Saturday, February 25, 2012
Cyber Crimes in Banking
Phishing, Vishing and SMiShing in Cyber Crimes
Embezzlement, Forgeries, Frauds have been there for long in the banking and financial services. Scandals have taken place in large amounts and a new name 'Scam' has emerged to refer them. After introduction of Technology in Banking and Financial Services, a few more new terms have surfaced. We have heard of Identity Thefts and ATM frauds which by themselves are great puzzle when the industry is catching fast in modernisation. Then we started hearing about Phishing, Pharming (believe me, there is no spelling mistake in these two words), Hacking, Skimming, Trozan, etc. More the technological advancement more the counter-productive and perverted knowledge or research that has evolved. And now, we are reading about Vishing and SMiShing. Very interesting, na! Please click on the heading or go to Google or Wikipedia to search.
Embezzlement, Forgeries, Frauds have been there for long in the banking and financial services. Scandals have taken place in large amounts and a new name 'Scam' has emerged to refer them. After introduction of Technology in Banking and Financial Services, a few more new terms have surfaced. We have heard of Identity Thefts and ATM frauds which by themselves are great puzzle when the industry is catching fast in modernisation. Then we started hearing about Phishing, Pharming (believe me, there is no spelling mistake in these two words), Hacking, Skimming, Trozan, etc. More the technological advancement more the counter-productive and perverted knowledge or research that has evolved. And now, we are reading about Vishing and SMiShing. Very interesting, na! Please click on the heading or go to Google or Wikipedia to search.
Friday, February 24, 2012
Customer Grievances Redressal through Ombudsman
Banking Ombudsman Scheme
I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly. Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely. Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia. Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers. It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.
All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too. A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology. Consumer Protection Act and Right to Information Act have certainly made a change in customer service. Today, banking or any other system can not take its customer for granted. A critical reading of the report explains the transformation in the banking system towards extending better customer service.
I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly. Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely. Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia. Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers. It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.
All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too. A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology. Consumer Protection Act and Right to Information Act have certainly made a change in customer service. Today, banking or any other system can not take its customer for granted. A critical reading of the report explains the transformation in the banking system towards extending better customer service.
Thursday, February 23, 2012
25 Years of ATMs in India
Of late, I have been reading a lot of news on ATMs in India. Be it the number of on-site and off-site ATMs set up by different types of banks from the RBI website or distribution in different population centres like Rural, Semi Urban, Urban and Metro Cities or comparison with number of branches vs. ATMs by banks. It is very interesting to note that the first ATM in India was from HSBC Bank in 1987 which means the Indian banking industry got to celebrate Silver Jubilee year in 2012 (this year). So much of advancement also took place in these long years with a wide variety of ATMs being introduced by our banks.
Cross Selling has been taking place through ATMs in a big way. News items have been appearing about ATMs being stolen away by miscreants or innovative frauds being perpetrated by scamsters. These are the counter-productive outcomes, of course. But, it is heartening to note that as on March 31, 2011 as against 74,100 branches of all banks in the country, the number of ATMs have surpassed with a number at 74,500. Great show indeed.
Cross Selling has been taking place through ATMs in a big way. News items have been appearing about ATMs being stolen away by miscreants or innovative frauds being perpetrated by scamsters. These are the counter-productive outcomes, of course. But, it is heartening to note that as on March 31, 2011 as against 74,100 branches of all banks in the country, the number of ATMs have surpassed with a number at 74,500. Great show indeed.
Thursday, February 16, 2012
SBI Global Factors Ltd???
Factoring Services at SBI
After about two decades of existence, it is a sad development to note that the factoring subsidiary "SBI Global Factors Ltd" has accumulated losses of Rs. 125 crores and hence it may be merged with the parent. Factoring services originated in Europe centuries ago but were introduced in India only in 1991 after the Kalyanasundaram Committee recommended for the same. Even though it was envisaged to introduce four Factoring companies - sponsored by SBI in the West, PNB in the North, Allahabad Bank in the East and Canara Bank in the South, only two companies took birth ie., SBI Factors and Canbank Factors Ltd.
These companies were operating all over India, by opening branches in all potential places, some times overlapping in areas served and serving the Small and Medium Entrepreneurs in several ways besides financing against Invoices. The captioned development is a retrograde step and is discouraging for the world of SMEs in India. We have got to wait and watch for the decision of the country's largest bank now.
After about two decades of existence, it is a sad development to note that the factoring subsidiary "SBI Global Factors Ltd" has accumulated losses of Rs. 125 crores and hence it may be merged with the parent. Factoring services originated in Europe centuries ago but were introduced in India only in 1991 after the Kalyanasundaram Committee recommended for the same. Even though it was envisaged to introduce four Factoring companies - sponsored by SBI in the West, PNB in the North, Allahabad Bank in the East and Canara Bank in the South, only two companies took birth ie., SBI Factors and Canbank Factors Ltd.
These companies were operating all over India, by opening branches in all potential places, some times overlapping in areas served and serving the Small and Medium Entrepreneurs in several ways besides financing against Invoices. The captioned development is a retrograde step and is discouraging for the world of SMEs in India. We have got to wait and watch for the decision of the country's largest bank now.
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