Why Do I Need A Bank BRANCH?

Oblivion

Why is it that in this computer age of centralised accounting, my bank (HSBC, but I'm sure it applies to others) still insists that my account be identified with a specific bank branch?

I can deposit money at any branch I like ... I can withdraw money at any branch I like as well as numerous ATMs around the country. I access my online bank accounts on their central computer system whenever I want with a simple user ID and password.

So why does the bank insist on identifying me with one branch by issuing me with a book of cheques that has a branch sort code and the address of 'my' branch on each cheque? What is the point?

Surely, all I need is a unique account number to identify me in the central system, and surely any branch I happen to wander into should be capable of dealing with any query I might have because all my info is on a central computer anyway.

Anyone know why we still get tagged with a sort code and a branch? :huh:

Dave.

FatAndy

I worked for a major High Street bank about ten years ago and we used to get people who had moved into the area asking to transfer their accounts to our branch. Usually they were told there wasn't any need to do this. The only real 'benefit' was that if you wanted to cash a cheque in your own branch you didn't need to produce a cheque guarantee card whereas you did if you wanted to cash a cheque in any other branch. I suppose the idea was that we were more likely to know our own customers which was partly the case, you did get to know the regulars over time. These days I can't imagine too many people still cash cheques so I don't suppose this is as relevent.

One thing that the bank that I worked in did was to have a league table for branches in the area. Basically the branch scored so many points for selling a mortgage, loan, car insurance, etc. This meant that there was competition between the branches which seemed counter-productive to me. I remember one case were some people had come on holiday and loved the area so much they decided to buy a caravan. They came into our branch to apply for a loan and this lead a 'fight' between our branch and the branch which held their account (and had to approve the loan) over who got the points. I think in the end they got split 50:50.

Perhaps the reason why we still get assigned to a branch is to encourage the people working in that branch to sell as many products as possible to get to the top of their local league table?

onlypaddy

your sort code is part of the information that defines who you are on their system, as well as being used for direct debits etc. removing them would be a massive job, and would also remove a layer of protection. its another 6 numbers that fraudsters may need at some point....

so while sticking to service in a particular branch is not essential any more, the presence of such information is

Oblivion

onlypaddy wrote: »

your sort code is part of the information that defines who you are on their system, as well as being used for direct debits etc. removing them would be a massive job, and would also remove a layer of protection. its another 6 numbers that fraudsters may need at some point....

so while sticking to service in a particular branch is not essential any more, the presence of such information is

But then, every time I issue someone with one of my cheques it has my sort code clearly 'advertised' on it, along with my bank account number, my branch address, my account name, and my specimen signature :eek:

Hardly cutting edge security is it?

Dave.

onlypaddy

ok, point taken. But then you choose who you give cheques to...

What's the big deal anyway?

Surely, all I need is a unique account number to identify me in the central system, and surely any branch I happen to wander into should be capable of dealing with any query I might have because all my info is on a central computer anyway.

You have this - a sort code is part of it. I've heard of people having the same account number before, but the sort code is always different. Other than that...any branch you happen to wander into should have the ability of dealing with any query you may have, as all your data is stored in a central system. couldn't have put it better!

Oblivion

FatAndy wrote: »

Perhaps the reason why we still get assigned to a branch is to encourage the people working in that branch to sell as many products as possible to get to the top of their local league table?

I suspect you have hit the nail on the head there Andy.

I must count as one of their abject 'failures' then, because I never respond to any of their stupid marketeering. All I ever want is a straightforward banking service to receive my income, protect my money, and allow me to make payments ... end of. I think the message must have finally filtered through their borg like intelligence, because 'my branch' seem to have given up cold calling me.

Dave.

Paul_Herring

The sort code for my LTSB bank account is currently about 350 miles away from where I live.

Even before I moved, the sort code still resolved to 15 miles away, while the actual branch I opened it in was about 20 yards down the street from where I lived.

Does it really matter which sort code you get? Is it really an issue?

gilligansyle

My son has this query too. He banks with HSBC and has done since the account was opened at school as one of those promotion things they do. He left school 6 years ago and when he tried to change it he was told it wasn't necessary so didn't.
He has never been in the branch and does all his banking online, but recently when there was suspected fraud on his card and it was blocked he had to go to the branch his account was associated with, which was the one near his school. He couldn't just go to any branch. He has also opened an account online and they have 'attached' it to the original branch.
Agree that for most things these days it doesn't matter as all branches have access to all your information, but some of it is to do with sales.

Blackpool_Saver

I do all my banking online, when I am asked for my branch I always put the London office

Oblivion

Paul_Herring wrote: »

Does it really matter which sort code you get? Is it really an issue?

More an unnecessary irrelevance than an issue. Perhaps it's just my tidy methodical mind, but I don't like being labelled with yet another number when it makes no logical sense.

Dave.

willo65

Oblivion wrote: »

More an unnecessary irrelevance than an issue. Perhaps it's just my tidy methodical mind, but I don't like being labelled with yet another number when it makes no logical sense.

Dave.

Without a Sort code any typing mistakes on account details would be more likely to result in monies going to wrong person instead of bouncing back, the sort code also identifies the bank to other banks and as most account numbers are 8 digits without sortcodes this would need to be lengthened meaning all sorts of changes in banking systems.

Hope this makes sense.