Banking for You
Bank customers may have seen a change in their favour as a major UK bank reduces fees.
According a release earlier this week Barclays is offering customers an overdraft penalty of only £8.
Barclays’ managing director of current accounts Mark Parsons said the fee cut was simply a response to customer’s requests.
“We have listened to our customers and acted on this feedback by completely revamping our unauthorised overdraft service, replacing it with the new Personal Reserve,” Mr Parsons said.
“Our customers wanted a simple, clear way of managing payments when they go beyond agreed limits,” he said.
While this is a win for customers some regulatory groups have said it should have been done years ago, and it was only pressure from the Office of Fair Trade that has lead to this result.
But there might be yet another reason, with the tight liquidity markets finally forcing banks to become more customer focused.
Deposits are in greater demand as money available in the markets continues to be limited.
Banks are starting to reduce charges and increase interest rates to attract cashed-up customers.
Also banks were squarely in the firing line of public criticism as more people are forced to sell up and hand over assets to the banks. These are the same institutions that many people blamed for the economic slowdown in the first place.
By cutting charges for customers banks are once again focused on customer relations and striving for positive publicity.
No matter what the rational the objective is the same, to attract more customers and draw more deposits.
Barclays is the first to reduce charges, but it will not be long before more banks follow.
