The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Another Danish Bank, Jyske bank joins Danke bank to charge for the pleasure of having a bank account with them

Tuesday, 22 January 2013
New forms of payment for a bank account is spreading across the Danish banking sectors and it is causing stresses among customers. After Danske Bank imposed a charge or a fee for owning an account with them, Jyske Bank has followed the approach too.

As customers flee Danske Bank in search of other cheaper banks suitable to take their businesses to, it turns out that Jyske Bank is not an obvious choice. They are the next big player in the banking market ready with the introduction of payment for having a current account according to various Danish media reports.

As from February, it will cost Dkr 400 to open a checking account with Jyske Bank following Danske Bank's decision to charge for bank accounts. In addition, customers will have to pay Dkr200 a year for administration costs. Last weekend Danske Bank announced that they will begin to charge customers for bank accounts and said that the fee charging would be rolled out to other markets where they have branches such as Sweden.

Jyske Bank say they knew that there would be discontent among customers but are not worried about the unpopularity of their decision.

"I think what we are doing is to find out the needs of customers. Customers with limited activities in the bank just need an account, we offer this product, other customers have different needs," says Claus Bo Pedersen, Head of Private Banking at Jyske bank to Danish TV2.

Bo Pedersen continues that "to establish a new basic account where the need is a simple account to deposit money into, will costs Dkr400 to create. Then it costs Dkr50 in the quarter as administration fees."

Danske bank customers are not taking the posturing kindly and over half of Danske Bank's customers are on their way out of the bank after the news that the Bank intends to introduce levies on bank accounts, according to a survey conducted for Danist TV2 and 3.
Most likely, the majority of customers who choose to leave the big bank will go to the smaller regional banks, which they are more personal connection to, reports TV channel.

Since in Denmark, owning a bank account is almost a requirement to meet the quality of the way of life in the country, it could means that customers would be imposed a cost which the banks will do because they have more power to do so and customer have limited choices.

So the Danish government talked about the issue but both the government and the opposition agreed that banks have the right to determine what fees they want for their services. That it is the customers who'll decide where they want to do banking given that banking is an open sector in Denmark and competition drives the market.

"We would like to avoid legislating in this area," says PM, Helle Thorning-Schmidt.

Another politician, Margaret Vestager told news agency, Ritzau that "Banks should run their business like a business. As a customer, you'll take a position, if you want to be a customer of the business. If you do not like the way it is run then you can move your business elsewhere."
by Scancomark.com Team

We welcome your contribution. Did you find anything wrong with this article? Do you want to contribute to our news network? Do have a news tip or assist us with a correction