(7 February 2011 – Australia) Australia’s corporate businesses are increasingly reporting rising transaction fees, according to new research from business banking research firm East & Partners.The firm has just released to clients its latest round of Australian
Corporate Banking Markets research (20-530m enterprise turnover market), which
reports more than half of all corporate bank customers have experienced an
increase in their transaction fees, particularly Cash Management, Payables and
Remittance Processing.
Over the past full year no corporates have reported a reduction in transaction
fees, a first since reporting began in 2003.
In January 2008, 16.3 percent of businesses reported an increase in transaction
fees over the previous six months; this has now risen to 58.0 percent.
“This climb in transaction based services charging reflects the increased focus
commercial banks have on fee-for-service income streams, a focus strengthened by
what is a very flat credit demand environment and shareholder expectations for
continued revenue growth.” commented East & Partners’ principal analyst Paul
Dowling.
“We will see more and more disaggregated product pricing as providers also
reinforce their cross selling efforts in what is a critical middle-market for
them, he said.
The good news is that whilst the incidence of corporate experiencing fee
increases continues to climb, the actual rate increases occurring are slowing
considerably. The percentage by which corporate transaction fees have risen has
decreased from 16.9 percent average change to 6.9 percent over this same six
time-frame to January 2011.
About East & Partners’ Australian Corporate Banking Markets Program
East & Partners’ Australian Corporate Banking Markets report is an ongoing
six-monthly research service designed to deliver bank market share, wallet
share, customer satisfaction, mind share, engagement and churn analysis for
banking products among corporate enterprises turning over A$20-$530 million per
annum.
For more information please contact:
Kimberley Burgess
Marketing Communications
East & Partners
t: 02 9004 7848
m: 0405 250 796
e: kimberley.b@eastandpartners.com