Why bank signature cards need a custodian

The recent news about the Metrobank theft brought me back to an old story that I wrote for Inquirer about bank signature cards. It dawned on me that if the bank internal control system for signature cards were stricter, perhaps, multimillion scams could be avoided – assuming of course that there is no conspiracy from within the bank.

http://business.inquirer.net/46487/how-secure-is-your-bank-signature-card

In my opinion, signature cards should be entrusted to a custodian or one bank staff (per branch) who is trained to verify signatures. 

If you visit some banks nowadays, you will notice that it is often also the teller who verifies the signature from the computer system. This method is a speedy solution but it loosens internal control. 

There is no check and balance in this case. There should be another person who will approve the signature before the final transaction is completed. This offers an opportunity to spot inconsistencies in the transaction.

As a young banker for a major foreign bank in the Philippines, I was once sent for training on money laundering. During the session, I learned that syndicates recruit young people to do forgery and the copiers are often quite talented to the point that actual signature verification at the bank can be tricky. Thus, I had always assumed that bank personnel needed some formal lessons before undertaking signature verification.

Keep in mind that it is the signature cards that serve as the key to proceed or stop a transaction. Much of it boils down to a customer’s signature. Therefore, it is a critical point in a banking transaction. The question now is this - are there still banks who employ and train employees to become custodians for these signature cards?

For example, in the case of the alleged Metrobank theft, an extra step in signature verification from a third party could have stopped that transaction if the instruction letter was forged to begin with (as reported in the news). 

Of course, another angle that is being investigated is whether there were other bank officials involved in the scam. If so, that would be a different story all together.

Bottom line is this. When a customer gives the bank his signature card, he is basically telling the bank to honor transactions based on his signature. 

If the signature is the main instrument needed to proceed with a transaction, then it means that the bank is expected to guard them the way they would care for a person’s privacy. 

Thus, signature cards should not be left in the open for everyone to see. Rather, the documents were meant be kept private and confidential, for the ultimate protection of the bank customer and his money.

The elegance of a peacock and a mallard duck

Although both are males, the peacock and the mallard duck are considered symbols of beauty and elegance. The peacock tends to be known for showing off its feathers and making some noise in the process. The duck, on the other hand, exudes quiet elegance. I once went boating and a mallard duck swam beside me without much fanfare.

I learned that ducklings swim and feed immediately when they are hatched. Plus, the female duck lays a lot of eggs that are more than half her body weight, thus making nesting a somewhat stressful experience.

A rich lady wanted to teach the meaning of elegance by showing the world her expensive gown and her perfectly assembled dinner centerpiece. On the other hand, an old lady with average means never said a word about elegance but rather, exuded it through her exemplary character. Somehow, they reminded me of the peacock and the mallard duck. So, what exactly is human elegance?

It was Coco Chanel herself who said, “Elegance does not consist in putting on a new dress.” She also used the word “modesty” to describe elegance. And most of all, she is often quoted for saying that “Simplicity is the keynote of all true elegance.”

Simplicity suggests that true elegance is almost always never flaunted. People will call a lady elegant but it does not usually come from the person herself. If you find a woman who likes to call attention to herself, that would constitute vanity and not elegance.

Quiet elegance involves developing good taste in one’s appearance or demeanor but it has nothing to do with a person’s material wealth. Design techniques or fashion sense can be learned.

It is a word that is hard to define because practicing elegance also includes a spiritual aspect to it, a certain sensitivity to society in general. If the wardrobe or centerpiece costs more than an average worker’s monthly salary, for example, sometimes discretion is needed. 

At least from what I remember, it was also Coco Chanel who said that a stylish woman can pass through an ordinary crowd unnoticed and then gather attention as she enters a room full of so-called important people.

Elegance goes beyond the dress and heads straight to the character of a person. While it is good to learn about matching colors and coordinating pieces, it is even more imperative to build virtues such as honesty, integrity, and kindness.

Simplicity is acquired through one’s upbringing or life experiences. It is a series of decisions that often reflect themselves in a person’s design choices, among other things. It is also the touchstone of grace and perfection.

See the Philippines through a 6-D eagle ride

Just a wild idea but perhaps the Philippine Department of Tourism’s marketing campaign can include bringing tourists to experience the six dimensional “Agila” (translated as eagle) ride in Enchanted Kingdom. Essentially, viewers experience a simulated eagle flight and are brought around beautiful spots in the Philippines through a short video clip with corresponding special effects such as moving seats and water sprays.

Enchanted Kingdom in Sta. Rosa, Laguna has taken the initiative to support the preservation of the Philippine eagle, thus the connection with the “Agila” theater ride. This special feature is housed in a separate building and requires a short walk from the main amusement park.

The trek to the main theater is dotted with inconvenient stops and is thus, an area for improvement. Viewers, especially more senior visitors, who have to walk under the hot sun normally, seek immediate relief. Unfortunately, one has to walk a few meters more upon entering the gate only to be greeted by staff saying that big bags still need to be stuffed in a locker. 

Upon entering the air conditioned building premises, the audience is led to a dark room with a video introduction from Enchanted Kingdom’s wizard called Eldar, making one believe that the show has finally started. The audio system is muffled that only a few sentences can be understood.

Then the people are led to three more dark rooms until they are shown the lobby, only to be told to wait for another 15 minutes. As it appears, they use this time gap to take pictures and show a short video clip about the eagle sculpture found in the lobby, among other things. It is also at this point that it becomes apparent that the air conditioning is not sufficient, at least for some people. 

Finally, the viewers are called to enter the movie theater. For the third time, they are asked to show their tickets. It doesn’t look like a well-planned system because normally, guests only have to show their ticket once upon entering the gate. 

As we reach the entrance to the theater, the guests are again asked to stop and watch a security video. Remember that at this point, the place is not that cool. Anyway, everyone’s patience pays off after the crowd finally enters a perfectly cooled theater venue.

The main show was memorable albeit, a very short one. The audience can be heard reacting to the water sprays and other effects. According to one staff, it was a six dimensional experience but it is unclear how much different it is (except for moving seats that give the illusion of flying) from their older theater Rialto that offers a four dimensional experience of “Ice Age.” 

Nonetheless, the multimedia show that ran for only six minutes is enough to bring thoughts of patriotism and love for country that perhaps is the goal. After watching and flying like a Philippine eagle, the viewers are likely to conclude that indeed, this country is incredibly beautiful.