The story is that my business had fixed deposit that I wanted to withdraw.
I tried to initiate the withdrawal from the app but I could not do so. I thought we are really digital nowadays but common transactions like this can only be done offline.
And why did we have fixed deposit? Because it was required to secure credit instalment plans for our customers.
It was to serve as a collateral in case we run off with the money and not deliver the service to the customers. Fair enough.
But since Covid happened. We no longer use that facility and we have cancelled it. But the fixed deposit remained.
Even as interest rates were going up, the bank paid 0% interest on the fixed deposit the latest I checked. It was also rolled over automatically. I was even told that it may incurred penalty if I closed it prematurely. Luckily it didn’t else I would have made a fuss.
Now this is unfair. It is practically locking up the money and we can’t terminate the fixed deposit account easily.
I was told that I needed to visit a branch in order to close it.
The business is brisk at the branches. I gave up at the first branch I visited and tried another in hope that the queue was shorter. Still, I waited for two hours.
I remember when I open the facility I have a banker serving me. Setting up an appointment so I don’t need to wait. The forms were even prepared for me. I just need to understand the terms and sign.
The difference in experience before and after was huge.
Granted. The banker probably gets a commission for closing the deal but not when the customer cancels it.
And no bank wants to lose deposits easily and hence there is really no incentive to make it convenient for customers to withdraw.
But customers will do it eventually. The bank still loses the deposit and leave a bad customer experience. No one wins.
For those newly licensed digital banks, any unhappiness with current banking services becomes an opportunity.
So here is one. Fixed deposit withdrawal – make it convenient. Another would be the credit card machines with instalment plans. Don’t make it onerous for businesses in terms of the amount of collateral and fees.
Anyway there are fintech companies providing the alternative solutions. We have already switched. Give us something better and we will switch again.
