The Technology that Banks use can land you in trouble - Money Life

How risk-free banking process promised by technology-driven banks can create problems for you

My experience with one of the largest private banks, among the more aggressive ones that came up in the 1990s, speaks a lot about how technology can be a bane instead of a boon. I left for a trip to the US and before leaving I called on the branch official to draw some foreign exchange, as also to ensure that in case I may need it, I should be able to execute my banking transactions through internet banking, which is relatively secure and hassle free. I also made a request in the prescribed format to ensure that the One Time Password (OTP), essential for internet banking, be forwarded to my e-mail account in addition to being sent to the registered mobile number. Further as a matter of abundant precaution, I requested the official to help me on my request in case any need arises as high tech banking permits, encourages and welcomes e-mail contacts and correspondence to avoid personal interactions.

As a back-up and to avoid the title of a defaulter of credit card dues, I cleared all my credit card dues till the day of my departure as per the banks’ statement. But the happiness of hassle-free banking was short-lived and I now find that I have become a defaulter for non-payment of an insurance premium to one of the group's associate companies, as well as a tax defaulter for not filing Income Tax returns by 31st July!

The mistake I made was that I did not carry my debit card and did not sign up for the international roaming facility on my mobile phone, as these requirements were not made known to me by the branch officials. All thanks to the risk-free banking process promised by technology-driven banks.

ICICI Bank, one of the largest in India, has a system to register complaints and feedback at various levels, through internet banking, by email and personally with the relationship manager designated for all privileged customers. However, when one contacts them, the system only ensures that the customer gets standardised replies with regret couched in very polite language.

The bank responded quickly, saying that, ‘We regret that currently we do not have the process to send One Time Password (OTP) for resident customers on e-mail. For resident customers, the OTP is sent on the registered mobile number. Alternatively, we wish to inform you that you may call our 24-hour Customer Care, post authentication, they will be able to confirm to you the OTP generated for your transactions’.

The customer cannot have any complaints about the behaviour and tone (which is very polite), but definitely cannot expect any favourable response for his or her grievances. This is to be expected as machines take care of the grievances and human beings have a limited role in delivery and redress of complaints.

I have been in constant and long-winded correspondence with the Bank, since May 2014, about my inability to access to my internet banking account, and inability to transact in the account for want of the so called OTP. The bank neither bothered to understand the problem in totality, nor did it care to arrive at a workable solution. The issue of the OTP, even though cumbersome, could still be resolved and I had a small share in the blame, but without one’s debit card, the technology would not allow any transaction through internet banking and the bank has no solution or process to take care of this.

What is more shocking is that either the Bank's branch level personnel are either unaware or do not care to inform the customer, that it is essential to carry their debit card and registered mobile (obviously on international roaming) while going abroad.
All this, thanks to the risk-free banking processes offered by banks, without knowing banking in the real sense of the term and without considering a customer's needs.

Meanwhile, I came across a news report in Business Standard that the Bank has plans to introduce/ improve their services to non-resident Indian (NRI) customers.

I think it would be better for the Bank to improve its services for domestic customers first, before it attempts to introduce/ improve its services to customers outside the country. The bank has a system to receive complaints and feedback, and these can be registered at various levels, but the fact remains that the replies are standardised from all levels and the complainants receive the same stereotyped replies.

Knowledge of banking is alien to its operational level staff and the human touch and interaction cannot be expected of them. These were virtues of banking in the 1990s and earlier periods. The present staff are expected to know and refer only to some standard checklist fed into the computer. Know your customer (KYC) norms and technology have also become more of a handicap than a help for customers when it comes to switching banks. When the domestic customers undergo harassment and harrowing experiences without any possibility of getting relief, one cannot even imagine the sort of suffering the NRI customers would undergo. The top management's intentions are most likely good and laudable, but the fact remains that their intentions seldom percolate to the operational level and the ground realities are completely different and unpleasant.

Banks need to provide services based on customer needs and adopt processes built more on common sense, knowledge and human interaction wherever needed. KYC and technology are to be used only, at the most, as facilitators.

Dr.T.V.Gopalakrishnan
(This article appeared in Money Life dated 1/8/2014).