The Commonwealth Bank (ASX:CBA) has nearly immediately rescinded plans to charge its banking customers $3 to withdraw their own money at branches or the post office after a groundswell of outrage across the country.
The biggest bank in Australia drew ire through this week after unveiling plans to move existing customers into a new account with a $3 withdrawal free.
Around 10% of current “Complete Access” accountholders would have been impacted; CBA has had around one million customers using the legacy account since 2016.
The bank originally defended its controversial plans – which were pencilled in to go live from January 6 – through a widespread storm of condemnations before evidently deciding to kowtow to Aussie accountholders. Never say never though apparently; CBA’s charge plans are only “paused,” the company said today.
The big four bank will now spend six months speaking to customers about the idea.
The main topic will, of course, be how the preferred “Smart Access” accounts can improve.
While that sounds nice in theory, this Market Online journalist would be surprised if they hear much positive feedback considering this week’s outrage.
Before the backflip, Housing and Homelessness Minister Clare O’Neill told Sunrise the fee seemed “really unfair” while Assistant Treasurer Stephen Jones dubbed it “a kick in the guts for ordinary Australians.” Those same ordinary Aussies Mr Jones defended called the bank’s surprise play “greedy” and “pathetic.”
Many consumers across social media suggested they’d be closing their CBA accounts.
The bank’s head of retail banking services, Angus Sullivan, has since apologised for how the Commonwealth Bank went about the rollout in a snap Wednesday presser.
“Clearly, we’ve done a poor job of communicating aspects of this change for our customers,” Mr Sullivan stated in the CBA meeting earlier today.
In a statement shared to HotCopper and other media outlets, Mr Sullivan said: “The changes taking place are such that the approximately 90 percent of customers we intend to move, and who we expect will be better off or the same, will be moved to the lower monthly fee account. If those customers don’t want to move, they can contact us to discuss their options.
“For the remaining customers, we are changing our approach and we are pausing the migration. Instead, we will contact these customers over the next six months to discuss the most appropriate product for them given their needs.
“The changes outlined above do not affect approximately nine million CommBank customers who are not on the Complete Access product.”
The Commonwealth Bank bigwig added in the presser earlier in the day that the company had considered account changes “can be difficult, especially at this time of year” as well as the fact many Australians are facing mounting cost of living pressures – but perhaps not nearly enough.
He also conceded the bank simply made things “more difficult… than we should’ve.”
Commonwealth Bank shares dropped 0.94%, to $156.29, after the conference.
Updated Wednesday, Dec. 4, 6:04pm AEDT: Corrected data about the bank’s “Complete Access” accounts; how many would be impacted and when the account was last offered.
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