Self-Service Safe Deposit

by Dave McGuinn

The "Bus-Locker" Concept
Because of automation, the term "Customer Service" is taking on a new meaning in the financial industry. Every type of financial service is being looked at closely to reduce operating costs. Even the traditional safe deposit service is receiving a complete make-over in some large financial organizations. This new make-over is called Self Service.

How It Works
Picture this new "self service" safe deposit concept in action?a young man enters your financial institution, walks up to the safe deposit vault door, inserts a plastic card into a card reader, and inputs his PIN on a key pad.

The metal security gate opens and he enters the vault alone.

He goes to his safe deposit box, inserts his key into the lock, opens his door, takes out his box and does his business on a table or shelf in the vault, puts the box back, locks his door and then leaves the vault.

This complete process was filmed and recorded by several closed circuit TV cameras mounted inside the safe deposit vault and was accomplished without any signature or identification verification or assistance from any safe deposit staff.

Can you imagine this situation happening in your safe deposit area?!

At least two very large financial institutions, with hundreds of branches nationwide have made the corporate decision to convert their safe deposit functions into a self service operations. Other financial institutions, both small and large, are also now looking at it.

Only One Key Needed
The two that have opted for this type of operation have ordered new safe deposit boxes with single nose (one key) locks from various equipment suppliers. These locks only require the boxholder's key to unlock the door.

The boxes are being installed in new branches or used to expand existing vault locations. In existing vaults, the safe deposit locks are being reworked, and current boxholders are being switched over to this new self service system.

Boxholders are told that their lock will be removed from the door, the guard key tumblers will be set to a neutral position, and on all future entries only their key will be needed to open the box. These boxholders can now access their box alone, with no assistance from an employee.

Ticking Time Bomb!
Unfortunately, these financial institutions have unknowingly created their own personal time bomb. This "bus locker" concept may well come back to haunt them.

The small savings they will realize in personnel costs will never off-set the unlimited liability and the unwanted publicity these institutions will assume in the future.

Lawsuits Waiting To Happen
Court records show that safe deposit boxholders in the United States have become lawsuit crazy. If just one boxholder claims that something is missing from a box and decides to sue the institution, this new, unique self service concept will be put under a microscope. In the courtroom, experts will testify about correct procedures and security measures, that historically have protected consumer's safe deposit valuables, have been done away with under the self service concept.

And financial institutions have learned, much to their dismay, that if one safe deposit boxholder sues, others quickly follow.

Unfortunately, even the CCTV cameras that are installed in the vault for security purposes can be used against the institution. The boxholders can claim that the cameras have recorded everything they stored in their box and this is why someone decided to steal their box contents.

The self service concept will also be an open invitation to numerous con-artists who are currently operating in many safe deposit vaults all over the U.S. All these criminals need to successfully break into safe deposit boxes and steal boxholders' contents is the opportunity to be left in the vault alone. Cameras will not deter them, for once the deed is done, they are never seen again. Their thefts are swift, sure and professional. They will be delighted with the new concept!

Get Out Of The Business
If financial institutions don't want to offer safe deposit boxes in a protected, secure and defensible manner, they should strongly consider just getting out of the business. The flip side of that, of course, is that if they decide to eliminate this safe deposit service, many of their more affluent accountholders may take their safe deposit business, along with their deposit accounts, somewhere else. Because this is such a new concept, it is too soon to tell what type of losses and notoriety it will bring. But certainly before any financial institution decides to jump on the new self service bandwagon, it should fully understand and carefully analyze the total repercussions and liability of this action.

Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 7, 6/97