Axing fees better for banks

Author
Christina Campbell,
Section
Business,
Publish Date
Monday, 25 September 2017, 11:41AM
Banks across the Tasman have announced they will be axing ATM fees (Photo \ NZ Herald)
Banks across the Tasman have announced they will be axing ATM fees (Photo \ NZ Herald)

Banks will be the real winners when ATM fees are ditched, so it would make sense for New Zealand banks to follow their Australian counterparts and axe the fees too.

Australia's biggest banks have announced they'll stop charging customers of other banks a two dollar fee to use their ATM's

The decision was announced yesterday, citing customer feedback.

Director of Academic Programme at Massey University's Business School Claire Matthews said charging fees isn't particularly profitable for banks.

"You've got the costs actually involved in administering the fee and if you can can get rid of the costs of actually running the ATM there's certainly some advantages, and therefore would make sense for New Zealand banks to do the same thing.

Matthews said banks were forced to expand their ATM networks when they started charging fees.

"It also has the advantage for the banks of them being bale to say actually we don't need to have as many ATM's because we're going to let you use whatever ATM you can find at no cost."

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