OCBC very strict with late charges?

[SantyBalls]

yea. but milewage may vary

i mean tbh, it's totally ok if one might prefer to bank with certain banks to suit their lifestyle needs.

but at the end of the day, it is still individual's responsibility to make payment on time.

Yup. First responsibility is bank is expected to have the necessary tools to help customers make timely payments

Aft that then is customer responsibility to remember to pay

 

[reddevil0728]

Yup. First responsibility is bank is expected to have the necessary tools to help customers make timely payments

they done their part by providing for GIRO.

Aft that then is customer responsibility to remember to pay

at the end of the day it is still customer that has to be responsible. u spend u pay

 

[anddrool]

It is the card holder responsibility to remember credit card due date and make payments.

Just adopt a habit. Pay all your bills on 1st of each month or a date that is within all credit cards billing cycle. Don't have to remember billing cycle. Just have to make payment on that day of each month.

Simple solution. Don't need to depend on anybody. Just pure self discipline.

 

[fr33d0m]

hahahaha yeah probably if you are the chao kar type with high risk of default they will want to exit you. But if you are late, you guai guai pay your late charges and interest, they will still love you and even love you more than those who just use and pay promptly. They don't earn much from prompt payees vs revolvers etc

But for OCBC their system and process really CMI. This is my first credit card with OCBC and from the start i don;t have a good experience with them. Previously i have OCBC personal & Joint account that was close >10 years back. When i applied for the credit card 1.5 years back to be used for overseas, they used my previous handphone number in their system (>10 years ago) instead of the one on application form/Singpass. Almost fainted when the CSO say he will send me a card pin mailer for me to change my contact number instead of checking the application form and helping me to update it.

you are wrong about late fee or the ones paying late fee are good customers. They are bad customers. The banks primarily earn their fees on credit card via merchants and they sell most if not all their credit card balance to other investors. Any late payment or non-payment is very bad to sell to investors.

What the banks like the most is customers spending money and paying in-time. These are far better than late fees.

 

[fr33d0m]

Nowadays it seems that banks are trying to increase their user base. Even those previously not paying referral fees for credit card acquisition are doing so now (e.g. OCBC, CIMB, UOB, DBS)

There are some previous research that shows it cost the bank 5-7x more in effort/cost in a acquiring a new customer vs retaining an existing customer. So different bank probably have different strategy on how to acquire or matrix to retain customers (e.g. revenue earn, overall relationship....). Why does the bank need a big user base you might ask, even if the customer do not use the credit card often:

1. Attract Merchants to run promo: A bank will 1m cards will attract a merchant to do more promo, throw in more freebies vs one with 200k cards
2. Run Utilization or Marketing Campaign: Run spend promo, balance transfer (BT) promo and if the offer is attractive enough it might attract the customers to use (i sign up close to 6 figure Maybank 0% 1 year BT with one time processing fee of 0.99% and use it to arbitrage for bank deposit)

When i tried to cancel my existing credit card with a leading foreign bank in SG, they offer to waive my annual fee and also give me S$150 credit to retain my card for 1 more year - which i seriously was considering to retain. Other banks just offer to waive off the annual fee, with 1 or 2 throwing some small vouchers $30 to $50.

Some banks fight for scraps. Some banks are more quality focused. every bank has its own strategy working for themselves. When customers feel that a bank has a bad strategy but the bank does not change, the customer need re-think as the banks are so profit-driven that they must have a very good reason not to do what others are doing.

The choices are mutual.

 

[LexusIS]

you are wrong about late fee or the ones paying late fee are good customers. They are bad customers. The banks primarily earn their fees on credit card via merchants and they sell most if not all their credit card balance to other investors. Any late payment or non-payment is very bad to sell to investors.

What the banks like the most is customers spending money and paying in-time. These are far better than late fees.

From my understanding the top 3 income for credit card Portfolio (varies by bank)
1) Revolving Interest (up to 30% pa) - the banks in SG hold the credit card balance on their bank book..... it is the most lucrative income for them. They won't sell it
2) Fee Income

1. Interchange for spending at merchant (depending on card type and merchant type (MCC)- average 1.6%)
2. Annual Fees/Late Fees (Varies)
3. Other fees

3) FX rates on foreign currency transactions (up to 3.8%)


Feel free to refer to this article..... there are more in the internet
https://www.valuepenguin.com/how-do...ary way that banks,are charged to the account.

 

[fr33d0m]

From my understanding the top 3 income for credit card Portfolio (varies by bank)
1) Revolving Interest (up to 30% pa) - the banks in SG hold the credit card balance on their bank book..... it is the most lucrative income for them. They won't sell it
2) Fee Income

1. Interchange for spending at merchant (depending on card type and merchant type (MCC)- average 1.6%)
2. Annual Fees/Late Fees (Varies)
3. Other fees

3) FX rates on foreign currency transactions (up to 3.8%)


Feel free to refer to this article..... there are more in the internet
https://www.valuepenguin.com/how-do...ary way that banks,are charged to the account.

I am pretty sure that 1 is not true at the moment. revolving balance is getting worse and worse for capital and regulation, not mentioning revolving balance is very low in Singapore context. Maybe in the US, revolving balance is larger. Barclays US is primary credit card issuers, not so much a consumer bank. It earns billions via interchange fee. I am not too sure about JPM, which has a large consumer operation, probably credit card is not a large business within consumer banking, either.

 

[SantyBalls]

they done their part by providing for GIRO.

at the end of the day it is still customer that has to be responsible. u spend u pay

21st century liao. It's bank responsibility to provide modern features to assist customer in paying.

You wanna jjww about giro, go back to the 1990s or something

 

[reddevil0728]

21st century liao. It's bank responsibility to provide modern features to assist customer in paying.

You wanna jjww about giro, go back to the 1990s or something

Well, the point is no amount of assistance matters if the customer doesn't taken individual responsibility to make payment on time

that's the most important point

If the customer has done whatever it takes to make payment on time, but the bank system is done for whatever reason, then is not the customer fault.

so lets not explain away self entitlement and excuses

 

[SantyBalls]

Well, the point is no amount of assistance matters if the customer doesn't taken individual responsibility to make payment on time

that's the most important point

If the customer has done whatever it takes to make payment on time, but the bank system is done for whatever reason, then is not the customer fault.

so lets not explain away self entitlement and excuses

Nope. It's the bank responsibility first and forth most to provide features consistent with the modern world. Only have they done so can they say they have done their due diligence and it's the customer's negligence for forgetting to pay their bills timely.

 

[reddevil0728]

Nope. It's the bank responsibility first and forth most to provide features consistent with the modern world. Only have they done so can they say they have done their due diligence and it's the customer's negligence for forgetting to pay their bills timely.

You see you are missing the point here.

The banks can provide everything necessary to help the customer make payment on time.

But if the customer still does not take individual responsibility to make payment, whatever assistance provided is of no use.

At the end of the day it is still the individual responsibility, which is lacking in this world.

 

[anddrool]

People who need notification/reminder to pay credit bill. It is simple.
Take out phone. Go to calendar, Create a task/activity with recurring every month.

There you go. Your personal credit card bill notification.
Don't have to depend on anybody.

 

[SantyBalls]

You see you are missing the point here.

The banks can provide everything necessary to help the customer make payment on time.

But if the customer still does not take individual responsibility to make payment, whatever assistance provided is of no use.

At the end of the day it is still the individual responsibility, which is lacking in this world.

Yup. It's essemtial that bank need to provide everything necessary to help customer make payment ontime. Then and only then can they say they done their due diligence.

For example, dbs only provides email notifications. All other banks provide sms reminders.
So if customer forgets to pay, it's bank more at fault

 

[reddevil0728]

Yup. It's essemtial that bank need to provide everything necessary to help customer make payment ontime. Then and only then can they say they done their due diligence.

For example, dbs only provides email notifications. All other banks provide sms reminders.
So if customer forgets to pay, it's bank more at fault

As per what the person mentioned above, everybody can rely on themselves they don't have to rely on others.

What if one day all other banks don't provide SMS reminders to cut cost?

I note that you feel that you are entitled to be reminded, but sadly the world isn't like that.

but of course you are entitled to take your business elsewhere till the day the music stops.

 

[SantyBalls]

As per what the person mentioned above, everybody can rely on themselves they don't have to rely on others.

What if one day all other banks don't provide SMS reminders to cut cost?

I note that you feel that you are entitled to be reminded, but sadly the world isn't like that.

but of course you are entitled to take your business elsewhere till the day the music stops.

That is what a customer can do.

I am talking about banks not doing their due diligence hence it's also bank's fault customer didnt pay

Hope that clarifies.

 

[Imhthc]

People who need notification/reminder to pay credit bill. It is simple.
Take out phone. Go to calendar, Create a task/activity with recurring every month.

There you go. Your personal credit card bill notification.
Don't have to depend on anybody.

For me, I do post dated payments for different cards via my internet banking from my saving acct
whenever I received a notification that a statement is ready. That’s alternative to the filling out the calendar. I learnt my previous lesson and nowadays I ensure that the post dated is 2 working days before the statement due date.

 

[Ark Law]

I am talking about banks not doing their due diligence hence it's also bank's fault customer didnt pay

Or are they?

Banks earn a pretty chunk from late fees and interest charges. At the end of the day, it's just risk appetite choices for the bank.

Lower risk, lower profits = diligent consumers who pay on time in full, and with near zero probability of default
Higher risk, higher profits = uneducated consumers who rollover balances, pay late, and with higher probability of default

 

[fr33d0m]

Which banks begged you, may I ask? How did they beg?

next time, please invite us to watch.

 

[SantyBalls]

Which banks begged you, may I ask? How did they beg?

next time, please invite us to watch.

I believe almost every bank at some point.

you never see promoters in every crowded areas? mall, mrt station, walkways, etc?

 

[fr33d0m]

I believe almost every bank at some point.

you never see promoters in every crowded areas? mall, mrt station, walkways, etc?

people beg, I yet see a bank begs for retail business.