Pickpocketed by Banks
Bankers are like traffic cops and plumbers, they know nobody likes them, but they tell their kids that without them western civilization as we know it would collapse.
The Banking Association of South Africa has revealed that approximately R12 billion rand is unbanked by South Africans who keep their money at home.
The reason why there is this large number of people who do not bank their hard earned cash in this country lies squarely on the shoulders of the bank because of their greedy appetite for more fees for the poor service they provide. There is no way a person earning a minimum wage can afford to have a bank account as the fees would probably take up most of their available money.
Banks in South Africa offer the same financial products and moreover they are dishonest who manipulative the prices and information, profiteering at any cost and little regard to the ordinary people and the cost to them.
The Chief Executive Officers of major banks are rewarded with obscene bonus for mastering the art of pick pocketing their customers. The banks in South Africa rip their customers. You cannot talk to them, transfer money, save or withdraw your cash without it costing you big time. Banks with a host of hidden fees claim to be transparent. The less you have to do with banks the cheaper it is.
In the United States for example, basic savings account are free and you do not pay for any transaction, unless you use an ATM out of you bank’s network but in South Africa, banks actually charge a fee for depositing and withdrawing cash.
Banks in South Africa need to realise that they need the customers more than the customers need them. Bank must understand that without customers they cannot operate because it is the customer’s deposit that they use to operate.
Banks do not want to get the right balance between making profits and making sure they do it with the right set of ethics, morality and the right principle; they are not taking enough care to ensure that the way they do things does not have a negative impact on society as a whole or the economy as whole.
It is also important to ensure that financial institutions take responsibility for educating the public at the same time as they sell their products so they could make informed choices and realise when they were being hoodwinked into accepting unsustainable financial deals and products.
Just one of the banks need to offer a cheque or saving account that is free, you do not pay for any transaction, unless you use an ATM out of you bank’s network. I guarantee that all other banks would cease to exist for the lack of customers or they would follow suit. That is competition, something we are sorely lacking in South Africa and not only in the banking industry.
The Mzansi, the low-cost bank account which was launched by major banks in 2005 amid fanfare is on the brink of extinction because it is quietly being dumped.
The key to getting more people to open bank accounts depended on affordability, accessibility and availability. The government should pass legislations forcing the financial industry to take more urgent steps to reduce costs and introduce more appropriate and transparent basic savings account.
Over forty percent of the retail banking customers in South Africa had switched service providers over the past year due to poor customer service. The constant switching is a clear indication that customer service rates highly in the customer’s mind.
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