South Africa’s largest retail bank, Absa, on Monday announced a new fee structure that will offer its more than 7-million customers greater levels of choice and value for money in their banking activities. The new fee structure is effective from April 1 2006.
“Absa has paid particular attention to ensuring our fee structure will benefit the mass and middle markets as well as small and medium enterprises,” says Absa group executive director, Louis von Zeuner.
“We are delighted that the average increase on individual bank charges has been kept below the projected inflation rate.
“Increases will be between 2,85% and 3,5% and have been designed to make banking more affordable for the majority of South Africans. As an example of our commitment to transformation required by government, we have elected to absorb much of the costs associated with Mzansi accounts and announce a 0% increase on those accounts.
“Absa is proud to serve our 624 000 Mzansi customers and we see this as an important investment in the future prosperity of South Africa,” says Von Zeuner.
Mass-market customers who frequently withdraw small cash amounts from Absa ATMs will in future pay up to 3,57% less than they do today and there is no increase on mass-market point-of-sale transactions. Many customers will see significant cost savings, as two thirds of all of Absa’s mass-market Absa ATM transactions are under R400.
“Our new fee structure forms part of our drive to make banking more accessible and as affordable as possible for all South Africans. Absa will not be increasing fees on standard cheque-service fees or counter-cash deposit fees and no overdraft ledger fee will be levied for the small business banking sector.
“Our pricing structure recognises the fact that customers cannot be pigeon-holed into ‘one-size-fits-all’ banking. Customers want the option to individually tailor their banking services and choose the way they conduct their business. The overriding principle is that electronic banking is cheaper than in-branch banking. Using a debit card for purchases costs less than drawing cash at the teller and is an option available to our customers,” says Von Zeuner.
Absa is also focused on extending its reach into all parts of South Africa in order to enhance access and increase convenience for South Africans. In fact, 885 new ATMs were added to the Absa network from April to December 2005. A further 350 are being planned for 2006. This will take the number of machines deployed to 6 186 in December 2006.
Cellphone banking and cellphone-banking transactions will also remain free until November 2006.
To assist customers in taking charge of their banking costs, in-branch consultants will be on hand to help customers choose the most applicable, cost-effective products and services.
Every Absa branch will also have comprehensive, easy-to-read brochures outlining ways customers can reduce bank charges, and detailing the most convenient banking methods and delivery channels. The same information is available at www.absa.co.za, with additional functionality and enhancements being released shortly.
“A banking transaction is a commodity that has an associated cost. It is our aim to continuously strive to provide our customers with ways to reduce their banking fees by providing choices, both in the way they do their banking and in the products they select,” says Von Zeuner. — I-Net Bridge