Tuesday, May 02, 2006

Barclays goes simple

Kenya’s largest bank, Barclays, is the latest bank to embrace the flat fee banking concept. Barclays bouquet has three options; for 490 shillings per month (includes free ATM withdrawals, VISA card, statements and transfers) for 590/= (add chequebook and telebanking) and for 1,200/= per month (add free OTC withdrawals and access to Prestige banking centers).

The attraction of flat fee banking is a basket of offerings to customers for a simple, single monthly fee as opposed to the myriad of individual bank charges for everyday services that frustrate customers and add up to several hundred shillings a month reducing customer savings.


Prousette said...

There are two charges I have never agreed with.
First why should a bank charge me say 300 shillings to withdraw MY money over the counter? What is the logic behind this? From your inside knowledge of how banking works maybe you might enlighten me.

I also think ATM fees should be pegged on the number of withdrawals one makes for example you may withdraw twice every month for free and then any number of times above that may be charged.

bankelele said...

Prousette: I thinnk banks charge OTC fees because they have given customers a 'cheaper' option (ATM) and expect that to be used instead of 'expensive face time' with a teller inside the banking hall.

Also it's tricky to have the bank's software differenciate between 2 free atm transactions and then start counting/charging for additional ones - much easier to charge nothing, or for each transaction

Mimmz said...

About time the banks made a flat fee for all bankers. Agreed, occupational hazard maybe, but if there exists technology that should reduce the need for extra FTEs then everyone that opts not to use that technology should be charged for it. Are they working on online full service access? Including scheduling and paying bills, transfers and new account openings? That would realy make a difference even to their internal operations and it's the cheapest most effective option ever!

Anonymous said...

Thanks for information as usual on 'money front' - I always frequent here for 'economic advice'. Thanks also for a 'walk through' kengen, shares and all
(hint to KBW - need for Best blog on economic advice!!!)
on OTC and ATM charges I think given the rise in muggings at ATM withdrawal points I would like to switch my main account back to OTC for safety(the muggers have gotten so good at night they read the balance and if there is enough bucks they walk around with you till midnight so as to withdraw the limit for the next day!!)

Lawyer in the Making said...

thanks so much for that info...what about charges for wire transfers from abroad.I wired my mathe some cash through her bank, National Bank of Kenya and the wire transfer fees were nothing less of atrocious.

bankelele said...

Mimmz: Very few banks have online full service access (CBA, NIC, D-Trust) but I don't think Barclays are pursuing that.

Anonymous: Thanks, always be careful around ATM's,

Lawyer in Making: The flat fees cover a narrow range of commonly used services only. Transfers are always expensive.


Related Posts with Thumbnails