October 29, 2018

BSP ceases Bank Service fees

Up to K20 million will be forgone in 2018 in relation to bank service fees previously charged by Bank South Pacific.
A host of banking charges were either forgone entirely or reduced earlier in September this year.
“We have also been able to announce within the last month or fee reductions with BSP in regards to our customers and the annual revenue forgone for those particular fee reductions will be in the vicinity of around K20 million from the time they are announced.
“As we pointed out in some of the public announcements made with those fees.
“In large we have been looking to rationalize our deposit products as we move towards our new banking system in 2020.
“One of the older accounts which we are moving customers away from has been the old Kundu Saver account where customers will get charged K3 a month whether they use the account or not and we are now migrating customers to another packaged account where you are able to get transactions with that K9.50 a month or you go to a, Pay As You Go account, which charges you based on the transaction usage without any monthly fee,” BSP CEO Robin Fleming said.
He said reductions will continue for reduced and eliminate transaction fees, dormant account fees, including some loan service fees, where customers who have had residential property loans where there would have been a fee on top of the interest rates.
“There are no fees registering with any of our mobile banking and any of our internet banking, rather electronic and digital offerings.
“We are ensuring profitable return for our shareholders as much as possible for our customers’ perspective, hence the migrations to accounts which are very competitive in the market place and we don’t charge the fees associated with those.
“We will continue to pass on the benefits to our shareholders with a strong interim dividend which we paid (over a week ago) at at 32t per share as part of over K160 million.
“We still remain the largest non-mining tax payer in the country and endeavoring as much possible customers benefit from our low cost offerings,” he said. Post corier/one png

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