Bank charges under the spotlight

THE Namibian recently received this SMS complaint from a reader:
‘Bank charges. Vakwetu. N$5 000 was deposited on my account. N$410 was taken as a bank charge fee. What is the reason for banking? This is daytime robbery. Where is the consumer’s right?’

We contacted Bank Windhoek, Nedbank, Standard Bank, First National Bank and the Bank of Namibia for comment. Bank Windhoek asked for clarity and we sent them a list of questions regarding the issue. These are the responses we received from the banks: Standard Bank – Rejoice ItembuIt is difficult for us to provide an appropriate response regarding the fees charged as the necessary information required has not been stipulated. I would however encourage the customer to contact our Customer Experience Manager, Erica Mulondo (Erica.Mulondo@standardbank.com.na or 061 294 2775) for an investigation regarding the fees. First National Bank – Dawn Humphries Manager Corporate CommunicationsThe bank charges service fees only once a month and the specific amount depends on the option that the customer has chosen at account opening. If the customer would like more info on FNB’s bank charges, we have a comprehensive pricing guide that is available to all customers, at any FNB branch or it can be downloaded from the FNB website.Unfortunately we cannot comment on anything else as we need the customer’s account details to advise the best pricing option, if the customer is an FNB Lifestyle account holder, we offer the unlimited electronic pricing option – at a cost of N$98 per month.For N$98 per month the customer can do as many POS purchases, ATM transactions, cellphone banking transactions, online banking transactions or have as many debit orders and schedule payments as they want at no extra charge.There are also other pricing options available which the customer can choose from. We would advise customers to open a savings or investment account if they would like to invest or save their money as they receive limited to no credit interest on their transactional accounts.FNB offer savings and investment accounts that allow customers to invest for as little as N$100. We also offer the FNB savings pocket, which allows you to automatically save an amount (You can choose between N$5, 10, 20, 50) with every POS purchase you make free of charge.Customers can enquire at any FNB branch or visit the FNB website for more information.Bank Windhoek – Marlize Horn Executive Officer: Marketing and Corporate Communication ServicesPlease note that Bank Windhoek cannot comment on the specific complaint sent to The Namibian as it is not confirmed that it is a Bank Windhoek client, nor do we have any information on the transaction that was done or the type of product/s that the complainant has and why he/she was charged a specific amount for the transaction. Question: Why charge a client for depositing money into his account? Response: The challenge that Bank Windhoek, and all other banks in Namibia face, is economies of scale and to cover our costs to provide banking services. Namibia is a very large country with long distances and a very low population density. Cash handling is a labour intensive and high-risk service. To render services to clients, banks have to pay significant costs to service providers, including cash transportation, security and insurance and also have to maintain its operating systems and invest in the upgrading and security thereof. Why should people make use of banks if the charges are so high?Banks play an important role in any country’s economy. Through the extension of credit such as home loans, SME loans and vehicle and asset finance loans, the economy is stimulated. Banks also provide a safe environment to clients to save and invest their money and earn a return on their savings and investments. Banks are continuously innovating new products and services for the convenience of its clients such as Internet banking and cellphone banking. What can a client do if s/he wants to object to high charges?Bank Windhoek’s pricing philosophy has always been aimed at providing our clients value for their money and in a difficult economic climate, this has never been more important. The annual fee review of Bank Windhoek is therefore designed to contain increases in fees and charges in relation to the inflation rate attributable to the costs of delivering service to our clients. Any client is welcome to contact his/her nearest bank manager to discuss the fees and charges on his/her account. Clients can also visit the Bank Windhoek website to familiarise themselves with the Bank Windhoek fees and charges. What is your bank doing to help your clients pay less charges at reasonable rates?A significant number of clients also still prefer traditional channels such as branches and agencies that are associated with high operational costs. Electronic channels and new technologies are a cheaper option for clients. By making electronic channels cost effective for our customers, we are encouraging them to change their banking behaviour and to make more use of electronic channels, e.g to make us of electronic banking to do transfers versus issuing cheques. Using the available electronic channels such as Internet banking, cellphone banking and ATMs will lower the overall cost of banking for our clients.Bank Windhoek has an array of financial products available and clients can choose the product that suits them best. That is why Bank Windhoek has introduced a range of low-cost products offering a number of free features. These products include SeniorSave, EasySave, Solo (for under 19’s) and Vibe for tertiary students, as well as other products which clients can choose from to fulfil their unique needs. We remain committed to make banking affordable and accessible to more Namibians and will continue to innovate and develop new products and services. We are an active supporter and member of the Financial Literacy Initiative that aims to empower consumers with relevant knowledge about financial matters, enabling them to make informed decisions on their personal finances. Bank Windhoek has taken the lead in 2006 with consumer education with the launch of its Money Matters and Money Matters Hints & Tips series of articles. The Money Matters column is used to amongst others, inform our clients of our range of products and services as well as how they can use their accounts more cost effectively.

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