Bank Charges

[moklet]

Why is it that now the banks are under investigation they all become in favor of removing sasswitch fees. Why couldn't they come up with that earlier

 

[bdt]

Why couldn't they come up with that earlier

Because it's the Great South African Way of our big corporations to buddy up into comfy little cabals and cozily collude to drain the consumer (read: "sheeple") of as much of their money as fast as they possibly can - after all, it's not like we ever really DO anything about it, now is it? And what with all those pesky foreigners driving the prices of coastal properties into the stratosphere, the CEOs have to find some way to stay in the game!

 

[HosstheBoss]

Ja I heard that giving up saswitch charges equates to something like R500 million rand a year of revenue for the banks lost! Don't think that’s much of a loss for them, but it will score a ton of brownie points with gullible Joe Public, Banks will be the hero’s again

And I’ve never cared for saswitch, my banks ATMs have always been accessible in my area, and easy to find elsewhere so there’s no thumbs up from my side.

 

[Boodles]

Boy, we really get ripped off for bank charges in SA.

I've had accounts in 2 other countries, and the charges we put up with here is absurd to say the least.

 

[bdt]

Inter-bank SASwitch fares (read: racketeering) is one thing, but the thing our lot do that REALLY gets up my nose is making an inter-bank EFT vanish into some nether region for 2-7days where >I< don't have it (on account of having paid it over to someone) ..and >they< don't have it either, on account of the thieving sods making off with it! For me, fixing this particular evil is a lot more important than the SASwitch ripoffs.

 

[noxibox]

Because it's the Great South African Way of our big corporations to buddy up into comfy little cabals and cozily collude to drain the consumer

Why do people always say this? It's not South African, it's good business. You always charge your customer as much as you possibly can. And when it comes to something like banking it is difficult to do anything without government intervention. Do we hide our money in a mattress rather than keep it at a bank?

You think BT wouldn't charge the UK consumer as much as Telkom and provide even worse service if they had a monopoly? Back when they did their service was absolutely horrible. Even now they haven't completed local loop unbundling so in many areas you still have to have a BT landline to get ADSL.

There was a time when British banks were absolutely appalling. Incredibly bad service and high costs.

It is going to take government intervention to sort out our banks. This is one of many instances where we see that the magical free market fails to deliver.

 

[noxibox]

Inter-bank SASwitch fares (read: racketeering) is one thing, but the thing our lot do that REALLY gets up my nose is making an inter-bank EFT vanish into some nether region for 2-7days where >I< don't have it (on account of having paid it over to someone) ..and >they< don't have it either, on account of the thieving sods making off with it! For me, fixing this particular evil is a lot more important than the SASwitch ripoffs.

Again standard banking practice all over. And there is a good technical reason why it takes that long. Today however technology has moved on and the banks could update the systems to make near instant transfers possible. But even overseas interbank transfers still take 3-4 days.

I have noted that even interbank transfers are much quicker these days. Typically they only take a day or two. And transfers within the same bank are usually instantaneous so there have been some improvements.

 

[ToxicBunny]

The Interbank transfers issue I think will always at least take a day or two to complete, its an issue of a good way to charge people money for a service, and also to earn interest on a large pool of "unassigned" money. But I for one will be glad when they get rid of SASWITCH fee's. The rest of the ridiculous banking charges also have to go, but baby steps ppl... baby steps.. this is new territory for our companies, they're having to truly think about their clients now.

 

[Syndyre]

Again standard banking practice all over. And there is a good technical reason why it takes that long.

So what is the good technical reason?

 

[bwana]

So what is the good technical reason?

Because that's how they make their money.

 

[Syndyre]

That's what I thought.

 

[kingmonty]

noxibox: running a business to make a profit is one thing. racketeering and plunging the facts into the murkiest of mud is an entirely different thing, and something South African companies do at the fullest expense of the people of this country. There is very little competition in this country, mostly the companies in every sector form a mini monopoly to ensure that they all enjoy the spoils. The competition commission in this country is a joke, and in most cases has only ruled on an extremely small proportion of cases. All the following are prime examples of how monopolistic behaviour is such a lucrative reason to be a shareholder in SA companies today. Telkom. The Cellular Networks, the various airlines, the 4 major banks, the agricultural sector, motor manufacturers (especially those manufacturing cars here - these really get my blood boiling), electronics sector, Pay Television, etc, etc, etc.

This is the major reason why a few individuals are doing very well financially while the bulk of South Africans are ****ing starving. But sure, it's all about maximising profits. That's the only reason a company even exists. Greed. And only Greed.

 

[qdada]

It is a smoke screen to an even bigger issue. The inquiry is on bank charges and what do the banks do ?

"No, dont look at our charges, here look at this *drums please* abracadabra simsala bim bank charges gone at whooping cost of ... *thumb suck please* R500 million, see we are co-operating"

It is all smoke and mirrors stuff. besides, how long do you think it will take them to raise the bank charges and recoup the R500 mil. ?

 

[bdt]

Why do people always say this? It's not South African, it's good business. You always charge your customer as much as you possibly can.

Funny, I've always understood it to be 'charge what the market will bear' which may have the same outcome as your definition but is the moral polar opposite of your stance. And no, it's NOT good business: to use a nature metaphor, it amounts to parasitic behaviour - and a parasite ultimately kills off its host, to its own detriment. Symbiosis, however, results in a mutually beneficial relationship - a Good Thing if you want longevity out of the arrangement. And yes, our Big Business Establishment(tm) has a long and lurid history of rapaciously leeching the .za consumer for all they're worth - because we're (and by that I mean those with the money to be siphoned off - a very different proposition from "the masses" that are well known to get agitated and do all manner of antisocial things to get their way) a nation of push-overs.

And when it comes to something like banking it is difficult to do anything without government intervention. Do we hide our money in a mattress rather than keep it at a bank?

Aye, but given that the "govern"ment (let's face it, they're doing a craptacular job of actually "governing") has a financial incentive (by way of taxation) to NOT upset the status quo, short of cattleprod-like intervention, they're hardly likely to stir themselves, are they? Also, what with crime in terms of bank robberies, cash-in-transit heists and (usually violent, all too often fatally) home robberies being what they are, talk about being between a rock and a hard place! I mean, on the one hand your money may be 'safer' (if being siphoned off) in the bank, but at least under your mattress you don't have to deal with bank queues!

 

[noxibox]

I've always understood it to be 'charge what the market will bear' which may have the same outcome as your definition but is the moral polar opposite of your stance.

The notion of what the market will bear is whatever you can get away with. Making big money in business is not about morals. As long as I have no competitors or my competitors all charge about the same we can keep our prices high. We have no moral obligation charge anything less than we can get out of the customer.

And no, it's NOT good business: to use a nature metaphor, it amounts to parasitic behaviour - and a parasite ultimately kills off its host, to its own detriment.

The notion of what the market will bear is whatever you can get away with.

Why not extort your customers if you get to keep the money? The worst case with banking is that one day you have to lower your prices. And in the meantime your shareholders are ecstatic. It is symbiotic. They are not wiping out their host.

The point is that these businesses have exploited their customers in all parts of the world. It takes pressure from some source to stop it. In the case of banking there is no incentive to change your ways. They have market shared amongst themselves and there is nowhere to go. Governments are very often weak and unwilling to go up against business interests. In South Africa our government also currently no fear of losing power so they really have no incentive to do anything. Maybe someone should start shooting politicians

 

[bdt]

Maybe someone should start shooting politicians

All soapbox pontificating aside, HERE is a sport I could get into!

 

[ToxicBunny]

Oh, yes...very definately this is a sport worth investigating. Poor performance on their part grants them a place in the annual politician hunt, might change the way they do their work i reckon..

 

[bdt]

Nothing like quite *literally* having one's arse on the (firing) line to make one take a deep and abiding interest in job performance ... *sigh*, such a luvverly (pipe)dream!