NEWS | Wednesday, 17 September 2008

New cheque deposit procedure irks customers

BoV claim it increases efficiency

David Darmanin

The new procedure introduced by Bank of Valletta (BoV) to stop cheques from being deposited at the cashier desk has irritated a number of business owners as they claim the new system increases red tape and waiting time at banks.
“I heard they are making exceptions in some branches, but as hard as I tried complaining there seems to be no way out,” a BoV customer told Business Today.
“We are now having problems when it comes to reconciliation of accounts, and this new system is also giving way to unnecessary waiting time of our staff at the bank. To top it all, we must also provide a breakdown of cheque deposits ourselves, whereas this procedure was previously done by banking staff,” another complained. “It seems like they want to reduce their processing costs and put them on us, as though they don’t make enough profits.”
But a spokesperson for BoV said the new cheque deposit process is intended to make banking more efficient for customers.
“The cheque deposit process at Bank of Valletta is today streamlined in such a way that customers no longer have to wait in line ups in order to avail themselves of this service,” the bank said. “All the customer has to do is place the cheque in an envelope and deposit it in the express deposit receptacle at the BoV branch. The cheque is then processed by the bank on the same day. This is a process that has been designed with the objective of enabling us to offer a straightforward and efficient service. For clarity’s sake, it is good to note that this process applies only to the deposit of cheques.”
But when asked whether the bank had received any complaints from existing customers, and if so, what action was taken, the spokesperson declined to comment. Even when asked to confirm whether BoV was making exceptions to this new policy, and whether this move had saved on the branches’ running costs, and whether the bank believed this was the right time to introduce this new process in the face of new competition mushrooming, the spokesperson opted not to reply. When another public relations representative for BoV was contacted, he informed this newspaper that even HSBC was adopting this policy.
But the rival bank denied any truth in this allegation.
“HSBC’s practice is to encourage customers with cheque deposits to either effect deposit through the ATM or Deposit Machine in the branch or at the Reception Desk,” a spokesperson for HSBC told Business Today. “However, this is not strictly enforced and customers who prefer to affect the deposit at the branch’s tellers are able to do so.”
Meanwhile, bank regulators Malta Financial Services Authority (MFSA), said that bank operational procedures do not require prior approval of the MFSA unless they might have implications of a regulatory nature.
“Each entity is at liberty to adopt and implement its own procedures in light of its own internal structures and operations, taking into account any legal and regulatory requirements. Prima facie, it does not appear that BoV is in breach of any rule or law,” MFSA’s Consumer Complaint Unite Deputy Director Geoffrey Bezzina told this newspaper.
“What worries us most is the effect which any new procedure may have on those bank customers who might not be in a position to use banks’ alternative services, such as internet banking or ATM,” he said. True, there are banks offering phone banking but there are people who still prefer to discuss their financial issues face-to-face. Changing mentalities and ingrained cultures take time. Likewise, adopting to new procedures will take some time. There are consumers - of any age - who still feel uneasy using an ATM. Over the years, banks have changed systems and procedures and customers had to adapt to them. Therefore customers should not feel ashamed or intimidated to ask their bank to show them how to use such alternative banking systems, for example.”
Bezzina’s recommendation to customers is to adapt and ask for assistance in the use of new services provided by the banks.
“For those bank customers who may be reluctant to deposit cheques in an envelope without being handed an immediate receipt (or such deposit, it may be pertinent to ask the bank to provide a deposit book,” he said. “Each time a deposit is made, the customer would fill in a deposit slip which would not only erve as a receipt but may also become useful for reconciliation purposes. Once again, the customer should not hesitate to ask the bank for advice and assistance as to its requirements.”
In many European countries, cheques have been abolished as they are considered to be an inefficient way to make payments. Indeed, the Payments Services Directive coming into force in November 2009 has explicitly mentioned so. Within this EU directive, enhanced consumer protection in respect of payment services will not extend to cheques.

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