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
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
