National Bank cuts some fees in move costing NZ$30 mln (Update 1)

Responding to similar fee reductions from BNZ, Kiwibank, and Westpac, New Zealand's largest banking group ANZ National has announced some fee reductions at its National Bank operation for 'self service' products such as internet banking. It has also reduced 'exception' fees for overdrawn accounts and late payments. (Updated with more details of fee reductions) ANZ National said the fee reductions would reduce costs by NZ$30 million for 200,000 National Bank customers. ASB is the last of the major banks in New Zealand that has yet to reduce its fees. ASB had said in early August it would make a decision within 6 weeks. The full detail is in statements below. We will update this later with more detail and background.

The National Bank today announced across-the-board fee removals and reductions, as part of a wide-ranging fees review, benefiting customers by about $30 million a year. ANZ National Chief Executive Officer Jenny Fagg said The National Bank had undertaken a broad fees review that went wider than just exception fees, to focus on feedback from personal customers on the fees they disliked the most. "This has resulted in our decision to remove 11 fees, mainly in the area of self-service (phone, internet and mobile phone) banking, and to greatly reduce exception fees," Jenny Fagg said. "The National Bank prides itself on delivering fair and transparent services to our customers, and today's announcement continues that approach by going to the heart of what matters to our customers and what they have told us they don't like. "We have always been committed to working closely with our customers and delivering a personal service that they value. That's one reason why The National Bank has not traditionally charged an "honour" fee. "We also operate a one-day grace period, in addition to a $20 "˜buffer', before an unarranged overdraft fee applies. Likewise, before we impose exception fees, we generally take a wider view of a customer's banking relationship with us. "We believe a reduced exception fee is the responsible thing to do to encourage customers to meet their payment obligations, and also to reflect bank costs," Jenny Fagg said. The fee removals are: "¢ All fees to set up, amend, and make payments through phone and internet banking "¢ All fees to access mobile phone banking including text alerts "¢ All fees to access phone banking Customers are also reminded that they can access over 750 ATMs (both ANZ and The National Bank ATMs) across New Zealand without incurring "other bank" ATM fees. The changes will take effect on 1 December 2009. At a glance Number of customers positively affected: about 200,000 per month Number of fee removals: 11 fees Number of exception fee reductions: 3 Benefit to customers: About $30 million a year Fee removals for "self service" banking No channel access fees for Touchtone Phone Banking: "¢ Touchtone Phone Banking calls (previously only the first five were free per month then 50c per call) No channel access and per transaction (service) fees for Mobile Phone Banking. Removing the fee on the SMS balance alert, to encourage customers to use the early warning systems, as follows: "¢ Mobile Phone Banking Txt-Banking Txt Request Fee (previously 25c per text) "¢ Mobile Phone Banking M-Banking Alert Service Fee (previously 25c per alert) "¢ Mobile Phone Banking M-Banking One-Off Payment fee (previously 25c per payment) No charges for setting-up, amending, and undertaking payments through self-service channels (Touchtone Phone Banking, Mobile Phone Banking, Internet Banking) as follows: "¢ Automatic Payment Set Up through Online Banking Fee (previously $2 each) "¢ Automatic Payment Alterations to payments through Online Banking (previously $2 each) "¢ Bill Payee Set Up through Online Banking (previously $2 each) "¢ Automatic Payment Service Fee (previously 25c per payment) "¢ One-off payment and tax payment via online banking (previously 25c per payment) "¢ Automatic Payment Alterations to payments through Touchtone phone banking (previously $2.50 each) Other fee removal "¢ "˜MyPhoto' Card fee (previously $9.95 per card) Exception fees "¢ Unarranged Overdraft Fee to reduce from $20 to $10 per month "¢ Dishonour Fee to reduce from $30 to $10 per event "¢ Credit Card Late Payment Fee to reduce from $25 to $15 per month "¢ New fee: Credit Card Over Limit fee at $15 Buffer zones before exception fees apply "¢ Maintaining a one-day grace period before an Unarranged Overdraft Fee applies "¢ Continuing the $20 "˜buffer', before an unarranged overdraft fee applies "¢ Customer's wider banking relationship is generally taken into account before an exception fee is applied

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