CBA Cuts Fees To Win Back Customers

After being stung by criticism of its interest rate rise last year, the Commonwealth Bank is trying to win back customers by scrapping fees across a range of home loans and savings accounts.

By temporarily removing mortgage establishment fees, the bank is hoping to regain the trust of their customers.

Changes in other banks

Westpac took equivalent steps last year by scrapping a range of upfront mortgage fees; they have now extended the offer till May this year.

National Australia Bank is planning to review their upfront pricing on home loans and deposits.

The ANZ bank is due to release their $100 million dollar revamp of their internet banking system shortly.

Westpac will reportedly be spending $2 billion over the next few years to overhaul their technology to boost their mobile and online services.

CBA Satisfaction Ranking declining

Research recently conducted by Roy Morgan Research has shown that in November CBA's satisfaction ranking among home loan customers slumped to its lowest level in five years.

Ralph Norris, Commonwealth Bank boss told a senate committee recently that rising funding costs had started to pressure profits, and that CBA made their decisions based on commercial reality.

Smaller lenders have been cutting their exit fees, and the NSW non-bank lender State Custodians have introduced flat fees across mortgages stating that this will help them become more competitive.