Australia’s Commonwealth Bank has scrapped its $2 ATM fee, making it free for people to withdraw money from its machines, regardless of which bank they are with.
The major bank rolled out the change across its 3400 ATMs Australia-wide on Sunday.
The Commonwealth Bank’s axing of the $2 fee has put its competitors under pressure to follow suit.
The major bank rolled out the change across its 3400 ATMs Australia-wide on Sunday
The shock move is expected to cost Australia’s big banks tens of millions of dollars each year.
The axed fee will save consumers $500 million annually.
Consumer group Choice spokesman Tom Godfrey said the bank’s decision could mark the beginning of the end for the $2 ATM withdrawal fee.
‘Accessing your money from a bank account is an essential service that should be free for everyone, rather than an inconvenience with a penalty attached,’ he said.
Consumer group Choice spokesman Tom Godfrey (pictured) said the bank’s decision could mark the beginning of the end for the $2 ATM withdrawal fee
‘The move by the Commonwealth Bank to stop charging non-customers to withdraw money is a win for consumers and sends a clear message to other banks that it’s time to axe these fees.’
Australians reportedly spent $500 million in ATM fees in the past year alone.
Commonwealth Bank of Australia’s group executive of retail banking services Matt Comyn said the move to axe the fee was prompted by consumers’ disapproval.
‘It’s very unpopular and I’m sure people will be happy that they no longer have to pay it and to have access to the largest ATM network in the country for free has to be a good thing,’ he said in a statement on Sunday.
‘As Australia’s largest bank, with one of the largest branch and ATM networks, we think this change will benefit many Australians and hopefully demonstrate our willingness to listen and act on customer feedback.’
Commonwealth Bank of Australia’s group executive of retail banking services Matt Comyn said the move to axe the fee was prompted by consumers’ disapproval
The move follows a string of scandals for the bank, including its newly offloaded life insurance, which was revealed to put profit before sick and dying people.
The bank was revealed to be selling life insurance policies with outdated medical definitions, which made it difficult for its customers to make claims.
The bank also faced forgery and fraud accusations, sparking a senate inquiry and royal commission into the bank’s planning division.
The Australian government accused the bank of widespread breaches of money-laundering and counter-terrorism financing rules, according to reports in August.
The move follows a string of scandals for the bank, including its newly offloaded life insurance, which was revealed to put profit before sick and dying people
Financial intelligence agency AUSTRAC said it had initiated civil penalty proceedings in the Federal Court against CommBank for ‘serious and systemic non-compliance’, in the biggest case of its kind in Australia and the first against a major bank.
‘The effect of CommBank’s conduct in this matter has exposed the Australian community to serious and ongoing financial crime’, AUSTRAC said in a court filing.
Australia’s biggest mortgage lender failed to report suspicious matters ‘either on time or at all involving transactions totalling over A$77 million ($61 million)’, AUSTRAC said.
The agency alleged 53,700 contraventions of the anti-money laundering and counter-terrorism financing Act, particularly with regards to so-called intelligent deposit machines, or IDMs.