By Gareth Vaughan
Mobile banking may be growing fast, but 74% of customers aren't prepared to pay any fees at all for mobile banking services, according to a Deloitte survey out of the United States.
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Why on earth would i pay fees to use internet banking on my phone? Would the banks prefer i came into the branch to do all my payments?
No, they would not. They want to minimise face to face with clients. It eans they can reduce staff, and reduce branches and so save on lease/rent costs....
Fees are now the only way Banks can raise their income stream - what with mortgages being so competitively priced. And there's only so much essential staff (pardon me, "resources") you can "let go" before it starts impacting on the ability of the Bank to run.
I mean, CEOs and senior management need their multi million wages - the heavens might fall in, otherwise.
They'll all point at the share price, and the need to drive that up, but they're not actually redesigningtheir business model to make a more sustainable profit. They're chasing short term gain by "trimming the fat" (sacking staff) and charging fees.
Plus ça change....
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