Banks should reward loyal bond clients

BANK bashing is a pastime engaged in by far too many South Africans not qualified to understand the banks’ positions.

Much of the criticism is way off the mark, says Bill Rawson, chairperson of the Rawson Property Group.

Nevertheless, there is one aspect of current bank practice that, in his view, could be improved and that is the recognition and rewarding of longstanding loyalty in clients who stay with one bank for years and years.

“There are a great many people who become bonded with their banks and entrust almost every financial activity that they are involved in to their banks.

“We have clients in the property world who, in addition to placing their business and individual cheque accounts with their banks, also have fixed deposit accounts and their credit cards, house and care insurance, life insurance, wills and estate management at the same banks.

“They also use their banks for JSE share deals and sometimes even for funding their children’s education, again on a long-term loan.

“Surely these clients deserve above-average treatment, especially when it comes to bond mortgages.

“This type of loyalty should automatically qualify them for a rate of 0.5% to 1% lower than standard bank mortgage loans and their application process should be simplified.”

At the moment, says Rawson, it does appear that the various different sections of banks are unaware of the clients’ involvement with other departments, but “streamlined bouquets” of the type he is suggesting would not be that difficult to set up.

“With the aid of a computer programme, these can be introduced and applied automatically when certain prescribed levels or conditions are met. From the estate agent’s point of view they would be very welcome, because they could help people invest in property more easily than is now the case.”