A major Australian bank, Bendigo Bank, has introduced a controversial fee that’s left customers and experts fuming.
The new fee charges customers $2.50 for needing assistance to access their own cash over the counter. But is this a case of the bank profiting from customers’ own money, or is there more to it?
Lack of Regulation: The Real Culprit Behind the Fee
According to experts, the introduction of this fee is a direct result of the lack of regulation in the banking sector.
Finance Sector Union (FSU) National Secretary Julia Angrisano believes that the absence of minimum service standards for banks has given them the freedom to impose such fees.
“The reason the Commonwealth Bank felt it could introduce a $3 fee for some customers and the Bendigo Bank a $2.50 fee is because there’s no regulation to stop them,” she said.
The Darker Purpose Behind Transaction Fees
Angrisano also warned that these fees serve a “darker purpose”. “Transaction fees, combined with branch closures and the removal of ATMs, are all designed to reduce the costs on banks, not to benefit customers,” she explained.
“Banks want customers to access low-cost methods of transaction, and they don’t care that not all of their customers want to. Banks deny, or charge extra, for choice solely to boost their own profit.”
A Cash Grab or a Necessary Move?
2GB host Mark Levy has slammed the new fee, calling it a “cash grab” from another big bank. “It’s all well and good for them to spin it as a net decrease on what customers are paying, but you’re still charging people $2.50 to walk into a bank and get your own money out. How is that fair?” he questioned.
What’s Changing and What’s Staying the Same
Under the new fee structure, Bendigo Bank has removed the monthly service fee of $6 on Bendigo Everyday Accounts.
However, customers will now be charged a $2.50 staff-assisted service fee for cash withdrawals completed over the counter in branches.
Transactions conducted at the Post Office will also incur a reduced fee of $2.50, down from $4. On the other hand, cash withdrawals from Bendigo Bank’s ATM network will remain free of charge for all customers.
A Familiar Controversy
This move comes just weeks after Australia’s largest bank, Commonwealth Bank, faced backlash over a proposed $3 fee for cash withdrawals from branches.
Levy drew comparisons between the two banks, saying, “We all kicked up a stink about Commonwealth Bank last year, but Bendigo Bank is doing the same thing.”
Following national backlash, Commonwealth Bank announced that it would rethink the changes and “pause” the fee for some customers. However, the bank stopped short of removing the service fee altogether.