Commonwealth Bank has suspended $3 cash withdrawal fees for some customers after a backlash from Australians who vowed to close their accounts in protest.
Australia's biggest bank has been accused of being “out of touch” and “greedy” over its decision to move all customers with traditional “Complete Access” accounts to “Smart Access” accounts, which include “withdrawal fees”. It was heavily criticized.
Charges start from January 6th Used by customers to withdraw cash at bank branches, post office counters, or over the phone. Free ATM withdrawals will continue, and fee waivers will apply to pensioners, under 18s and those depositing $2,000 a month.
What you need to know about Commonwealth Bank backflips:
- Commonwealth Bank will suspend the migration of some customers with 'Complete Access' accounts to 'Smart Access' accounts, which are subject to a $3 'withdrawal fee'.
- The bank will consult these customers on an individual basis and move them to a new type of account that best suits their needs, including those with no withdrawal fees.
- Existing “Smart Access” account holders will still be subject to a $3 withdrawal fee.
Angus Sullivan, head of retail banking services at CommBank Group, announced on Wednesday afternoon that in response to the backlash, the bank would suspend transfers to new accounts for six months for customers “whose new fees have made their lives worse.” did.
Angus Sullivan (pictured), head of retail banking services at CommBank Group, said the bank would suspend the $3 in-person withdrawal fee for some customers after intense backlash.
Customers with Complete Access accounts were told they would be moved to Smart Access accounts with new rates starting January 6th.
He said the bank would then consult with these customers (more than 100,000 in number) individually and migrate them to a new type of account that best suits their needs.
We understand that customers who already have a Smart Access account will continue to be charged cash withdrawal fees.
“We acknowledge that there has been a lack of proper communication on this matter,” Sullivan said.
He said the switch would continue for customers who would benefit from a new account, but acknowledged the bank had made the change “more difficult than it needed to be.”
The Anthony Albanese government earlier called on banks to lower fees.
“It doesn't seem fair or appropriate, and this is a huge bank making huge profits. Come on, everyone. It's Christmas. We don't need this right now,” Housing Minister Claire O'Neill said. Ta.
“This is not something banks should do and we are asking them to reconsider.”
Commonwealth Bank made a profit of $9.5 billion after tax in the 2023/24 financial year.
Commonwealth Bank has told customers they will have to pay a fee to withdraw cash at branches.
However, the company argued that it was a “challenging commercial model” as it costs around $350 million a year to store physical cash within its network.
The new withdrawal assistance fee applies only to customers who wish to withdraw physical cash in-store.
The government recently announced that it is considering ordering businesses such as supermarkets, pharmacies and gas stations that sell essential goods to accept physical cash payments.
About 94% of businesses accept cash, down from 99% before the coronavirus pandemic.
CBA also removed more than 800 ATMs from its network.
“Five years ago, 43% of all POS transactions were cash. Today, that number is about 15%,” CEO Matt Kamin explained last year.
“Yet, every week, customers conduct more than $18 billion in transactions through the CommBank app, a 64 percent increase in just two years.”
He said CommBank's 10 million customers pay about $40 each to cover the $400 million cost of keeping physical cash in circulation within branches.
“Many of our customers don't use cash, and those customers cross-subsidize those who do,” he said.
Earlier this year, Armaguard, Australia's largest cash distribution service, was on the brink of collapse until receiving a $50 million bailout from major banks and major retailers in late June.
