Nov 2009 Financial News

NCB increases ABM fees by 23 per cent...But Scotia still the most expensive

Nov 02, 2009

National Commercial Bank (NCB) last month increased the withdrawal fee for its Automated Banking Machine (ABM) from $15 to $18.50, a 23 per cent increase.

It is the second highest among local commercial banks surveyed by Sunday Finance - Scotiabank is the highest while RBTT Jamaica is the lowest.

NCB says that the cost of its ABM fees generally reflect the cost of providing the service and in some cases is "merely a contribution" to the cost of providing the service. The bank adds that despite the increase, the fee is actually very competitive, and is bang-for-the-buck considering that the company offers unique value-added services to its clients.

"The monthly three free ABM withdrawals is also in place and customers may even choose to enjoy all ABM withdrawals and other electronic banking transactions free of charge when they sign up for our Midas Plus package," notes Sheree Martin, senior assistant general manager, Group Marketing and Communications, of NCB.

The NCB Midas Plus facility is an electronic banking package that allows customers to conduct routine transactions such as withdrawals, deposits and bill payments free through the electronic channels.

Scotiabank's customers pay $30 per transaction at its ABMs and $45 at non-Scotiabank terminals. The bank, however, offers a respite to customers whose minimum balance does not fall below $25,000. They get seven free transactions per month.

Simone Hull, Scotiabank public relations specialist, points out that, despite the appearance of higher fees, Scotiabank's ABM fee is in line with current market rates.

"Earlier this year we conducted a Self Service Banking channels competitive analysis and we found that for the most part our pricing for ABM services were in line with our competitors, we may be higher is some respects but are also lower in others," she says.

Scotiabank, however, would not say whether their fees would see an increase this year. "The matter of pricing of our ABM services to customers is not much different from pricing of any other service that our bank offers. In order to remain competitive in the market place our ABM fees are reviewed annually, which mean that sometimes they may or may not change," Hull said.

The bank was also unwilling to compare its rates with those of the other banks.

"We are not able to comment in detail on how other companies charge for their products and services. We do know that company structures differ and this affects their decision-making processes in terms of fees and charges," Hull said.

RBTT offers much lower rates however, with charges of $10 per ABM transaction at its terminals and $37 for transactions at non-RBTT terminals.

First Caribbean charges $15.50 per transaction at the bank's ABM.


Source:
Alicia Roache
roachea@jamaicaobserver.com
Sunday Finance Reporter
Jamaica Observer
Sunday, November 01, 2009

http://www.jamaicaobserver.com/magazines/Business/html/20091031T200000-0500_162909_OBS_NCB_INCREASES_ABM_FEES_BY____PER_CENT.asp