Bank Charges

[Graeme]

Bank Charges - the "Aha!" Factor

A while ago, part of our vocabulary included the "Aha!" factor; used, for example, when some calculated practice of maximising profits by giving the locked-in client a screwing was believed to exist.

An article in the latest issue of FINWEEK presenting the results of a rather fascinating forensic investigation into bank charges reminded me of this. It turns out that there is a Dallas-based consultancy called Carreker which entered the South African market about five years ago, offering its services to the Big Four banks in helping them to raise their "non-interest revenue". According to FINWEEK, Carreker's website states, in consultants' gobbledegook, "Carreker's Revenue Enhancement practice helps financial institutions meet their revenue and customer relationship objectives through a carefully staged sequence of emerging best practice opportunities. Tailored to the unique needs of your organisation, these opportunities are timed at a cadence to build long-term, sustained benefits and growth." All of the S.A. Big Four admit to having had various degrees of engagement with Carreker.

Says a former banker; "They (Carreker) go around the world looking at global best practice and when they enter new territories basically advise new clients on fees they hadn't previously considered." Best practice!

"Aha!"