Fee cuts have minor effect
(18 November 2009 – Australia) Infochoice has said that fee cuts by the Big Four banks will only have a marginal effect on the overall fee income earned.
Shaun Cornelius, chief executive officer, Infochoice, said that the finance comparison group predicted a A$4.5 billion in fee revenue this year, only down marginally from A$4.84 billion in the last year.
An Infochoice survey found that the fees most despised by Australians were monthly account fees, annual credit card fees and early repayment fees on home loans.
Mr Cornelius said that Infochoice thinks that bank fees are higher than they should be and that they are more complex than necessary and believes that there may be a relationship between the two facts.
Mr Cornelius also added that the recent moves by the banks were welcome, but there are still too many fees, too often; everything the consumer does results in a fee.
A spokesman for Choice, Christopher Zinn, said the big banks were not competing on fees and that there is still a raft of fees out there that are higher than comparable countries.
Choice has always warned people to look behind the headline interest rate, as the fees and charges add up considerably, Mr Zinn highlighted.
An Infochoice survey found that the fees most despised by Australians were monthly account fees, annual credit card fees and early repayment fees on home loans.
Mr Cornelius said that Infochoice thinks that bank fees are higher than they should be and that they are more complex than necessary and believes that there may be a relationship between the two facts.
Mr Cornelius also added that the recent moves by the banks were welcome, but there are still too many fees, too often; everything the consumer does results in a fee.
A spokesman for Choice, Christopher Zinn, said the big banks were not competing on fees and that there is still a raft of fees out there that are higher than comparable countries.
Choice has always warned people to look behind the headline interest rate, as the fees and charges add up considerably, Mr Zinn highlighted.
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