Sunday, April 6, 2014

Efficient DBS-Paypal but the hidden cost

As Gmail informed me, thirteen hours ago on a Saturday evening I used my DBS account to top up Paypal. The money is now in and I wasn't expecting this to happen until late Monday or Tuesday. I could never get this efficiency topping up with USD but now I can't do that even if I wanted to since I had been forced by Citi to close the account. They offered me to open another one but I decided to use a locally based USD account instead. Post financial crisis Citi is in retrenching mode and it had failed the Fed test as feared. Why move to another part of the forest only to have to evacuate again?

Unlike in the past DBS in recent years have finally understood that good retail service delivery is an overall winner because they become the preferred liquidity reservoir driving their cost of funds to the lowest. In other words it is actually expensive for their customers but they stick with it out of convenience especially when they can't pin a number to the cost. The civil service do the same to us and that is why there are severe limits to their transparency! They need new values and habits and as it adjust to the new reality, it must have discovered its options are shrinking and performance affected. They need new tools and the first piece they are acquiring is how to give sincere apologies.

No comments:

Post a Comment