Full Service

By LAURENCE CORLEY

TEus may be the era of the specialist, but a notable feature of trading in this day is the alacrity with which one shopkeeper dabbles in the trade of another. A butcher sells lamb chops, so it is logical that he should sell jars of mint

sauce. And from this it is only one step to tins of peas. The greengrocer, anxious to sell beans all the year round, goes in for frozen vegetables, and with the equipment already installed it is difficult to resist the temptation to stock fried fish as well as chips. Under the general title of 'full banking services,' banks, too, have widened their activities outside the strict confines of what might be called pure banking—in other words, the acceptance of money for safe keeping, lend- ing and providing a cash transfer system. But is there still further scope? And are there new classes of customers who will expect a wider range of ancillary services?

During the last five years the clearing banks in England and Wales have increased the num- ber of their branches by some 800 and there is little sign of any slackening in the pace. Not only have new town areas been provided with banks, for the average urban dweller seems to expect to find a bank within a quarter of a mile of his home, but there has been a considerable addi- tion both to the number and the size of branches in established communities. Also, banking has been taken to the customer by the opening of offices inside hospitals, at air terminals and other places where there are large concentrations of workers unable to get at other banking offices during normal hours of business. At these branches banking facilities well beyond the straightforward acceptance of credits and cash- ing of cheques are available.

Further branches will undoubtedly be opened in both old and new industrial areas. This does not mean, however, that the banks will show much enthusiasm in providing purely wage- paying or cheque-cashing facilities within fac- tory or other establishments. The efforts which have been made to lure banks into doing this have frequently been little more than thinly dis- guised attempts to pass to the banks the security risks involved in the transport of wages cash and would do little to further banking habits.

Always under consideration and discussion is the vexed question of banking hours. That they are inconveniently short for many of the work- ing population is unquestionably true, though any inconvenience is partially mitigated by the opening of new branches in suburban and work- ing areas. And, of course, banks are open for business on Saturday mornings. If and when bank staffs share the privileges of a five-day week now enjoyed by the majority oCtheir cleri- cal and industrial opposite numbers, then even harder thinking will have to be done on this subject.

With a movement towards a wider distribu- tion of share holdings, the role of the banks in

the security markets can become even more im-

portant. The efforts of the Stock Exchange to bring its services to the general run of the public

have been rather lukewarm. It is extremely un- likely that one pools winner in twenty knows the name of a single stockbroking firm, and even if he does would feel inclined to ask its opinion and to use its services. The future of intelligent and more general investment in industry there- fore depends very much on the banks. The bank manager is accessible and approachable. He pro- vides art easy link between the new and small investor and the world of stocks and shares, and the ritual of investment is simpler to follow with the help of a bank security clerk. It is to be hoped, therefore, that the banks will shake off their inhibitions and bring their very valuable contribution in this field to the notice of many who as yet do not know their way about the paths of the stock markets. The advertisements of the Stock Exchange, with its illustrations of waste paper on the floor of the 'House' at the end of the day, did not probably do much to widen the knowledge of the uninformed public.

Ever-increasing numbers of people are going abroad for holidays and it is by providing them with foreign currency and travellers' cheques that the banks are making their greatest number of contacts amongst those who have hitherto not been inside their doors. To enjoy this par- ticular banking service it is not normally neces- sary to be an account-holder, and this first intro- duction to banking is frequently the means of establishing a permanent association.

Credit transfers are a slow developer. The ad- vocates' main platform was that a need existed for a cheap monetary transfer system in addi- tion to the cheque. By commendable co-operation between rivals, the banks have done just this. They have even gone a considerable stage fur- ther by, for the first time, jointly advertising a common service. However, whilst the utility authorities and the GPO, with telephone ac- counts, do issue credit transfer forms with their statements, there has been little sign of commer- cial firms encouraging this method of payment by even doing so little as printing the names of their bankers on invoices or statements. So far, therefore, there has not been the surge of new people to bank counters that might have been expected, though it will undoubtedly increase.

Trustee, income tax and investment manage- ment are growing activities. By using them cus- tomers can obtain considerable advice and assistance and often avoid the tiresome necessity of writing a number of letters containing dupli- cated information to different professional ad- visers.

At the moment there does not seem to be a great likelihood that many more services will be added to the impressive list of those already provided by the banks. In fact, many customers are still not fully. aware of the full resources of assistance and know-how they can call on already.

Whether the banks can attract more business by providing a utility type of account has not yet, been resolved. One bank is running a set- charge 'no frills' account on which cheques may be drawn but no other services used. It fills a need, of course, but it seems a pity for the sake of a few pence to be denied the help and privileges the institution already has on tap. After all, no one is willingly a five-day member of a golf club when he would enjoy an occasional game at the weekend.

The majority of new bank customers are young and they are the most likely to require much of the advice and assistance which goes with a normal current account. The future and expan- sion of any institution depends on the continual introduction of the next generation, so quite rightly the banks are directing much of their efforts towards them and in particular to those who have not inherited any banking experience. New classes of customers may well emerge with different requirements and there is little doubt, in this highly competitive field, that the banks will make strenuous efforts to satisfy them.