Banking on it
The South African Reserve Bank's latest report on money and banking claims that credit demand grew 6.18% in April y/y, after 5.13% y/y growth in March.
I bet all the major banks are clapping their hands with glee. They have such limited vision; lending their money is the only way they see of making profits. Apart from, of course, charging their customers outrageous fees and pouring millions into their chosen sponsorships.
Make no bones about it, economic conditions are no tougher for banks than for other businesses and the majority of consumers. According to ratings agency, S&P, our major banks are suffering an 'asset liability mismatch with insufficient deposits'.
In short, they are not lending enough and we are not saving enough. South Africans lean towards saving with insurance companies and asset managers, rather than banks. That's old news!
As S&P said, 'All banks are a reflection of the economy they operate in'.
I would prefer our banks to function as the service industry they are rather than supposing themselves just a tier below big brothers: government and Eskom.
Over the previous year, I have coincidentally had personal dealings with three of the big four. They were all extremely frustrating. I avoid the fourth big bank because I believe it my right to choose which charities to support and how much I can afford to donate. As if any of the others are any better.
Especially since social responsibility spending is really no more than a promotional tool, which makes my contribution part of a bank's sainthood. Subsequent corporate advertising makes me feel that I'm paying twice over and getting no credit at all for it.
In my first experience, I wanted to make a donation from a Money Market account to a third party.
The managing entity agreed by phone that this was possible as long as it received the instruction in writing. I was advised to ask my local branch to fax my letter through to the HO.
When I did just that, the counter clerk refused point blank to forward the letter, insisting repeatedly that everything was managed from the branch and no withdrawal could be made except via my current account. Since this was what I had planned to avoid (which the managing entity had well understood), I closed the account on the spot.
I prefer my service providers to check as requested instead of becoming high-handed.
At the next bank, I wanted a reversal made on a credit-card transaction.
Once there, the consultant told me this was impossible. In her favour was the fact that she didn't argue when I told her that I had done as much once before and that I could take her through the steps required.
I suspect that I won the lucky draw that morning. Experience has taught me that dozens of others might have argued the point. This woman respected my understanding of the situation and listened to what I had to say.
She made the few phone calls required, found out which form she would need and we set ourselves to wait for it to be delivered via e-mail, which in banking systems is little better than snail mail. The branch keeps not a single copy of the form.
I remarked that copied instructions left on her desk for the benefit of clients were tatty and did nothing for the bank's image. She agreed, but pointed out that they promoted the insurance agent attached to the bank and not the bank entity itself. I took her point, but didn't change my opinion.
Between us, we then tore apart the life-sized poster image used on the partition between her desk and the next.
Two youngish kids (presumably meant to represent students) sat on a couch laughing...
...the female had not combed her hair for the photo-shoot and was very obviously not wearing a bra. The chap's bare foot was positioned far ahead of his body at exactly the height at which it seemed that his big toe was almost up the consultant's nose (foreshortening made his toe appear bigger than his hand).
Banks pay small fortunes to advertising agencies and models alike to promote their services and this particular poster lends nothing to the bank's image. I will never understand how such a picture could be chosen to represent a supposedly trustworthy, professional, financial institution.
Eventually our form arrived, my business was concluded efficiently and I left.
It had taken an hour instead of ten minutes, but it was at least a productive hour. Within a week I received a call to confirm the reversal of the transaction and thank me for providing all the necessary paperwork (the consultant had thought the additional paperwork unnecessary, but had again deferred to my plea).
At the following bank I asked for some literature after standing in an enquiries queue for 40 minutes.
It could not be found. Twenty more minutes later, I suggested the clerk follow up and ring me once she had it; I would drop by to pick it up. I have patronised this institution since 1976.
That was nine weeks ago and in the following eight weeks I searched the Internet site, wrote a 'contact us' letter, received three e-mails numbering my 'complaint' and eventually, a phone call from a branch I don't deal with suggesting I go in there.
When I said I'd prefer to make my decision independently (an investment of some sort might be required), my caller seemed to lose interest (along with potential commission), but agreed to post me the info, although she seemed a little confused about how postal services work in this country. Banks do not have external e-mail; I no longer have a fax machine.
In effect, experience has taught me that bank consultants seldom convey the whole story.
Three weeks later I went back to my own branch, where I left a very clear message with a rather gormless man who seemed unable to close his mouth but said nothing. His sidekick at the enquiries desk overheard me and remembered my previous visit. She wrote down my message for the bank manager.
I received a call the same afternoon to say the info was waiting for me and I picked it up the following morning. It only took eight weeks to get.
I am now feeling really belligerent because it appears I could have taken the package five years ago, but was at no time notified of this. No letter was sent to me and no 'take one' brochures about it exist within the banking hall. No notice is taken of clients or their needs, particularly if a package cannot increase bank profits.
I remember a time when I rang the bank manager for an appointment and waited no longer than ten minutes outside his office to see him. My business was concluded in another ten minutes and I could walk out of the building with a loan or product offering.
I bitterly regret the passing of those days!
On leaving the bank the previous day, I had noticed two youngsters putting together a promotional stand for Capitec in the mall's forecourt. Assuming they might be students, I asked one whether he knew enough about the bank's products to help me.
Within ten minutes, I had all the information I needed to make a decision, courtesy of a brand ambassador: the banking fees I could expect had been worked out by faultless mental arithmetic and I would only need to visit a branch once to open the initial account.
To my mind, other banks could do better with well-trained brand ambassadors instead of enquiries staff and consultants!
If you are rooting for Trevor Manuel to take over from Dominique Strauss-Kahn at the IMF, think on this: as our banking customers and banks really need better support from their employees, doesn't a creditable man like Trevor Manuel need far better support from his country?
I think Manuel is, in general, a fine man, if a bit slow on the uptake where the recession was concerned. However, under Manuel's watch corruption and fraud in this country prospered. I wouldn't trust him with my housekeeping budget.
More to the point, although someone from BRIC (note the missing 'S') should probably be considered (being the countries that have grown significantly in recent years) it won't happen because the structure of the IMF is such that new countries cannot hi-jack key roles.
What I do think should be obvious is that Africa could quite easily devise an African Monetary Fund and gather her chicks beneath her own wings, thereby setting her own rules. But no African country should consider fielding a candidate for any fund until it has its house in order.
And that, sadly, takes SA right off the map!
Studio M’s bottom line: Well, here comes Walmart and whether you are for or against, it could be time for us to define the word 'competition' and devise strategies to deal with it. I intend filing the most recent advertising received from Game and Makro, for the sole purpose of comparing today's prices with those at year-end. Let's see the savings and whether Walmart is the incentive that improves SA manufacturing.
Mo
Mo
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