News

Banking fees getting squeezed and Hong Kong among the top markets impacted

Wednesday 11 March 2020 11:03 CET | News

Accenture has released a global report detailing the impact of increased competition and regulation on banking fees, with Hong Kong as one of the markets that were studied.

Retail banks in Hong Kong are among the most impacted in the study, with up to 7% of their revenue in the next three to five years at risk (behind only Australia, with up to 9%, and the UK, up to 8% of retail banking revenue). Still, banks in the city have a big opportunity if they become trusted advisors to customers and offer value-added services, which could help them capture up to 12% in incremental revenue in the coming years, more than making up for the lost fee revenue.

Additional survey data:

  • 72% of Hong Kong respondents have more than one bank account (vs 58% global average and 56% in the US);
  • 52% say they encounter difficulties with their bank (vs 36% global average, 40% who said the same in Australia, 27% in the US and 22% in the UK).

The three most cited difficulties globally were that banks apply unfair fees and commissions on their products, the way banks price their products is not transparent, and banks don’t help with all of their clients financial needs.

  • 72% of respondents in Hong Kong said they would pay an extra fee to get additional services from their bank (compared with 55% global average, 60% in Australia, 48% in the US, 46% in the UK and 43% in Japan)

The three most cited services that Hong Kongers would be willing to pay were (in order):

  • automated savings/investment tools where a fixed percentage of customer money is automatically moved from current account into saving accounts and/or investment products;
  • discounts on daily expenses, based on spending patterns;
  • long-term planning to help meet customers’ long-term plans.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Accenture, study, banking, fees, account opening, retail banking
Categories: Banking & Fintech
Companies:
Countries: Hong Kong
This article is part of category

Banking & Fintech