Banks: struggling so hard they’ll have to charge you more

The Greens… would ban banks from charging their own customers to use their own-brand ATM machines.

Most banks already grant customers a ration of fee-free transactions, but the Greens legislation would cap the fee charged to customers who use “foreign” ATMs, owned by rival financial institutions or independent ATM operators.

Mr Munchenberg said banks might have to start charging all their customers a fee to cover the costs of providing an ATM network, if foreign fees were capped.

Third-party ATM fees typically were $2 or higher and that a person who checked a deposit balance before making a withdrawal could be charged a ” “double-whammy fee of $4”

 

So let me get this straight. Banks often charge you an annual fee to join. Then charge you a fee unless you have $X per month deposited into the account. They pocket a portion of the fee whenever you use BPAY or credit card facilities. They continually use your money transparently to trade currencies and make massive profits. They charge you fees for over-the-counter withdrawals. During and since the global financial crisis, all Australian banks have record profits and are now among the most powerful banks in the world.

Explain to me why they can’t afford to give customers at least one entirely free way of withdrawing their own money?

If a company like Facebook can provide a global network to it’s consumers for free, why can’t banks? Both operate on the same business model: the more people who use them, the more the business is valued, hence the more profitable the business becomes through other methods.

The banks better just remember this: They are like the ancient gods. If everyone stops turning to them, their power will cease to exist.

Source: Banks warn of ATM fees for all customers | News.com.au.

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Categories: Business

Author:Andrew Beato

CEO, Chief Editor and founder of Intentious. Passionate comment enthusiast, amateur philosopher, Quora contributor, audiobook and general knowledge addict.

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One Comment on “Banks: struggling so hard they’ll have to charge you more”

  1. February 17, 2011 at 1:01 pm #

    Here’s a thought: Provide ATMs for free and then use that 20 second wait time staring at the screen, to advertise a slew of 3rd party products. What a profitable business model!

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