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Comprehension Passages

From the Starline column

Service the other end of the line.

from the Starline column in The Star

On-line telephone and Internet services can cut the amount of time you spend in queues. Iona Minton reports.

A few hundred years ago, the task of preparing a family meal was a full time occupation for many people. Today we can pick up the phone and get a feast delivered to our door in under an hour.

Technology and industrialisation has had a profound effect on how we spend our time, but until recently queues were still time-gobblers.

At today's frenetic pace, we are always happy to find new ways of saving time on mundane chores and, for their part, the financial services industry has risen to the challenge.

Now we have an entire range of products and services available to us over the phone or via the Internet.

� Home Loans:

No more dressing up to see the bank manager for a home loan. Simply call a toll-free number that is linked to your bank and answer the questions. The whole process takes a mere five minutes and an approval can be given in 24 hours.

Nedbank's general manager of Retail Banking, Peter Backwell, says consumers are constantly seeking ways to save time and although the Internet is a great time saver not everyone has access to a computer.

Many people have access to a telephone however, and with the huge growth in the cellphone industry more people will be able to utilise phone-in services. When you call Nedbank's Homeloans Direct a consultant will be able to advise you on home loan options, interest rates, transfer and registraion costs. They can even help you locate a property.

� Internet Banking:

Internet banking was slow to take off but has grown exponentially in the last year. It is incredibly easy to use, and the benefits in terms of time, convenience and safety more than offset the monthly subscription fees.

Transactions on the Internet are also cheaper than using an ATM or a teller. Some transactions, like balance or statement enquiries, are free. You are charged a monthly subscription ranging from R17 to R50 per month depending on which bank you use.

� Insurance products:

Risk type insurance like life cover and medical insurance is also offered over the phone. While it is accessible to many it does not come cheap. This is because you do not undergo the conventional tests to establish the state of your health.

If you are a healthy non-smoking individual you end up paying for your less healthy neighbour. Another pitfall are the payout clauses.There are many exclusions and you cannot tailor the policy to suit your requirements.

� Investment Products:

Investments over the phone also carry a certain amount of risk. You will not have the same opportunity to ask questions as you would with a personal financial advisor. Dave Hudson, marketing manager at Old Mutual, says investors are still wary about ordering investment products by phone.

He said they tend to use it more as an information service. This may have something to do with the fact that no one can be held accountable if the product does not perform. The investor still likes to be reassured by an advisor. But for people in rural areas who do not have access to a branch or brokerage a phone-in or on-line service is a vital.

� Stockmarket:

Of all the investment products the buying and selling of shares is probably the most suited to online services. There are a number of online brokerages such as Tradek.com, PSG online and Utrade.

These are generally much cheaper to use than the traditional brokers and they have smaller investment capital requirements from their customers. Rob Turner, who is a director at Tradek.com, says stock trading is one of the Internet success stories. Firstly the customer Is dealing with a standardised product; when they buy a share they know exactly what they're getting.

The other advantage is that the product is totally guaranteed and bound by the rules and regulations of the Johannesburg Stock Exchange. ., The third advantage and probably the most salient is that there is no physical delivery of the product required, keeping the costs to the minimum.

Iona Minton is a consultant with Financial Fitness College, telephone (011)8836683.

Questions
  1. Give synonyms for the following words from the passage:
    1. profound (paragraph 2)
    2. frenetic (paragraph 3)
    3. mundane (paragraph 3)
    4. via (paragraph 4)
    5. entire (paragraph 5)
  2. What do the following colloquialisms and idioms mean?
    1. time-gobblers (paragraph 2)
    2. risen to the challenge (paragraph 3)
    3. toll-free (paragraph 6)
  3. Although few people have computers, what technology is freely available which can be used to utilise these services?
  4. What internet banking services are free of charge?
  5. Why might a healthy person not buy insurance on-line? Use your own words.
  6. Quote evidence from the passage to suggest that people are not racing to make investments on-line.
  7. Why are they not investing on-line?
  8. Who might benefit from investments on-line?
  9. List one advantage of buying and selling stocks and shares on-line as opposed to using a traditional broker.
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