Thursday, 21 May 2009

Lets Decline Bonds but Up Admin Fees!

Go Standard Bank. At the moment, the top bank amongst PEOPLE of South Africa and Bond Originators!

Not sure if any of you follow property news but if you read this article last week:

READ IT & then I'd like you to read the below:

Quoted from: Mr Charles Black an independent International financial specialist... and a Standard Bank multiple mortgage, savings and fixed deposit client.

Well this smacks of greedy banking and badly managed banking practice. It simply seems that unless you have the banks insurance you will pay more, smells of forcing people to use their insurance and removing the fairness practice of freedom of choice. Hit the free hardest, in their pockets. My insurance is at least 20% cheaper than that offered by the banks, now I need to switch this back to them, and save less and still pay higher monthly fees.

With regards internal costs why not do some good and save paper and the trees by being the first bank to go paperless and have statements available in electronic format and only printable at an ATM at the clients costs. That's good banking.

The comments of protecting its deposit holders scares me, try deposit cash, then you will see what it costs the deposit holder. I think this is pointing at similar issue to elsewhere in the world. Is Standard Bank running out of cash? Is their a liquidity problem looming and a bailout looming. Is the loan versus deposit ratio out of kilter and the result being that more deposits are required. Is the man in the street being asked to pay more to cover rising defaults and the costs thereof.

Simply put I think Standard Bank needs to be very clear on the message they put out to the person who banks with them. As a client I expect service and if I don't get what I want I should change banks. That's what I intend to do. After all, its our money, that we have invested with them, that they say they want to protect, but it is the same "we" who are being penalised by increased costs, lack of lending facilities and who risk being at the banks mercy". Standard bank needs a wake up call.

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