‘The worst Christmas present ever’: CommBank delivers PR blunder just in time for the holidays
The Commonwealth Bank is introducing a $3 withdrawal fee that will inordinately impact the elderly and those in under serviced regional areas – and it’s decided to announce it just before Christmas.
UPDATE: ‘We didn’t get the communication right on this’: CommBank backflips on controversial fees
In the new year, Commonwealth Bank customers who currently have a Complete Access account will be moved to Smart Access accounts, and charged a $3 “assisted withdrawal fee” each time they take out cash from bank tellers, post offices, or by phone.
The Smart Access account is the bank’s most popular everyday account, and also includes a $4 monthly fee for accounts that don’t have $2,000 deposited each month.
The withdrawal fee will be waived for customers under 18 and those on a pension.
Not surprisingly, this news was met with widespread disdain for the brand, which made a profit of $9.5 billion during the latest financial year.
The Financial Services Union’s national secretary Julia Angrisano called this “an unnecessary and greedy grab”.
“In a cost-of-living crisis, every cent counts and $3 is a significant hit, especially for customers on low incomes, pensions and benefits,” Angrisano said in a statement.
“It is an unnecessary and greedy grab from a bank that’s making plenty while also cutting costs.
“Australians should be concerned that the CBA has been allowed to operate with impunity closing hundreds of branches, sacking staff and axing ATMs and now introducing a massive new fee for cash.
“Australians — whether they’re customers or staff — are getting screwed by the big banks, who are making plenty of profit at the expense of their customers, communities and staff.”
Finance Minister Katy Gallagher told ABC News Breakfast the Government is “having a close look” at the fees.
“I think that this type of charging and looking at $3 per transaction, I think, it’s really hard, and particularly for those customers that have those types of accounts and want to go into the branches,” she told ABC News Breakfast.
“So we’re having a close look at this… I would really think that some goodwill here just before Christmas is for the CBA to have a think about the announcement that they made yesterday.”
Financial services minister Stephen Jones called the decision “the worst Christmas present ever”.
“This increased tax on Australians’ right to cash is a kick in the guts and the worst Christmas present, he wrote on X.
“The Government has announced that we will guarantee the right to access and use cash and crack down on unfair surcharge fees for using your own money.”
Jones told the ABC the new CommBank fees seem to be “a tax on Australians who demand the right to use their cash”.
“The Government won’t stand for it. We’re working for Australians to ensure they can continue to use cash if they so choose. So we say to the Commonwealth Bank – this is the worst Christmas present ever.”
Stephen Jones
Complete Access accounts haven’t been available to open since 2006, with the bank telling the ABC that only 20% of those with the account use “assisted withdrawal”.
Last month, the Government announced laws would be introduced that require business to accept cash for “essential items” such as fuel and groceries, with ongoing Treasurer Jim Chalmers declaring, “there is an ongoing place for cash in our society”.
Commonwealth Bank CEO, Matt Comyn, has indicated the bank’s wish to get away from dispensing physical money, telling a Senate inquiry earlier this year that keeping cash available costs the bank “approximately $400 million each year” – as if this is a charitable service they offer, rather than the cornerstone of their entire operation.
This morning on Sunrise, Housing and Homelessness Minister Clare O’Neil said the new fee is “really unfair to customers, to Australians, especially just before Christmas”.
“Everyone’s had a bit of a tough year on the cost-of-living front and last thing they need is a kick in the guts from the Commonwealth Bank right before Christmas,” O’Neil said.
“Come on, guys. It’s Christmas. We don’t need this right now. This is not something the bank should be doing and we’re asking them to reconsider.”
Matt Comyn
Shadow Finance Minister Jane Hume went one step further, telling Sunrise she will be closing the account she’s had since university.
“It’s ridiculous and customers will speak with their feet,” she said.
“There is no doubt about it. Including myself, actually – I have a Commonwealth Bank account. I’ve had since it since I was at university. I will be shutting it because of this decision.”
Shadow Energy Minister and regional MP Ted O’Brien also took to ABC News Breakfast to air his thoughts, explaining how those hit with the closure of a local Commonwealth branch in his area would now be in line for these fees.
“I’m thinking about those same senior citizens who are struggling because, all of their life, they’ve become accustomed to walking into a branch, he said.
“I think, for them to be stung by $3 is certainly worthy of a serious rethink on behalf of the bank.”
The Commonwealth Bank said the new fees were just “part of our commitment to provide the best available banking experiences”.
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$9.5 million profit,and still they want to gouge more.
Such arrogance and greed.
Doesn’t apply to under 18 or those on a pension. We moved to a largely cashless society a long time ago….who goes into a branch and gets cash…that some stores don’t even accept.
I’m sure that there will be some people affected – but there are also plenty of alternatives
My only conclusion is that the bank must be about to commit some really dastardly deed and has thrown this out there as a smoke screen.
This is a poor business decision with negative reputation impact. Not a “PR blunder”.