Revisiting The Safe Deposit Area

Dear Editor:
Your recent editorial, "Are Safe Deposit Services Really Safe?", I read with great interest. Upon completing the editorial I was very concerned at your recommendation that institutions should consider getting out of the safe deposit business. Safe Deposit is a vital, integral part of financial services and one that many consumers certainly need and want. What better place to store your valuables than in a safe deposit box? While some restrictions may be imposed based on state laws, generally there are no problems in accessing a box no matter what the circumstances.

Safe Deposit is the only service a consumer must still come into the institution in order to conduct their business. This visit gives the institution and its personnel a prime opportunity to cross sell other services and build a stronger relationship with their account holders.

Even though safe deposit is an area that is vulnerable to lawsuits, it is only because institutions do not recognize the seriousness of the business, therefore fail to provide the training and education needed to operate with sound policies and procedures in place. Yes, some institutions operate under the premises that anyone who can turn a key is able to work in safe deposit. We know, as professionals, that is far from the truth. One must be knowledgeable in internal procedures, state laws and sound policies to operate adequately in this area.

An institution with these safeguards in place will be able to withstand allegations of missing items, wrongful access or other complaints that might be made.

While you refer to particular lawsuits and settlements of allegations prior to the legal process, one must remember there are more institutions out there who practice sound policies and procedures than not. In regards to your recommendation that institutions get out of the safe deposit business, I don't believe anyone would recommend that an institution get out of the lending business because there are some bad loans made by inadequately trained or incompetent personnel.

In closing, safe deposit can be profitable if institutions will actually look at it as a profit center and allow it to operate as other profit centers operate in their institutions. Prices for safe deposit boxes are no longer in the $5 to $6 a year range as is indicated in your article. As far as mail-box stores and other safe deposit providers, no consumers want to keep their valuables in a place that has little or no standards for security to protect their assets or correct procedures to access their box. This letter was written as an alternate view and I would appreciate it if you would offer it to your BANKERS' HOTLINE readers as another opinion for their consideration.

Joyce A. McLin, Executive Director
The American Safe Deposit Association,
Franklin, Indiana


Editor's Note: Thanks to all safe deposit service providers who responded to my editorial in the Vol. VIII, No. 5 issue. We agree the lack of training is an important factor. It's one of the reasons BANKERS' HOTLINE joined forces with the Bankers Video Library in producing and marketing Safe Deposit Area Procedures, a video training program emphasizing the correct procedures to follow in the safe deposit area.

Copyright © 1998 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 8, No. 7, 7/98