Bank enters pricing fray

04 December 2012 - 02:06 By BDlive
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Nedbank. File photo
Nedbank. File photo

Nedbank said it will forfeit an estimated R67-million annually in non-interest revenue by scrapping all non-cash ATM transaction fees, such as balance inquiries and prepaid purchases.

That is part of a strategy to retain and grow the bank's customer base as pricing is becoming a differentiator among the big four banks.

At about 5.6 million clients, Nedbank has the smallest slice of the banking pie. Its new growth strategy is to target the low end of the market.

As banks cut fees, pressure on them mounts to up customer numbers and to attract quality transacting clients to offset non-interest revenue losses.

The new pricing structure will be effective from the start of next month. Nedbank also said it will reduce cash deposit fees.

The bank's pricing announcement came just two days after Standard Bank said it will not increase fees next year for a second year in a row.

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