Banks fees 'constant cause of angst'

The removal of several bank account and credit card fees has helped to improve the National Australia Bank's reputation, it has been suggested.

Moves by one financial services provider to reduce and abolish a number of its bank account charges has gone a long way in improving its image, the firm's chief executive claims.

In comments made at an Australia-Israel Chamber of Commerce event, Cameron Clyne of the National Australia Bank (NAB) points out that the decision to remove various account and credit card fees has helped to improve the lender's reputation with customers.

"One of the goals I set for myself was improving the reputation of the bank. The first thing we set out to do was deal with fees. Fees are a constant cause of angst," he notes.

Following the Australian banking moves - which were first announced in September with the decision to abolish overdrawn account fees - Mr Clyne indicates that the number of customer complaints dropped 40 per cent in the space of a month, the Australian Associated Press reports.

He adds that customer satisfaction has also increased, something that could prove of interest to those looking to compare accounts in order to make the most of their money.

Other steps by the firm resulted in the removal of account service fees on two of its retail transaction accounts and the scrapping of card fees for exceeding credit limit or being late with payments.

As the bank released its annual trading figures last month, Mr Clyne pointed out that the fee cuts will place the organisation "in good stead as markets recover" and help it to foster strong relationships with its customers.

However, NAB has not been alone in reducing rates, as Westpac revealed that from October 1st, all exception fees across its entire range of credit cards, savings and transaction accounts were to be cut to $9.

Affecting the bank's five million personal banking and business customers, group executive Peter Hanlon claimed the reduction was "the most significant move on bank fees" to have been seen for several years.

By Emma North