or banks excel in being opaque                                                                        

                                                   I have been a long standing customer of a big 5 bank in Canada. Today, I transferred money to my daughter's account with the same bank. It is 5 hours now; the balance in my account is immediately reduced. My daughter's account is yet to be credited. Where is the money now? I visit the bank to make enquiries. The bank manager avoids the question, shows annoyance when I persist. That is excellence in being opaque. This bank, numero uno in customer service, has no credibility in my eyes. As I sit back and muse, I start seeing many such deception points where banks make money surreptitiously.  

Deception point 1: Banks lend the 'free money' in such transfer transaction where there is time lag between the two legs of transaction, in the interbank market. There is no cost of funds. Any return is income, easy money Eh?

Deception point 2: How many days does it take to get money when a check drawn on a different bank in the same city is deposited into your account? 3 to 5 days. The bank does exactly the same as deception point 1.

Deception point 3:  I deposited a dollar draft bought at Singapore in Canada. The bank responded saying that they have not yet received cover funds. It will take 7 days for payment. A bank draft by definition is payable on demand and is for value received.  I can only protest. The bank is the bull dozer. The manager is the decision maker whose bonus depends on zero escalations that please his bosses. It is a double whammy. I pay for the draft and wait for 7 days to get my money.

Deception point 4: A high balance in your account will give you some small benefits. Breach it once, there goes $25. Point out that in the last few months you had twice the minimum amount as average balance, the smart teller will focus only on the breach.

The regulators turn a blind eye to such stealth activities. Two recent changes in my neighbouring country have given me some hope; the end to default ‘courtesy overdraft’ and the ‘durbin amendment’.  If the banks move away from the archaic legacy systems to real time core banking systems there will be more transparency and less exploitation. Banks can then truly demonstrate customer service, earn respect and credibility as a responsible member of a society. That will define customer centricity.