Modern banking is highly digital in nature and all of us are
beneficiaries of the many digitized services through ATMs, net banking or
mobile banking to accomplish many banking transactions, e-commerce transactions
and whole lot of money management. This surely, is a good thing compared to
spending time in long queues in a bank branch or filling out physical forms or
worse facing an irate or tired bank clerk (private banks call them officers or Vice
Presidents).
In the midst of such a positive and uplifting story of
banking services, one still finds streaks of irrational process rigidity in
Indian banking. I wish to narrate couple of my recent experiences.
I pay tuition fee every month to a University in Europe
where my son is doing his Masters. I have the university’s account details and
fund transfer in the normal situation would have been an effortless minor
transaction. However, that is not the case. Maybe because I have to pay the fee
in Euros and forex is still a holy cow in India though the limits have been
enhanced over these years.
I have to go the bank branch every time I have to remit the
fee carrying my passport, a copy of the passport and the cheque book. I need to
fill out a seven page physical form. OK, that is the process. A little bit
about this intriguing form. I have to write my name six times, my address four
times and signature at seven places! My bank account number has to be written
five times (14 digits)I have to write the beneficiary name and address three
times and beneficiary name four times. Of course, the name and address of the
foreign bank and the account number (20 digits) three times!
Well, banking is a highly regulated industry and much diligence
is required to avoid fraudulent transactions and money laundering activities.
So, some of these painful processes may have originated from that aspect and in
an era where physical forms and documents were to be kept in different offices
and the information was not linked. But is that the case in the era of so
called core banking software and centralized data mining and data warehousing?
And everyone talks about analytics, big data and other clouded technologies!
Why all these data once collected cannot be harvested from
the bank’s system every month, instead of making the hapless customer do the
full rituals every month? Why is it that the data written on one page cannot be
shared with all stakeholders including the RBI, if that is required? Why can’t I
fill these details online and do a recheck or declaration every time instead of
the seven page ordeal? That would have saved much time and I could have done 40
minutes of jogging or yoga!
Here is the second experience. I am not a fan of fixed deposits
in banks. I think that is for lazy folks who do not have any other means of
saving or investing money. But, my wife says cash is queen and we always need some
liquid cash. In the digital era an FD is the most liquid of assets. One can
book an FD online anytime from any device and liquidate online anytime from any
device. So, I too became lazy and one fine morning while net-banking I pulled
some money from my savings account to book an FD all in flash and I was happy.
Couple of occasions, I did liquidate my FD online. It was easy and quick though
I lost some part of the interest as penalty. Yet, for convenience sake and on a
rainy day this is great service from my bank. Story so far looks hunky dory.
Couple of weeks ago I was in need of some cash and I counted
on my FD and committed someone of a payout. This time, when I tried to
liquidate the FD online the system did not allow me. I called up the relationship
manager and he told me that I have to fill out a physical form and both I and
my wife should sign the form.
Why is it that to book an FD online is fine but to liquidate
the customer has to go offline on the road to the bank branch? Why is it that
to book the FD any one of the joint account holders is enough and to liquidate
both are required?
These are traces of feudalism still existing in banks. But
why blame only the banks? Look into the everyday processes of many
organizations-private or public. You will find such feudalistic processes. When
I say feudalistic, I mean the following aspects. First, rules are made from the
perspective of the more powerful party and often not considering the voice of
the other party. Second, there is an element of mistrust anticipated in every
process and everyone is treated as a potential cheat. And third, the master
always takes decisions for you and he is always right. No questions, please!
Do you have such experiences? Stay lucky if you don’t; stay
foolish if you do!
