The pandemic has accelerated the inevitable changes in the banking sector. Customers must prepare for fees. In the opinion of the president of mBank, the model in which banks do not charge fees for services so far free has come to an end.
– The zero-cost bank model has come to an end for many reasons, not even falling interest rates. Banki they have to start charging for certain types of services, because we are also in a situation where sooner or later we will be asked how we value certain types of services. The labor-intensity of services and the systems that we have to finance, as a rule, must be priced somehow – admitted Cezary Stypułkowski during the Banking Forum 2021.
Employee salary commissions
At the same time, he pointed out that mBank has been systematically verifying the tables of fees and commissions for several years, which results in a significant increase in commission income, although “customers don’t necessarily like it, but they need to get used to it“.
– I have always believed that we should earn commission income at the cost of employing employees. This is what I have been guiding for 25 years and this is the minimum that the bank must meet – emphasized Stypułkowski.
The hardest thing in cooperative banks
The president of mBank added that the decline in interest income in sector it is progressing, but it is most visible in cooperative banks.
– Interest income in various banks varied (in 2020 – ed.), But even if you defend yourself, let’s be aware that the decline in interest income in the sector exceeded PLN 2 billion, of which more than 1/3 in my opinion is attributable to banks cooperatives, which have 7 percent. market share. This shows the scale of the problem that arises there. Is it possible to compensate for commissions and fees? I doubt it, ‘said Stypułkowski.
According to him, one of the biggest challenges facing the banking sector is explaining to customers what they are paying for. – Fees and commissions will increase and we have to prepare for the fact that we will have to be able to explain it – Stypułkowski noted.
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