UAE Bank Disallows Tele-Marketing for Loans

In the United Arab Emirates, a recent decision by the region’s Central Bank has resulted in the prohibition of banks marketing their loans and other financial services over the telephone. This is meant to be beneficial to both customers and banks. According to Fund Administrator at the National Bank of Abu Dhabi Asset Management Vikram Shetty, “this step by the central bank will help improve service levels across the banks and increase competition among them to directly attract customers.”

Increased Unemployment?

While this marketing prohibition may be beneficial to many, it runs the risk of impacting others negatively. What this ultimately will mean is that people could be out of a job; in fact, they will be out of a job if they were the ones employed as telemarketers. Further, it could lead to greater efficiency as customers who want to order a credit card or apply for a loan, will now have to “approach the bank directly.”

Advantages and Disadvantages

At the end of the day this move will have both advantages and disadvantages for clients and workers alike. The banks will have to work harder in getting to know their clients better and they will be forced to review their profiles. It will also take pressure off customers who will no longer be harassed by telemarketers. Aggressive tactics will no longer be acceptable.

End to Telemarketing Scams

The other advantage of this decision is that it will put an end to telemarketing scams that have been a problem for way too long. For example in Auckland, a couple of weeks ago the Newmarket Business Association sent out a warning against a telemarketing scam that was “using the association’s name to raise funds.” Using emotional blackmail, someone is pretending to be a representative of the association and asking them to donate $35 to “send sick kids to a holiday camp.” This was brought to Ashley Church (head of the Association)’s attention by the Child Cancer Foundation, one of three causes that is being used in this manner.

Telemarketers have had a bad rep for a while. In this case above, completely justifiably. People in general hate to be bothered by them. They often call at the worst time, around 7pm in the evening when you may be enjoying a nice dinner with a loved one, or trying to put overtired kids to bed. The only shame in this whole situation is those telemarketers who will now be forced to find new jobs, but other than that it is generally a good thing when telemarketers get the boot.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]