CBA has recently announced it will be slashing fees for sending money internationally by as much as 70%. This decision will again place pressure on the other Big 4 banks to follow suit, much like CBA chose to abolish ATM fees. CBA customers will now only pay a $6 fee when sending less than $1000 overseas and a $12 fee when exceeding $1000, much lower than the initial $22 fee that was incurred in both cases. However, if the transaction is conducted within branch this will result in a $30 fee highlighting the trend towards pushing banking tasks towards digital.
The decision to ATM fees, lowering international fees and announcing the launch of a new low-rate credit card is all a bid to regain customer trust. When looking at RFi Group data, inconvenient ATM locations is a driver for just over 1 in 10 regarding their likelihood to switch institutions and the incentive of zero ATM fees is ranked highly as an acquisition tool.
"CBA's decision on international transfer fees will again place pressure on the other Big4 banks to follow suit, much like CBA chose to abolish ATM fees...The decision to ATM fees, lowering international fees and announcing the launch of a new low-rate credit card is all a bid to regain customer trust."
On November 10th ING also announced that their Orange Everyday and Orange One cardholders would avoid ATM fees not just in Australia but were to be rebated fees globally, both ATM transactions and international transaction fees when purchasing goods or services online and overseas. To qualify for the offer customers will need to deposit at least $1,000 a month into their account which is already a natural behaviour for ING customers wanting to gain maximum interest rate on their savings account.