Banks scrap ATM withdrawal fees amid scandals
The Commonwealth Bank (CBA) announced it would remove ATM withdrawal fees yesterday, while the other big three banks followed amid continuing debate around the need for a Royal Commission.
The CBA announced yesterday morning it would remove withdrawal fees so all CBA and non-CBA customers would not be charged an ATM withdrawal fee.
Data from the Reserve Bank of Australia (RBA) showed Australians made more than 250 million foreign ATM cash withdrawals in the last financial year.
Retail banking services group executive, Matt Comyn, said: “Australians have complained for some time about being charged fees for using another bank’s ATM”.
“We have been listening to consumer groups and our customers and understand that there’s a need to make changes that benefit all Australians, no matter who they bank with. This is one of the steps we’re taking to make that happen.”
CBA’s move to be the first cab off the rank comes after it announced radical changes at the bank last week, including the departure of wealth chief, Annabel Spring, the sale of CommInsure to AIA, and its consideration of the future of Colonial First State Global Asset Management (CFSGAM).
ANZ and Westpac followed suit, with Westpac also announcing that non-Westpac customers using St. George Bank and BankSA ATMs would not be subject to an ATM fee.
National Australia Bank (NAB) was the last bank to remove ATM withdrawal fees.
Chief customer officer of consumer banking and wealth, Andrew Hagger, said: “This is a good outcome for customers. We know it has been frustrating for them to be charged to withdraw their own money from an ATM, and the change we are announcing today will benefit millions of Australians”.
NAB also said it was the only major bank to have a transaction account with no monthly account service fee, which it said saved customers around $5 every month.
AUTHOR
Malavika Santhebennur
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
