Why does this legitimate option receive so much criticism? In my opinion, it is primarily a transparency issue. Were they not charged before? For the most part, that was the case, offsetting the total or partial lack of payment with income from other business sources, such as the interest margin. Ultimately, this free provision of banking services became just another commercial tool. However, this can create misconceptions in the client’s perception of the price of the service. Naturally, it also affects the estimation of the actual cost the bank assumes in providing it: from technological to human costs. <\/p>\n
In the first instance, consider the cost of ATMs, point-of-sale terminals, and all those costs required for the clearing of payments or securities that form the basis of the financial service provided by financial institutions. It is not uncommon to find cases in life where services that are not charged for, no matter how good they are, are not valued by those who receive them. <\/p>\n
Banks must explain that a good service requires an appropriate payment to maintain it and a reasonable profitability to improve it. And clients must know the value of the financial service they receive. Good communication from banks, under conditions of total transparency. <\/p>\n
I am convinced that, under these assumptions, the opposition to paying commissions observed in many bank clients would be reduced. In fact, this would also allow them to compare entities, seeking the best quality-to-price ratio for the service provided. Nevertheless, remember that banks are obliged to communicate the commissions they charge clients for the various services provided. <\/p>\n
Based on data from the end of last year, commissions from Spanish banks accounted for 22% of total income. This percentage is lower than the Eurozone average, which stands at 28%, and also lower than the levels of the three main countries in the area. I know you will tell me that comparisons can always be challenged, considering, for example, that in Spain we speak of clients while in many European countries they refer to users. But, as I said before, the final decision on whether or not to charge commissions will depend on the banks’ cost structure on one hand and their commercial policy on the other. Transparency regarding the costs assumed by banks in providing financial services could also help them in their relationship with new operators who are now also part of the competition. Transparency in commissions, competition, and the client’s freedom of contract are key for the client to achieve an optimal relationship with the financial institution. <\/p>\n
And undoubtedly, it will also mean a significant improvement in the image of banks for society. Here I am speaking of the Sector, since as I mentioned at the beginning, the image of the individual bank held by its client is very positive. On the client’s part, issues such as security and trust in the relationship with their bank must certainly be weighed against the cost of commissions when evaluating new competition from non-deposit institutions. <\/p>\n