ANZ and Westpac won't drop 'other bank' ATM fees in NZ like Aussie despite billions in profits

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Both ANZ and Westpac say they will not follow their Australian arms and drop 'other bank' ATM fees despite making billion-dollar profits - a move Consumer NZ says is "unreasonable".

Four of Australia’s biggest banks have done it, should New Zealand follow suit?
Source: Breakfast

Four of Australia's biggest banks decided on Sunday to stop charging customers of other banks an AU$2 fee to withdraw cash from their ATMs.

The Commonwealth Bank was the first to abolish the fee, and ANZ, Westpac and NAB soon followed suit.

Kiwi banks under pressure to drop other bank ATM fees in wake of Australia move.
Source: 1 NEWS

The move comes as political pressure mounts on banks, with some calling for an inquiry into the fees they charge.

ANZ made a yearly profit in the year to September 30 2016 of AU$5.7b (NZ$6.2b) while Westpac's was AU$7.45b (NZ$8.14b).

An ANZ spokesperson yesterday told 1 NEWS the bank will not drop their $1 non-ANZ ATM fee in New Zealand.

"The cost and revenue structure of ATMs in Australia is different to New Zealand," the spokesperson said.

"ANZ has invested heavily to ensure its customers can access NZ’s largest ATM network and enjoy fee free withdrawals.

"Fees for customers using other banks’ ATMs are also lower in New Zealand than was charged in Australia.

"All our fees are constantly under review to ensure we are competitive."

A Westpac spokesperson confirmed they are also not dropping their $1 fee.

"Westpac NZ is looking at the developments in Australia with interest," the spokesperson said.

"We need to consider the charging arrangements between banks in New Zealand which are very different to those in Australia, and certainly more complex.

"This year we removed or reduced 11 banking fees in direct response to customer feedback, ensuring our fees are fair and easy to understand."

Consumer NZ CEO Sue Chetwin, speaking this morning to TVNZ's breakfast programme, said that isn't god enough.

"We just think they should be following suit here," Ms Chetwin said.

"It would be really easy, same ownership - just do it.

"If you were just Eftpos'ing [and] getting cash out, there would be no charge - so why does the bank need to charge a fee?

"I think it is unreasonable."

Commenters on the 1 NEWS Facebook appeared to largely support the removal of the fee.

"There [aren't] ATM machines for all banks everywhere ... why should we pay more? They already take enough from us," wrote one.

"Yes! I get charged at least $10 a month for other ATM fee and the closest Kiwi bank ATM is 20-30 mins away from home!" said another.

"Charged to get to your own money ... the banks are some of the biggest criminals out there."

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