This write up is actually a lamentation on how banking values and rules have modified for the more serious because the entry of recent technology banks to the trade within the late Nineteen Eighties and early Nineteen Nineties, when the regime of Basic Ibrahim Babangida liberalised banking enterprise. He indiscriminately issued banking licenses, which is a privilege not a proper to those that later turned out to be cowboy bankers, conducting banking enterprise with out adhering to conventional rules and values for which bankers are identified worldwide.
There was a time banks and bankers have been synanimous with conservatism and integrity. Like legal professionals of previous, you hardly see financial institution managers in public or social gatherings. You’ll be able to solely catch them in church buildings or mosques the place they go to worship the Almighty God, the creator of heaven and earth. Bankers have been ranked pari pasu with monks, pastors, imams, in development of godliness and integrity. You see bankers listed as individuals eligible to attest to the character and suitability of an applicant for employment or potential pupil in search of admission to secondary or tertiary Establishment.
It was all these societal revered recognition of bankers that lured me into changing into a blanker, although I learn Accountancy on the College of Nigeria Enugu Campus, driving me away from my ambition to change into a famend Chartered Accountant.
The reader can think about how excited I used to be, when as an NYSC member serving in previous Borno State, I used to be posted to the Central Financial institution of Nigeria, Maiduguri department in August 1978 for my main project. I used to be excited as a result of I used to be heading in the right direction, professionally talking as a result of from what we discovered within the College, financial institution lending begins the place Accounting ends. Sadly, banking practices and values at present is radically totally different from what it was in time previous. Not anymore.
Know-how has turned banking to one thing else, transferring banking away from what it was. Lack of sufficient enabling banking legislation in an period of know-how and digital banking compounded the matter by attracting all types of individuals to the in any other case noble occupation. In contrast to earlier than, you don’t want to coach for one yr, as I did in United Financial institution for Africa Ltd, from August 1979 to July 1980 earlier than being confirmed an officer. All you want now to change into a banker is a level in any self-discipline and also you simply know find out how to punch pc and also you change into a financial institution officer with little or no coaching.
Issues have change into so dangerous that one in every of my purchasers out of irritating expertise with a financial institution put it this fashion, “bankers are actually thieves and thieves are bankers” I attempted to defend my occupation however he shouted “how can I lose N10 Million from my account by way of Web banking channel switch when no Web banking software (app) is linked to my account. I’ve solely my ATM card for withdrawals and by no means used USSD to make any switch?” That meant fraud has been dedicated in his account since he didn’t authorise the transaction.
This write up is a clarion name to banks and financial institution staff to return to the nice previous days when honesty and integrity have been the premise of conducting banking enterprise. Integrity was ranked far above top notch honours or second class higher division from the College.
That brings us again to lack of honesty and integrity in service supply by banks as establishments. We will focus on first, lack of integrity by banks in obeying regulatory directives in rendering banking providers after which lack of integrity by banks in personnel administration issues.
It’s certainly a disgrace that the Central Financial institution of Nigeria (CBN) needed to wield the massive stick and advantageous some banks the sum of N150 million every for failure to load their ATMs with money in the course of the 2024 festive season. It’s shameful as a result of it uncovered banks to lack of integrity to not honour it’s promise of rendering uninterrupted money fee and withdrawal providers to their clients.
As a regulator, the advantageous is so as. What is just not so as is for the CBN to be the beneficiary of the advantageous as a result of they have been neither inconvenienced nor did they endure financial loss in the course of the interval.
The right factor to do is for the CBN to order banks to pay financial compensation to their clients for every day they have been in default. That might have been an equitable intervention the financial institution clients reserve the best to sue the banks for breach of contract which might have resulted to damages working into billions of Naira in damages. That motion might destabilise the banking system.
Secondly, in contrast to occasions of previous, when banking was regulated, there appears to be whole lack of integrity and self-discipline by banks in personnel administration and administration within the new period, which is transferring backwards. At the moment, there was self-discipline in personnel administration and banks have been higher organised.
Each worker of the financial institution, from high to backside was captured within the payroll of the financial institution. All workers throughout board have been entitled to medical allowance, paid depart, and bonus allowance. Staff have been free to hitch banking sector labour unions, and interact in collective bargaining with financial institution administration on wage and welfare evaluation every now and then.
With the appearance of de-regulated banking in late Nineteen Eighties to the current, this personnel coverage mannequin has been fully deserted. Banks now prohibit staff from becoming a member of labour unions. All workers are not on the payroll of banks. Banks now have contract workers, outsourcing some departments like safety, secretary, drivers and many others to personnel administration consulting corporations.
In response to them, they wish to give attention to the core enterprise of the financial institution. That is the place they received it fully flawed. Banking enterprise is info enterprise. That’s the reason financial institution staff swear to an oath of secrecy on engagement. Data accessible to anyone within the banking worth chain has cash worth. Divulging such info to unauthorised individuals can result in losses to banks.
With the apply of contract workers with no annual depart, no medical services, no coaching alternatives, banks have change into slave drivers not employers of labour. Banks wish to save value, proper?” Calculate the quantity of fraud happening within the banking system because the period of contract staffing and setting of unrealistic deposit and revenue goal for workers. As soon as they’ll’t meet the goal, they commit fraud, which they name “I stop cash” in one of many banks.
It pains me that at any time when I’m going over-the-counter to transact enterprise in any financial institution, I change into a instructor. Many financial institution workers are empty headed, missing in information of primary banking rules. Lots of them can’t appraise a lending software correctly and also you see them reject purposes that are bankable and would have been accredited. It is because banks expose their workers to restricted coaching for efficient service supply.
From media studies, financial institution fraud is on the rise as a result of the contract workers should not loyal to the financial institution. Why ought to they be loyal to the financial institution when they aren’t on the financial institution’s payroll and don’t have any contract of employment with the financial institution. They obtain far much less remuneration than banks pay personnel contractors and have no hope for promotion to a better rank.
The CBN ought to please intervene and name banks to order. The regulator ought to difficulty a round scrapping contract staffing in banks. It is vitally harmful to entrust cash or cash devices to somebody who is just not loyal to the financial institution. Contract staffing is just not appropriate to banks in contrast to manufacturing and oil and fuel firms. What the CBN de-regulated is international trade market not personnel administration issues.
The CBN has the statutory energy to take care of a sound monetary system. Sound banking system is just not pushed by making financial coverage solely. There shall be no sound banking system when the personnel coverage of banks result in disgruntled and dis-satisfied that commit fraud once in a while.
A return to previous mannequin of personnel coverage the place all financial institution workers are on the financial institution payroll is pressing as a result of personnel administration was not de-regulated. Lack of integrity in personnel administration has led to worsening underemployment and financial institution fraud which isn’t the target of banking regulation and governance.
As soon as once more this write up is a clarion name on legislative arm of presidency to help the banking trade by enacting a legislation prohibiting outsourcing of workers within the banking trade which is without doubt one of the largest employers of labour.
The banks are declaring outrageous revenue yearly and may maintain personnel value of placing all staff on their pay roll with compensation packages that’s commensurate with the efficiency of the trade.
Enyinnaya, Creator and Fellow, Chartered Institute of Bankers could be reached by way of:[email protected]
