THE steady growth in direct banking and nonlife insurance business here and in Britain is a reflection both of the desire of financial institutions to cut their operating costs and the public to avoid face to face dealings with bank officials or insurance salespeople. Arranging your house or car insurance over the phone, or settling your bills or even applying for a loan by telephone is not just more convenient and efficient, but can sometimes be cheaper.
In recent years the Americans have taken direct banking and lending one stage further with instant loan arrangements through ATM machines, and it appears that the service is spreading to Britain where a number of banks are considering installing the special machines at their branches.
The loan application process takes about 10 minutes and involves the account holder tapping in their personal details including PRSI number onto a touch sensitive screen and swiping through their bankcard which is then read for credit and ID checks.
A credit loan limit is established and once the amount is determined the applicant signs on a virtual dotted line on the screen and for security reasons a photo is taken of the applicant by a camera in the machine. A hard copy of the loan agreement and a cheque bearing the applicant's photograph is then printed out.