Tuesday, August 27, 2013

Being street smart is the best option to handle your finance

Today I was reminded that being street smart is best option in handling your finances.A caller phoned a radio station to warn people who have dual accounts(owning foreign bank accounts) where your mail gets intercepted and banking details used literally clean your account.Based on number of callers who also related their stories and experiences,I realised that they have commited the cardinal sin...which is TRUSTING their bankers with their hard earned funds.

DONT get me wrong,our Banks are regarded as one of the best in the world,with rock solid risk management and regulatorary framework. But what they overlooked is the role of human element in the transaction process. In terms ofbanking risk,see SABRIC(SOUTH AFRICAN BANKING RISK COUNCIL) website about scams and how to protect yourself.But what is missing is information and help on mitigating the human element.

People forget that most(over 50%) of South african banks staff  dont have post matric qualifications,worse dont have measured,scientific skills set in duties/post they are doing.There is unspoken tradition of seniority,meaning old staff have preference especially in supervisory positions.Most of these staff dont even have matric(remember in 70s when white male were "busy" in border wars, there was shortage of staff across banks as a result white female without matric,were accepted into job market and over years gained experience and made themselves irreplacable.It is not uncommon to find in a department,the supervisor has std 8(grade 10) and his/her staff are more educated and or qualified that their immediate bosses.

The last concern with bank staff is that due strick rules applied by banks  access to internet is limited to senior staff,resulting in most staff,especially senior staff not be tech savvy as they can only operate the in-house systems.This makes them unaware of new scams,tips and trends as they depend on "cautionary advises" circulars and or staff meetings updates.e best way to ensure that you keepnyour money safely in the bank.i advice the following
1)controll who has access to your account including joint accounts.if one person/partner has signing powers in your account,make sure sms alert goes into YOUR mobile number only
2)Remeber the Waiver and Indemnity form for fax and electronic messages only protects the bank not you.create a built in system to ensure your email/fax are not intercepted.if youuse fax,also phone your bank to confirm same.

***you wil note no stats or examples provided,,yes it makes you think,hey