huihui_bonnie_chan

I want to know is there some disadvantages for banks to charge service fees to customrs? I know one, loss customers.any others?
thanks.

chinoise

Hi, Bonnie,

R U from HK?

bernhard

In France, it is the main revenue for banks AFAIK

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Bernhard
(Admin)

suggestions ?

chinoise

In HK, there's been a gradual increase of bank charges only in the past few years, esp when the American interest rates were real low, and the property market was not active. Owing to keen competition, banks are reducing their branches and charging customers service fees in order to reduce the use of counter services, and encouraging phone and internet banking. More and more charges are introduced and customers with little money are not welcome.

ainsel

That's very much the situation in Australia as well. The major banks - chiefly the "Big Four", Westpac, ANZ, Commonwealth and National Australia Bank - are applying more and higher fees to basic banking accounts, and then posting substantial profit increases. The high fees seem particularly aimed at customers who transact their business in branches, but automatic teller machine transactions are also attracting more fees than they used to.

I don't think the banks are very concerned about the loss of small account customers, as long as they are keeping major clients and shareholders happy. They claim it's not up to them to commit to a social charter.

There has been a drift in the lower end of the market towards credit unions, community banks and other alternative providers, and this trend seems to be accelerating. But for a lot of people, especially older people, the sense of security from having one's money with one of the Big Four is not given up lightly.

Pensioners and low income families are the losers. As usual.

ainsel