Issue link: https://maltatoday.uberflip.com/i/1449831
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 H SBC Bank's decision last year to introduce contactless cards was more than welcome, albeit three years late when compared to other retail banks operating in Malta. e bank started distributing new contactless cards a couple of months ago in preparation for the changeover that had to happen between the 5 and 7 February. Clients thought the protracted pro- cess adopted by the bank was to ensure a seamless transition to the new system when this was switched on in February 2022. However, the changeover has been anything but seamless, leaving many clients, including businesses, unable to access their funds, make payments or carry out transactions. To top it all, not all cards have been replaced with contactless versions, leav- ing customers unable to make use of the new system. From a global bank that has been harp- ing on its shift towards a digital environ- ment, while shutting down branches, one would have expected much better. It is already ridiculous that HSBC only embraced contactless cards now, given that these have been a mainstay at Bank of Valletta, APS and BNF before the pandemic struck in 2020. Bungling the changeover just made matters worse, not only for HSBC but also for the banking sector as a whole. Complaints against banks have been mounting over the past few years from various quarters on the charges and fees levied for services offered. From credit card fees to minimum balance charges, from cheque encash- ment charges to limits on the minimum amounts that can be withdrawn from branches, retail banks have been batter- ing customers. e justification has always been that they are adhering to more onerous an- ti-money laundering rules, modernis- ing services and adapting to customer trends by emphasising online systems. While AML obligations have increased as a result of global arrangements in- tended to combat financial crime, Mal- tese banks have taken the matter to the extreme. It makes little sense to treat a pension- er whose only income is his pension the same way as a businessperson with mul- tiple sources of income. And even if banks feel that strict rules should be applied across the board irre- spective of who the client is, they should ensure processes are as seamless as pos- sible for everyone. Retail banks are today competing with online based payment apps that are not only easy to use but also make it cus- tomer-friendly to provide the necessary documentation required for regulatory purposes. Online and mobile app offerings by domestic retail banks have to improve and become more client-friendly. Within this complex context, greylis- ting of Malta by the Financial Action Task Force has done little to help the situation. Although the tangible impact of grey- listing on the economy has been negli- gible to date, it has put strain on the fi- nancial services sector, including banks. More questions are asked when Maltese firms deal with foreign jurisdictions and this only serves to complicate matters. Banks themselves face problems from enhanced scrutiny but it is unfair for them to shift this additional burden on their customers. is scenario is the pretext for the widespread backlash HSBC has faced over its botched contactless changeover. It was the proverbial straw that broke the camel's back. An apology to customers and a gesture of goodwill would not be amiss. The straw that broke the camel's back 10.2.2022