(28 January 2010 – Australia) National Australia Bank is axing fees, which amount to A$40 million per year, in an effort to attract and retain the SME market.The Herald Sun reported that the bank would be abolishing fees for dishonoured cheques, cash handling and periodical payments when insufficient funds are available.
More than 500,000 business account customers are also said to benefit from the cut of the 0.25 percent cash handling fee; for cash amounts greater than A$5000 when they are depositing or withdrawing.
It was also reported that the soon to be announced package will also include a A$1000 buffer, effective from May 1.
Joseph Healy, business- banking group executive, NAB, said that the fee overhaul was not so much a grab for market share but a bid to appease existing customers.
Mr Healy also added that the fees, which often hit small-business operators who struggle with cashflow, were identified in customer-focus groups and surveys as unfair and annoying.
While research revealed customers were prepared to cop what they regarded as fair fees, the ones being abolished were the most complained about, Mr Healy said.
When the bank reviewed the fees it was clear that small business often incurred dishonoured cheque and other fees unintentionally.