(25 November 2009 – Australia) NAB’s decision to drop penalty fees has resulted in a 40 percent reduction in customer complaints and a sixfold increase in customer acquisitions.One month after axing the fees in a bid to draw in new customers and improve the bank’s image NAB is reaping healthy rewards.
The dropped fees come at an annual cost of A$100 million to the bank.
Cameron Clyne, chief executive officer, NAB, said that the bank’s market leading purge on penalty fees was so successful in driving new business and generating customer goodwill that it has almost covered the drop in fee revenue.
Mr Clyne refused to divulge the revenue the new customers had created but said that the bank’s leadership on fees had helped rebuild the bank’s shattered image.
The remaining ‘big four’ also made changes to their fee structure, but none made the move to scrap fees altogether.
ANZ reduced their penalty fee to A$6, while Commonwealth and Westpac dropped theirs to A$10 and A$9 respectively.