Efficiency of the Banking System
I have this feeling that the banks are getting less and less efficient these days and getting more and more detached from the needs of the consumers. As it stands today, interbank funds transfers take up to 3 business days to complete when we already remove the burden on the banks and DIY the transactions via internet banking. Shouldn't it be faster to process considering that such electronic transactions have already eliminated much of the backend verifications required?!
Then, there was the cheque truncation system (CTS) that was adopted recently. According to one of the CTS FAQs, "... CTS will enhance the operational workflow of banks by eliminating the need to move cheques physically from one bank to another... This would enable the banks to enjoy greater efficiency and provide better service to their customers...". However, we are now informed that there will be a move to 5 days clearing week (5DCW) and cheques deposited near the weekends are potentially cleared only by Tuesday of the following week.
Once again, consumers have been denied the fair, square deals in dealings with banks. First, we are offered low interest rates for our deposits while interest rates for loans we take goes up and up and now, the liquidity of our available funds is hindered.
It makes me wonder if banks are actively trying to improve their efficiency or are they just plain concerned with their bottomline. Why should something that is not broken be fixed since it still brings in the profits? Why invest in new technology to up efficiency if it does not bring about tangible and significant increases in revenue?
Then, there was the cheque truncation system (CTS) that was adopted recently. According to one of the CTS FAQs, "... CTS will enhance the operational workflow of banks by eliminating the need to move cheques physically from one bank to another... This would enable the banks to enjoy greater efficiency and provide better service to their customers...". However, we are now informed that there will be a move to 5 days clearing week (5DCW) and cheques deposited near the weekends are potentially cleared only by Tuesday of the following week.
Once again, consumers have been denied the fair, square deals in dealings with banks. First, we are offered low interest rates for our deposits while interest rates for loans we take goes up and up and now, the liquidity of our available funds is hindered.
It makes me wonder if banks are actively trying to improve their efficiency or are they just plain concerned with their bottomline. Why should something that is not broken be fixed since it still brings in the profits? Why invest in new technology to up efficiency if it does not bring about tangible and significant increases in revenue?
Comments