Sunday, December 5, 2010
Absa vs Bond originators
Absa is now totally ignoring the fact that consumers will be in the driving seat in the very near future. The newly drafted consumer bill (hopefully) will come into force soon.
The bank is placing race and politics before consumerism. The recent issue with Solidarity has shown the bank's real colours. (Pun intended) It is all about race.
The same is happening now. The banks consumers who wishes to do business with the bank via a bond originator will not have a choice anymore. You will work with their
preferred provider ( which incidentally was chosen because of its black empowerment status- a race issue again !) The bank is laughing the issue off by hiding behind their social responsibility or some crap like that.
Beware of the group ! Barclays has been implicated in Tax avoidance schemes and is also hiding behind the law. (various articles on the issue available on request)
Isn't it time clients started to vote with their feet ? Showing their soles to the bank as they are leaving ?
http://www.sake24.com/Ekonomie/Absa-strategie-kan-boemerang-20101203
Tuesday, November 9, 2010
Banks and their customers
Some interesting findings in a survey by Accenture published in Mail and Guardian
In a bid to keep customers, banks are trying to cross-sell to existing customers (87%).About 54% are pursuing new customers and 33% are increasing the prices of their products and services to recover profit.
(How stupid can they be ? Nothing planned in the line of service improvement. They are not taking into account that customers are more and more beginning to be in control and demand service level agreements. Take into consideration that this was a world wide survey. Comment by John Brandow )
"The banks that will win the race to rebuild profitability will be those that recognise their customer relationships have changed for good," said Wendy Pienaar, a senior executive at Accenture South Africa's Financial Services practice.
What do customers want?
In a nutshell, the average person who banks expects more sophisticated customer segmentation (which will deliver more personal service) and wants to define and select banking services. More affordable products and innovative technologies are also required.
The Accenture survey points out that there's a shortfall between service demands and the current capacity of banks to meet those demands.
I rest my case. What case? The one where I say that banks does not understand the word service or relationships
They(customers) are more confident when they make financial decisions themselves and are sceptical of bank brands, moving away from banks that give poor service.
http://www.mg.co.za/article/2010-11-08-banks-will-struggle-to-meet-customers-demands-says-survey
In a bid to keep customers, banks are trying to cross-sell to existing customers (87%).About 54% are pursuing new customers and 33% are increasing the prices of their products and services to recover profit.
(How stupid can they be ? Nothing planned in the line of service improvement. They are not taking into account that customers are more and more beginning to be in control and demand service level agreements. Take into consideration that this was a world wide survey. Comment by John Brandow )
"The banks that will win the race to rebuild profitability will be those that recognise their customer relationships have changed for good," said Wendy Pienaar, a senior executive at Accenture South Africa's Financial Services practice.
What do customers want?
In a nutshell, the average person who banks expects more sophisticated customer segmentation (which will deliver more personal service) and wants to define and select banking services. More affordable products and innovative technologies are also required.
The Accenture survey points out that there's a shortfall between service demands and the current capacity of banks to meet those demands.
I rest my case. What case? The one where I say that banks does not understand the word service or relationships
They(customers) are more confident when they make financial decisions themselves and are sceptical of bank brands, moving away from banks that give poor service.
http://www.mg.co.za/article/2010-11-08-banks-will-struggle-to-meet-customers-demands-says-survey
Thursday, November 4, 2010
The Consumer revolution
If there is one thing that the moving of all bank accounts by the organization Solidarity from Absa to other banks and the consequence this is going to have on their members is it confirms the fact that the consumer revolution is in full swing. The time of the consumer is here. Big business better take note: Consumers have the inclination and the technology to hit big business hard when they utilize their combined strength. Absa pulled up its nose when they were confronted with issues from Solidarity and now they have to face the consequences.
Recent attitudes from the bank in disregarding their commitments stipulated in the banking code of conduct could easily have the same ripple effect.
One person cannot change Big business. A couple of persons can make a dent
A lot of persons can have a serious effect.
Use your emails! Use your databases. Send emails on bad service - Get masses involved. Start class actions. Vote with your feet ! Walk away from bad service and attitudes. Big corporates are not making you money, they are costing you money. You (The customer) are in control. Accept it and take it !
Recent attitudes from the bank in disregarding their commitments stipulated in the banking code of conduct could easily have the same ripple effect.
One person cannot change Big business. A couple of persons can make a dent
A lot of persons can have a serious effect.
Use your emails! Use your databases. Send emails on bad service - Get masses involved. Start class actions. Vote with your feet ! Walk away from bad service and attitudes. Big corporates are not making you money, they are costing you money. You (The customer) are in control. Accept it and take it !
Does the Code of Banking Practice mean anything ?
The Banking Association South Africa is an industry body representing all registered banks in South Africa.The broad role of The Banking Association is to "establish and maintain the best possible platform on which banks can do responsible, competitive and profitable banking".
The Code of Banking Practice applies to all retail products and services of a bank provided to individuals and certain small legal entities. All banks which are members of the Banking Association subscribe to the Code and are therefore bound by the obligations and undertakings.
As it becomes evident that the code was drafted from this angle it can be understood that it did not have the consumer in mind apart from the very nice words that is contained therein.
Words like the ones quoted above in red. Words that does not mean a thing as the following was considered to be part of the introduction :
None of the provisions of this Code:
will be legally binding in any court of law;
may be used to influence the interpretation of the legal relationship between you and your bank;
will give rise to a trade custom or tacit contract or otherwise between you and your bank.
So although the banks bind themselves to all sorts of promises there is no
method whereby any of them can be taken to task for not abiding by their "Promises"
The Code of Banking Practice applies to all retail products and services of a bank provided to individuals and certain small legal entities. All banks which are members of the Banking Association subscribe to the Code and are therefore bound by the obligations and undertakings.
As it becomes evident that the code was drafted from this angle it can be understood that it did not have the consumer in mind apart from the very nice words that is contained therein.
Words like the ones quoted above in red. Words that does not mean a thing as the following was considered to be part of the introduction :
None of the provisions of this Code:
will be legally binding in any court of law;
may be used to influence the interpretation of the legal relationship between you and your bank;
will give rise to a trade custom or tacit contract or otherwise between you and your bank.
So although the banks bind themselves to all sorts of promises there is no
method whereby any of them can be taken to task for not abiding by their "Promises"
Wednesday, November 3, 2010
Absa vs Originators
a cominique that was just released by Absa states that they will not entertain home loan applications from Bond Originators in excess of 40% loan to value. They might have said to them "Get out of our lives" and some words to that extend (The words to that extend cannot be written here)
A few questions arises ;
1. Are bond originators clients of the bank ?
2. If so are they not entitled to consideration in terms of the banking code of conduct ?
3. The bank has not conducted themselves according to any aspect of point 2.15 of the banking code of conduct:
No integrity was shown ( let alone uncompromising integrity)
Fairness cannot even be mentioned
No trust or confidence is being promoted for the industry
(The other banks will follow suit)
Unfortunately the Brandometer cannot go to minus bacause they do not deserve a 0%
A few other questions arises : Why does this happen? As things go it is very evident that bankstaff are nowhere as knowlegable as those in the bond origination industry. They now want to sign contracts with Estate agents to submit applications directly to them - to what end? Estate agents are not trained in any aspect of applications for home loans.
Maybe we must leave it at that and see what the other banks do.
A few questions arises ;
1. Are bond originators clients of the bank ?
2. If so are they not entitled to consideration in terms of the banking code of conduct ?
3. The bank has not conducted themselves according to any aspect of point 2.15 of the banking code of conduct:
No integrity was shown ( let alone uncompromising integrity)
Fairness cannot even be mentioned
No trust or confidence is being promoted for the industry
(The other banks will follow suit)
Unfortunately the Brandometer cannot go to minus bacause they do not deserve a 0%
A few other questions arises : Why does this happen? As things go it is very evident that bankstaff are nowhere as knowlegable as those in the bond origination industry. They now want to sign contracts with Estate agents to submit applications directly to them - to what end? Estate agents are not trained in any aspect of applications for home loans.
Maybe we must leave it at that and see what the other banks do.
Extracts from the code of conduct
All Writing in bold are those of the owner of this blog
2. Fundamental Principles of Our Relationship
We, the members of the Banking Association undertake to:
2.1 act fairly and reasonably in all our dealings with you. (If we do not you cannot take us to court - You have to call on some other act - not this undertaking)
2.2 ensure that all our services and products comply with this Code, even if they have their own terms and conditions;(Be under no illusion: the other terms and conditions will apply as you cannot enforse this in a court of law)
2.3 ensure that the procedures our staff follow reflect the commitments set out in this Code and that they are aware of the internal procedures for handling complaints;
2.4 make information available to you on our services and products in plain language (this will be provided in English and where appropriate in any of the other official languages) and offer assistance on any aspect which you do not understand;
2.5 ensure that all written terms and conditions are fair and clearly set out your rights and responsibilities in plain language;
2.6 assist you to choose a service or product appropriate to your needs;
2.7 assist you to understand the basic financial implications of our products and services;
2.8 assist you to understand how your bank account(s) works;
2.9 provide reliable banking and payment systems services and take reasonable care to make these services safe and secure;
2.10 correct our errors and compensate you where appropriate;
2.11 inform you about our complaints procedures and handle complaints speedily;( the description is "In due course" - which can be anything)
2.12 inform you, on enquiry, and where appropriate to your circumstances, if we offer products and services in different ways (for example electronic banking). We will advise you how to get more information in this regard;
2.13 take care to understand your financial difficulties and the reasons for arrears on your accounts if you approach us timeously;
2.14 comply with all applicable legislation, codes, rules and supervisory requirements, specifically those relating to banking, insurance, market conduct and consumer protection. If this Code imposes an obligation on us which is not contained in a particular law, we will comply with this Code, except where doing so could lead to a contravention of law;(There are laws governing basically every action between you and the bank - This is actually just stating the obvious)
2.15 act with uncompromising integrity and fairness so as to promote complete trust and confidence in ourselves, individually, and as an industry; ( Massive big words - we are going to investigate this to a large extend in relating to clients and incidents in the bank - Every action of the bank will be measured against this statement)
2.16 ensure that our lending criteria, the products and services we offer, are based and applied solely on commercial principles and do not discriminate against you on any basis which is not permitted by law, taking into account the implications of commercial principles. We may, however, have certain special product or service offerings which are specifically designed for members of a target market group;
2.17 recognise the banking needs of disabled clients and take reasonable measures to enhance their access to those services and facilities;
2.18 advise you what we expect of you in your relationship with us;
2.19 provide a copy or a summary of this Code, to you when you become a client or on request ;
2.20 clearly display and/or advertise the existence of this Code and our adherence thereto, in our branches;
2.21 confirm to you in writing, where reasonable and appropriate, any relaxation we grant or arrangement we permit in respect of your indebtedness to us;
2.22 ensure that you do not sign documents that you have not fully completed where required. When you request us to complete documentation on your behalf, we will ensure that it is a true reflection of the information you provided; and
2.23 generally only act on your written instructions, once we are satisfied that your identity has been established by means of your PIN (which you should not disclose to anyone), identity document, signature or other unique means of personal identification. We will accept other forms of authority in exceptional circumstances only or where the nature of the process so dictates, for example internet, telephone or ATM banking.
2. Fundamental Principles of Our Relationship
We, the members of the Banking Association undertake to:
2.1 act fairly and reasonably in all our dealings with you. (If we do not you cannot take us to court - You have to call on some other act - not this undertaking)
2.2 ensure that all our services and products comply with this Code, even if they have their own terms and conditions;(Be under no illusion: the other terms and conditions will apply as you cannot enforse this in a court of law)
2.3 ensure that the procedures our staff follow reflect the commitments set out in this Code and that they are aware of the internal procedures for handling complaints;
2.4 make information available to you on our services and products in plain language (this will be provided in English and where appropriate in any of the other official languages) and offer assistance on any aspect which you do not understand;
2.5 ensure that all written terms and conditions are fair and clearly set out your rights and responsibilities in plain language;
2.6 assist you to choose a service or product appropriate to your needs;
2.7 assist you to understand the basic financial implications of our products and services;
2.8 assist you to understand how your bank account(s) works;
2.9 provide reliable banking and payment systems services and take reasonable care to make these services safe and secure;
2.10 correct our errors and compensate you where appropriate;
2.11 inform you about our complaints procedures and handle complaints speedily;( the description is "In due course" - which can be anything)
2.12 inform you, on enquiry, and where appropriate to your circumstances, if we offer products and services in different ways (for example electronic banking). We will advise you how to get more information in this regard;
2.13 take care to understand your financial difficulties and the reasons for arrears on your accounts if you approach us timeously;
2.14 comply with all applicable legislation, codes, rules and supervisory requirements, specifically those relating to banking, insurance, market conduct and consumer protection. If this Code imposes an obligation on us which is not contained in a particular law, we will comply with this Code, except where doing so could lead to a contravention of law;(There are laws governing basically every action between you and the bank - This is actually just stating the obvious)
2.15 act with uncompromising integrity and fairness so as to promote complete trust and confidence in ourselves, individually, and as an industry; ( Massive big words - we are going to investigate this to a large extend in relating to clients and incidents in the bank - Every action of the bank will be measured against this statement)
2.16 ensure that our lending criteria, the products and services we offer, are based and applied solely on commercial principles and do not discriminate against you on any basis which is not permitted by law, taking into account the implications of commercial principles. We may, however, have certain special product or service offerings which are specifically designed for members of a target market group;
2.17 recognise the banking needs of disabled clients and take reasonable measures to enhance their access to those services and facilities;
2.18 advise you what we expect of you in your relationship with us;
2.19 provide a copy or a summary of this Code, to you when you become a client or on request ;
2.20 clearly display and/or advertise the existence of this Code and our adherence thereto, in our branches;
2.21 confirm to you in writing, where reasonable and appropriate, any relaxation we grant or arrangement we permit in respect of your indebtedness to us;
2.22 ensure that you do not sign documents that you have not fully completed where required. When you request us to complete documentation on your behalf, we will ensure that it is a true reflection of the information you provided; and
2.23 generally only act on your written instructions, once we are satisfied that your identity has been established by means of your PIN (which you should not disclose to anyone), identity document, signature or other unique means of personal identification. We will accept other forms of authority in exceptional circumstances only or where the nature of the process so dictates, for example internet, telephone or ATM banking.
The Banking code of conduct
The banks in South Africa adheres (or so they say) to the banking code of conduct of The Banking association of South Africa.
Full details available here: http://www.banking.org.za/consumer_info/code_of_banking/code_of_banking.aspx
Does this give clients a warm and fuzzy feeling ? Of course ! They just do not know that this is all a big BS story. It is Bull and the banks know it !
THE following has been copied from the introduction of the Code :
None of the provisions of this Code:
will be legally binding in any court of law;
may be used to influence the interpretation of the legal relationship between you and your bank;
will give rise to a trade custom or tacit contract or otherwise between you and your bank.
Still feeling warm and fuzzy ? If you do it is caused by the wool that has been pulled over your eyes
Full details available here: http://www.banking.org.za/consumer_info/code_of_banking/code_of_banking.aspx
Does this give clients a warm and fuzzy feeling ? Of course ! They just do not know that this is all a big BS story. It is Bull and the banks know it !
THE following has been copied from the introduction of the Code :
None of the provisions of this Code:
will be legally binding in any court of law;
may be used to influence the interpretation of the legal relationship between you and your bank;
will give rise to a trade custom or tacit contract or otherwise between you and your bank.
Still feeling warm and fuzzy ? If you do it is caused by the wool that has been pulled over your eyes
The (un) human factor
It is a fact of life that humans (as we know them) like to think they are in control. The masters of the universe.
Of course we are, We even create our own universes and then these universes start controlling us.Banks are a classic in this regard. They create systems which is to be followed to the nth degree. Whether you are the client or the servant (just another name for staff member)
A case in question: Ask any bank employee (and I mean anyone) to explain to you how they calculate interest on what you owe them. In detail off course. I have not met one that can do that! "There is system sir.............You cannot challenge it, as it was created by the ultimate fundis! (sir). It is Dogma in the bank" (see definition of Dogma)
About systems . It will control every action of every staff member - there is just sooo much information that any bank employee can comprehend . No matter what the law says - do as the bank says! Rule one......The client is always right. Rule 2. Whenever a staff member is involved disregard rule one. Rule 3. When it seems that the client is actually right, see rule 2. Rule 4. When it seems that the client is really getting the best of the argument, act dumb and run like hell to get an expert(which does not exist in the bank anymore - so just do not come back till you find the elusive expert)
Full details of an actual case can be had by sending me an email ( email address : bankdumbness@brandow.co.za)
Of course we are, We even create our own universes and then these universes start controlling us.Banks are a classic in this regard. They create systems which is to be followed to the nth degree. Whether you are the client or the servant (just another name for staff member)
A case in question: Ask any bank employee (and I mean anyone) to explain to you how they calculate interest on what you owe them. In detail off course. I have not met one that can do that! "There is system sir.............You cannot challenge it, as it was created by the ultimate fundis! (sir). It is Dogma in the bank" (see definition of Dogma)
About systems . It will control every action of every staff member - there is just sooo much information that any bank employee can comprehend . No matter what the law says - do as the bank says! Rule one......The client is always right. Rule 2. Whenever a staff member is involved disregard rule one. Rule 3. When it seems that the client is actually right, see rule 2. Rule 4. When it seems that the client is really getting the best of the argument, act dumb and run like hell to get an expert(which does not exist in the bank anymore - so just do not come back till you find the elusive expert)
Full details of an actual case can be had by sending me an email ( email address : bankdumbness@brandow.co.za)
Are banks trustworthy ? You decide !
Never ever trust Banks. They do not have your well being at heart. This morning in the Rapport newspaper there was another article where the following came out : "Irrespective of the fact that I was negotiating with the bank (FNB) and during that process they attached and sold my house on auction" Is this an isolated incident? You can bet your life on it that is not. My own experience just last month is another. My bank (ABSA) was in possession of a bank guarantee from a buyer of my property (Please note a bank guarantee - not just the possibility of something - an actual guarantee! ) they still issued summons against me - resulting in me defending the action. Normally they would see this as a mistake but what do you think happened ? When I defended they tried to apply for immediate judgment. If I was just another ignorant client ( of which they have millions) I would have been the loser.
Suddenly the last few days the banks (apparently in conjunction with the National Credit regulator ) has started an advertising campaign inviting clients in distress with their debt to SPEAK TO THEIR BANKS!
Fall for this trick at your peril ! Beware what they ask you to sign - SIGN nothing ! and I mean Nothing! Do not make them promises that you know you cannot keep. Do not sign anything !
If you even consider speaking to them take a debt counselor or an attorney with you - Rather pay an attorney this one time - You will not be sorry.
If I had the money I would put full page advertisements in the Newspaper to warn people against this very evidently new trick to repossess, get quick judgements, defraud clients and I can think of a few other words actions of the BANKS.
Banks will have to clean up their acts before clients in distress can TRUST THEM !
Suddenly the last few days the banks (apparently in conjunction with the National Credit regulator ) has started an advertising campaign inviting clients in distress with their debt to SPEAK TO THEIR BANKS!
Fall for this trick at your peril ! Beware what they ask you to sign - SIGN nothing ! and I mean Nothing! Do not make them promises that you know you cannot keep. Do not sign anything !
If you even consider speaking to them take a debt counselor or an attorney with you - Rather pay an attorney this one time - You will not be sorry.
If I had the money I would put full page advertisements in the Newspaper to warn people against this very evidently new trick to repossess, get quick judgements, defraud clients and I can think of a few other words actions of the BANKS.
Banks will have to clean up their acts before clients in distress can TRUST THEM !
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