Alan McCormick
11 October 2008
The banking system seems to be totally log-jammed with monstrous queues and everyone being inconvenienced, especially their own staff. The banks' archaic way of approaching the current cash problem has to a large extent caused this -- so the problem is of their own making.
They require four or five days to clear a cheque within the same branch, let alone the same bank. So anyone wanting to clear a deposit more quickly has to do a "Transfer". Instead of a small cheque handled by one teller, the customer has to queue (and bug) the poor receptionist for a large form, fill it in, queue again and then bug the personal banker, or some other overworked person, to hand it in.
Presumably this person has to then vet it and do the necessary computer entries and, of course, remember to charge for the transaction, duplicating the time involved. Another problem arises as there is no place on the cheque book to record the transaction and there is a very good chance that the poor customer will not have a true balance, so to be sure he needs to first bug the receptionist for a bank statement, who also has to ensure that the correct number of pages is charged for. Again double the work.
To do a payment to another bank is similar to the above but is called an RTGS and the form needs to be filled in in triplicate and presumably at least three people need now to action that form. What a waste of paper and human resources.
Because the banks now take so long to clear cheques, of course, no one will accept them as payment in these hyperinflationary times. So everyone now needs cash to do smallish transactions, hence the monstrous queues and demand for cash.
Have they for one minute thought that anyone needing to buy a small basket of groceries would possibly collect the groceries, take them to a till and when the amount is known ask the supermarket to hold the basket while they organise an RTGS! Surely in this day of IT it should be possible for banks to set up a call in centre where shops can phone in to confirm a person using a cheque has funds to cover his purchase. Surely too cheques could be cleared in maximum 24 hours, even if it means employing overnight staffing.
Reserve Bank Governor, Dr Gideon Gono must share a large portion of the blame in having limits on how much a person can withdraw on a given day. Firstly, the limits he sets are ridiculously low (sometimes getting to be a few US cents). So anyone who has to have cash has to visit the bank several times putting more stress on the system. To compound the problem Gono will not allow businesses to draw wages for their workers, instead insisting that everyone opens a banking account -- even people earning the equivalent of less than US$10 a month. This has got to be close to crazy and makes no economic sense at all putting immense pressure on the banking system. The banks should stand up to the Governor of the Reserve Bank and tell him it is not workable, but no, they meekly accept the pressure he inflicts on their hapless staff.
Besides being totally overworked by the laborious systems the banks have devised, the staff are largely breathing other people's stale breath as few of the banks are designed for the large numbers that cram into the banking halls for hours on end. This cannot be good for anyone's health or productivity.
The problem of people writing rubber cheques is also caused by the banks. Writing cheques that cannot be honoured due to insufficient funds should surely lead to the closing of that persons account, black listing by the banking fraternity and even prosecution for fraud. That would soon put a stop to people writing bad cheques, instil confidence again in the system and make cheques acceptable again as a means of payment.
My challenge to the bank managers is to be innovative, think of their staff and customers. Quicker and better ways of doing things are there to be had.
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