As we navigate the ever-evolving landscape of banking and finance, it’s not uncommon to encounter new fees and charges that can leave us feeling a little bewildered. The latest development to cause a stir among Australian bank customers is a controversial fee introduced by Bendigo Bank, which will see customers charged $2.50 for staff-assisted cash withdrawals over the counter. This move has sparked a heated debate about the fairness of such charges and the true motives behind them.
The fee, which came into effect following a statement from Bendigo Bank on November 1, has been met with criticism from both industry experts and the public. The Finance Sector Union (FSU) National Secretary, Julia Angrisano, has been vocal in her support for minimum service standards for banks. She points out that the lack of regulation in the banking sector has allowed institutions like Bendigo Bank to implement such fees without any legal barriers.
Angrisano goes further, suggesting that these fees have a ‘darker purpose.’ She argues that the combination of transaction fees, branch closures, and the removal of ATMs is a strategic move by banks to cut costs at the expense of customer convenience and choice. According to her, banks are pushing customers towards lower-cost transaction methods, showing little regard for those who prefer or require more traditional banking services. The implication is clear: these changes are designed to bolster bank profits, not to serve the needs of customers.
The sentiment is echoed by 2GB host Mark Levy, who has called out the fee as a cash grab. Levy challenges the notion that such fees could be justified as a net decrease in overall charges, pointing out the inherent unfairness in charging people to access their own money in a bank branch.
In an attempt to soften the blow, Bendigo Bank has removed the monthly service fee of $6 on Bendigo Everyday Accounts, while also reducing Bank@Post fees from $4 to $2.50. However, these changes do little to appease those who are affected by the new over-the-counter withdrawal fee. It’s worth noting that cash withdrawals from Bendigo Bank’s ATM network remain free of charge for all customers, which may offer some consolation to those who can access these machines.
This controversial fee comes on the heels of a similar situation with the Commonwealth Bank of Australia (CBA), which faced national backlash after planning to introduce a $3 fee for branch cash withdrawals. The public outcry led CBA’s group executive of retail banking services, Angus Sullivan, to ‘pause’ the change for some customers and reconsider the approach, especially in light of the financial pressures many Australians are currently facing.
The comparison between Bendigo Bank and CBA’s fee strategies highlights a broader trend within the banking industry, where the push towards digital banking and cost-cutting measures often comes at the expense of customer choice and accessibility.
How has the new fee structure impacted you? What are your thoughts on the shift toward digital banking? Share your insights below—let’s discuss how banks can better serve all customers.
Also read: Unexpected $3 fee: CommBank CEO responds to growing customer concerns
