| ARTICLE REVIEW: SANDY GUY & DAVID CROFTS (2002): 'PIGGY BANKS' (TAKEN FROM THE READERS DIGEST, AUGUST 2002) |
This article presents a critique of Australia's bankings and banking system and how it has 'gone down the gurgler'. What is so wrong and why? The article kicks off with a number of case studies, followed by some of the things that are happening. Some of these things have been increased fees and less service. Firstly, there was a report from the Australian Consumers' Association. The ACA has stated that in one Australian bank alone, over 2100 branches were shut, over 55,000 workers were sacked and (at the time of writing this article in the Readers Digest), another 56 rural branches were due to close. And for *less* face-to-face service, Australians paid a total of $7.1 billion in fees. Then there was another report by the NSW Department of Fair Trading. Since 1993 (they stated), the costs of over-the-counter transactions have *quadrupled* and the cost of using an ATM had jumped by 140%. Yet, bank profits (according to the writers) have *skyrocketed*. Last year, the combined net profit for four big Australian banks was $9.4 billion; while for one bank alone, it was a *whopping* $1.05 billion. To add insult to injury, customers had had to do the following: 1. Wait in long queues in bank branches for over-the-counter service; 2. Call call centres (if they wished to make enquiries), by dialling up a centralised number and be given the 'run-around' with several departments, AND listen to annoying pre-recorded messages and *crappy* music (no heavy metal, folks \m/). 3. Bank online (on the internet) - which many customers feel most uncomfortable about, due to the possibility of being a victim of online fraud; 4. Be hit by very large fees if your funds are too low - People on low incomes or with very high expenses had better watch out!!!!; 5. Be rich before you can be given *any* preferential treatment (because only then, are you considered as *more* profitable); and; 6. If you don't like it, go to Australia Post and use their 'giro-Post' service (which only performs basic banking functions like deposits, withdrawls and bill payments). What would ordinary customers like to see? Guy & Crofts (2002) stated that most customers would like to see banks return to the 'old days' when banks were friendly, reliable and socially responsible institutions, where everyone got the same level of service, reasonably low fees and adequate staffing levels at the branches. Otherwise, banks might see the following from their customers: dissatisfaction, dissatisfaction and *more* dissatisfaction; not to mention complaints, closing accounts and failing to recommend a bank to a family member or friend. In the meantime, what can customers do? They can:- 1. Select their accounts carefully, so they choose they account that *most* suits their banking needs and habits; 2. Read the fine print, especially when it comes to terms and conditions, so one can avoid *any* nasty surprises; 3. Avoid 'fee-hungry' activities, like *not* using other banks' ATMs, or paying by Direct Debit instead of by cheque; 4. Keep an eye on their accounts/bank balances, so they can avoid dishonour fees (when an account has insufficient funds to cover honour cheques and direct debits; 5. Report *any* unauthorized transactions that may appear on one's statements. And unless banks can get their acts together, this is the most customers can do. While this is far from perfect, it is better than a kick in the ass. Otherwise, I couldn't agree more with what Guy and Crofts write about, and it is about time we poor customers did what the Venom song says (or the Warumpi Band song says - depending on your musical taste :-)): To Stand up and be Counted!!!!!! |