Planning - Control what you can!

You Can't control:         You Can control:
Government benefits        Cash saved for retirement
taxes                      Was to reduce taxes
rising costs               Adjusting your priorities and saving
inflation                  Maximizing your investment choices
stock market               Fees and source of advice you receive

Know Where the Money Goes - Basic Budget Guidelines:
Housing (rent, utilities, etc.) - 35%
Transportation - 20%
Other (food, entertainment, child care, medical, etc.) - 20%
Debt - 15%
Savings - 10%

Pay Yourself First - At Least 10% of What You Earn!
The three savings accounts you need:
- Emergency fund: At least 3 months salary to cover unforeseen circumstances
- Short-term savings: For items like vacations and other big ticket purchases
- Long-term Savings/investment: To cover post-secondary education, retirement, other long-term goals
Make savings automatic so you do not see (or spend) that money.

What is a credit report?

When you make a payment on a credit card or loan, the company that gave you the loan or credit keeps a record of how much and how often you pay.
Those companies and other sources also report your credit, loan payment history to one or more credit reporting companies. The credit reporting companies combine the information from your different credit, loan and payment reports into a single credit file.
Three nationwide companies prepare credit files for people in Canada: Equifax, Experian, and Transunion.

How is a Credit Report formulated?
A credit report is an organized list of the information in your credit file. Credit reports may include:'
- A list of companies that have given you credit or loans
- The total amount for each loan or credit limit for each credit card
- How often you paid your credit or loans on time, and the amount you paid
Credit reports may also include:
- Companies that have asked to see your credit report within a certain amount of time
- Your address and/or employers
- Other details of public record

What is a FICO Score?
FICO is the credit score passed along to potential lenders who use it to decide your credit rating
- FICO is a branded version of credit score
- FICO score is score most widely used by the nation's largest banks make credit and loan approval decisions for applicants
- FICO score range from 300-900 and are calculated based on information in all three major credit bureaus' individual reports.
  > Therefore, you have three FICO scores, on for each of the three credit bureaus.

How is your FICO score determined?
Your FICO score is based on five key pieces of information:
1. The timelines of your bill payments
2. Your level of debt (exposure)
3. Types of accounts you have
4. The length of time you've had credit
5. The number of recent credit applications

Tax-Free Savings Account (TFSA)
It's important to note that a product many people may confuse with a HISA is a TFSA. TFSAs can be combined with HISAs as some financial institutions.
- Introduced in 2009 to further assist Canadians in savings for financial goals
- Contributions are not tax deductible but the savings earnings are tax-free

Canadian Banking Rules and Regulations (Important)

Rules and Regulations
The financial industry is strictly regulated

What is the purpose of regulations?
>The define specific expectations for how we conduct business
> They protect customers
> They protect the name and reputation of the organization.

Bank Act and Regulations
> The Bank Act is the primary legislation governing all banks in Canada
> The Bank Act requires institutions to create and maintain records of account transactions including deposits, withdrawals and transfers
> The Bank Act regulates other financial institutions operating in Canada

Schedules I, II, III of this Act list all banks permitted to operate in Canada under these three distinct categories:
> Schedule I: banks allowed to accept deposits and which are NOT subsidiaries of a foreign bank. Examples include "The big five" banks and smaller second tier banks such as ING Bank of Canada, The national Bank of Canada, Laurentian Bank of Canada, President's Choice Financial and Canadian Western Bank.
> Schedule II: banks allowed to accept deposits and which are subsidiaries of a foreign bank. Examples include AMEX Bank of Canada, Citibank Canada, HSBC Bank Canada, and Walmart Canada Bank.
> Schedule III: Foreign banks permitted to carry on business in Canada. Examples include Bank of America, Capital One, Credit Suisse, and Deutsche Bank AG.

FATCA Agreement: US and Canada
- The Foreign Account Tax Compliance Act agreement is an international agreement signed between the US and Canada
- The agreement requires Canadian Financial institutions , and United States persons, including individuals who live outside the United States, to report the principal amount held in their financial accounts outside the United States to the IRS
- There are about one million American citizens living in Canada. This treaty also affects their spouses children, or anyone with whom they own property, share a business connection, or hold a joint financial account.
- The agreement exempts Tax-Free Savings Accounts, Registered Disability Savings Plans and Registered Education Savings Plans

Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
- Enacted by the Canadian Federal Government
- The act created a mandatory reporting system and establishes an independent anti-money laundering agency called FINTRAC.
- PCMLTFA requires financial institutions and others covered by the legislation to identify customers who conduct financial transactions such as depositing funds with Client.
- The regulations cover the following:
> Customer Identification requirements
> Record Keeping requirements
> Transaction Reporting requirements
> Compliance Regime requirements

Examples of questions that are required under this regulation to open an account:
- Purpose of the account
- Gender
- Date of birth
- Occupation
- Third Party Determination
- Politically Exposed Foreign Persons determination (which is not technically a question, it fulfills a requirement for a process to determine this)

The Goals of Money Laundering:
- Conceal the true ownership and origin of criminal proceeds.
- Maintain control of the criminal proceeds during the laundering process
- Disguise and change the for of criminal proceeds
- Ultimately use the laundered funds for legitimate purposes or for terrorist financing

Money Laundering typically involves independent steps that may occur separately or simultaneously. These steps are:
- Placement - Placing bulk cash derived from criminal activity into financial systems
- Layering - The process of separating the source of cash from its criminal origins by passing it through several financial transactions
- Integration - The process of combining illegal funds with legally obtained funds and providing a legitimate explanation of their ownership.

While money laundering is a global issue, Anti-money laundering legislation has developed differently around the world. Some countries have sought their own unique solutions while other have adopted the policies of intergovernmental bodies. This process has produced various milestones in the development of AML legislation.

1970 - US bank Secrecy Act is enacted. The Bank Secrecy Act of 1970 requires US financial institutions to assist US government agencies to detect and prevent money laundering.  Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding 10,000 USD and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.

1986 - The US made money laundering a federal crime.
1988 - The UN made a framework to criminalize money laundering for drug-related offences
1989 - The G7 summit developed policies to combat money laundering and terrorist financing

1990 - The FATF releases its forty recommendations on money laundering
1991 - The first EU money laundering directive is adopted
1995 - The Egmont Group, A multinational network of financial intelligence units from around the world is formed.
1999 - The UN adopts the international convention for the suppression of financing terrorists

2000 - The FATF adopts its forty recommendation for money laundering and releases the first report on Non-cooperative countries and territories
2000 - The Wolfsburg group is formed. An association of global banks.
2000 - The Wolfsburg Anti-money laundering principles for private banking is published.
2000 - The UN adopts the UN convention against transnational organized crime
2001 - The FATF releases its Eight Special Recommendations on terrorist financing
2001 - The US patriot act is formed.

2010 - FinCEN issues "Joint guidance on obtaining and retaining beneficial ownership information"
2011 - The Wolfsburg group issues its revised "Trade finance principles"
2011 - The annual value of money laundering in Canada is estimated to be between $5 billion and $15 billion
2012 -  The standing senate committee on banking, trading, and commerce began five-year statutory review of the proceeds of crime and terrorist financing
2012 -  The FATF combine the 40 recommendation on money laundering and the IX recommendations and named it the FATF recommendations 2012
2013 -  The committee issued 18 recommendations designed to improve the effectiveness of Canada's AML and anti-terrorist financing regimes.

What is the FATF?
> The Financial Action Task Force, also known by its French name, Groupe d'action financière, is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001 the purpose expanded to act on terrorism financing. It monitors countries' progress in implementing the FATF Recommendations by ‘peer reviews’ of member countries. The FATF Secretariat is housed at the headquarters of the OECD in Paris.

What are the 40 recommendations?
> This document is meant to provide a set of international standards that will help strengthen the integrity of te financial system on a global level.
- Criminalize money laundering- seize property to prevent further money laundering
- Undertake Customer Due Diligence measures
- Use enhanced due diligence in relationships with politically exposed persons
- Gather info about offshore initiations when conducting cross-border transactions
- Create a financial intelligence unit for reporting suspicious transactions and to investigate suspected cases of money laundering
- Monitoring operations to ensure compliance with AML legislation

Financial institutions all over the globe have different processes and procedures in place to prevent money laundering/ Globally, there are two primary ways financial institutions protect themselves from fraudulent customers.
> The first is the creation of a program to know your customers typical business practices. This program is commonly referred to as know your customer  (KYC) programs.
> The second is the establishment of a code of how to handle high risk customers, or individuals and groups that pose a high risk of money laundering and fraudulent transactions. This is often referred to as Customer Due diligence (CDD)

Importance of Identity Verification
> The first chance a financial institution has to protect itself from fraudulent transactions is when a new customer establishes a relationship, typically opening an account. That's why it is so important at account opening to verify the identity of a new customer.
> Common was to do this are to require the customer to provide proper identification and to have the customer fill out an application. It is common to have a copy of every customer's identification from the time of account opening.

What is CDD?
Certain customer relationships pose a higher risk to the financiaaijl institutions for money laundering and terrorist financing. CDD policies and procedures enable institutions to better predict the types of transactions in which a customer is likely to engage.
CDD Policies include:
> Detecting and reporting suspicious transactions that may increase the financial institution's risk of financial loss, expenses, and reputational risk.
> Avoiding criminal exposure by customers who use the financial institution's products and services for illicit purposes.
> Adhering to safe and sound practices.

The purpose of a KYC program is to require financial institution to implement reasonable procedures for:
- Verifying the identity of customers
- Maintaining appropriate records of the information used to verify the person's identity
- Determining whether the person appear on any list of known suspected terrorists or terrorist organizations
- Providing customers with appropriate notices

The FATF and CDD
CDD Measures should include:
- Identify the customer and verify that customer's identity and using reliable independent source documents, data, or information.
- Identify the beneficial owner and take reasonable measures to verify the identity of the beneficial owner,
- Obtain information on the purpose and intended nature of the business relationship
Conduct ongoing due diligence with the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution's knowledge of the customer.

Canada and CDD:
Under the Proceeds of Crime and terrorist Financing Act (PCMTLFA), financial entities have client identification obligations

Importance of Protection:
All employees should be familiar with red flags and how to spot them. "The closer you are to the money laundering, the more trained you should be to spot it"

Detecting Money Laundering:
Activities that may indicate money laundering include:
- Activities not consistent with the customer's business
- Unusual characteristics or activities
- Suspicious funds transfer activities
- Customers who provide incomplete or suspicious information
- Attempts to avoid reporting or recordkeeping requirements
- Suspicious offshore transaction activity

Red Flags of Money Laundering:
- A customer who makes large deposits and maintains large balances with little or no apparent justification
- A customer's account suddenly increases in account activity, both from cash and from non-cash items
- A customer who opens an account with a nominal balance that subsequently increases rapidly and significantly
- A customer who sends and receives money from countries who's laws can facilitate money laundering
- A customer who presents a transaction with evidence of terrorism human trafficking , etc.
- A customer who attempts to open an account without references or identification, gives suspicious information, or refuges to provide the information needed by the institution
- A customer who engages in activities that would be considered unusual (moving small amounts of money between accounts and then moving the large amount out of the country)

When Should You Report?
Institutions must file a report in any situation where there is reason to suspect that a given transaction is in violation of the law. This covers all cases of suspected criminal activity.

FIU's collect mass amounts of data through reports and then share their information with other FIU's

The requirement to report a suspicious transaction applies only when a financial transaction has occurred. A suspicious report should be sent to FINTRAC (Canada's FIU) within 30 days

Personal Information Protection and Electronic Documents Act (PIPEDA)
- Part 1 of the PIPEDA governs how organizations collect, use and disclose 'personal information' in the course of business. The law gives consumers the right to see and ask for corrections to information an organization may have collected on them.
- 'Personal information' under the Act means information about an 'identifiable individual'.
- The Social Insurance Number (SIN) is a highly sensitive piece of information, protected under PIPEDA. We only use SIN for tax reporting and record keeping.

Office of the Superintendent of Financial Institutions (OFSI)
- OFSI is the primary regulator of federally chartered financial  institutions and administered pension plans
- As part of its mandate, OFSI performs regulatory audits in compliance with the PCMLTFA

Canadian Payments Association
- A not-for profit association created in 1980 by an Act of Parliament
- CPAs mandate is:
> Establish and operate national systems for the cleaning and settlement of payments and other arrangement for the making or exchange of payments;
> to facilitate the interaction of its clearing and settlement systems and related arrangements with other systems or arrangements involved in the exchange, clearing or settlement of payments
> To facilitate the development of new payment methods technologies
> EFTs and IETs are not transferred through CPA systems
. The CPA is the body that created the regulations for electronic financial transactions such as wire transfers and e-transfers

Canada Revenue Agency (CRA)
- The governing body that provides rules and regulations as the relate to interest earnings, and products that have tax-free status, as well as RRSPs
- This body also governs the issuance of tax slips and is the authority that regulates tax reporting in general

Canada Deposit Insurance Corporation (CDIC)
- This is a federal crown corporation created by parliament. CDIC insures that Canadians' savings in case their bank or other CDIC member institution falls or goes bankrupt.
- The combined money you have in insured deposits held in one name is automatically covered up to $100,000 if your bank fails.
- Not all deposits and investments are insurable, but most are. HISA, TFSA and GICs are eligible to be insured.
- Other insurable deposit types include:
> Savings accounts
> Chequing accounts
> GICs or other term deposits with an original term to maturity of 5 years or less
> Money orders, certified cheques, travelers' cheques and bank drafts issued by CDIC member

- The EQ Bank Savings Plus account is eligible of CDIC coverage through Equitable Bank
- EQ Bank is the digital arm of Equitable Bank, a member of the CDIC
- CDIC Coverage for EQ Bank is NOT separate from that of Equitable Bank
- EQ Bank is NOT a SUBSIDIARY of Equitable Bank. It is a product or digital arm of Equitable Bank.

CDIC does not insure:
- Mutual funds (Money market mutual funds and stock, bond, or other security mutual funds)
- Stocks , bonds, municipal Bonds, and other securities
- GICs and other deposits with a maturity date of more than 5 years
- US dollar accounts