Big-4 bank tries to recapture market share after losing customers to cheaper competitors
In contrast to FNB and Absa, which announced average fee increases of 2,2percent and 3percent respectively from next month, Nedbank said yesterday that it was cutting its average fees by 6percent from July.
Last year Nedbank announced a 13percent average decrease in its banking fees. It claimed to be the only bank not to increase fees over the past two years.
The initiation of a price war has helped Ned-bank to recapture market share, according to the banking group's head of transactional and investment products Bryan McLachlan.
Reduced fees have led to an increase in transaction volumes, growth in account sales and a decrease in attrition rates.
"We are experiencing a significant turnaround in our primary account numbers, since our pricing changes in July last year," McLachlan said.
The latest yearly pricing review includes price reductions on six fee items, and the scrapping of 12 fee items permanently and six fee items for one year.
"In addition, dozens of previously complicated fee formulae across various products and channels in Nedbank's pricing structure have been simplified, making it easier for clients to understand exactly what they are paying in bank fees each month," Nedbank said.
The bank is dropping its Saswitch fee from R5,99 to R5, giving it the cheapest ATM interconnection fee out of the big four banks.
Smart consumers are choosing to draw money while paying for groceries.
Nedbank's new prices match Pick 'n Pay's Go Banking rates at its tills and those of its sister brands Score and Boxer.
The debit card fee for a transaction will drop to R2 from R3,25, which is what clients currently pay.
Drawing money from tills will now cost a flat R2 instead of a sliding scale of R2,85 plus 90c for every R100.
Nedbank claims to be the only bank to scrap the high transaction penalty fees on Mzansi accounts.