Australian Households Are Paying Too Much For Their Banking Services

Sydney — Fujitsu Australia and New Zealand, a leading service provider of business, information technology and communications solutions today released its 2009 Banking Fee Benchmark Report.

In the latest edition of Fujitsu Consulting’s Banking Fee survey we have again compared the typical fees paid by Australian, British and American households.

We found that Australians are paying on average 22% more than British households and 11% more than American households.

“We have some of the most expensive banking services in the western world” said Martin North, Managing Consulting Director of Fujitsu Consulting. Australian Banks will take an estimated 5,000 million in fees this year and in the past few years fees have risen well above the annual inflation rate.

“The average household is in our view paying up to $200 more each year than they should, thanks to the wide range of fees and charges levied in Australia, and to the lower levels of competition in the market” He added.

We believe there is opportunity for Banks to drive significantly greater efficiency from their back office business processes, and cost savings of between twenty and forty percent are achievable.

We believe that Bank Fees should, from a policy perspective be more accurately aligned to the costs of providing the specific service, and that recent reforms in the UK are highly relevant.

We believe consumers need to be more informed about the range of charges and fees they incur. Our focus groups highlighted the apathy which stems from consumers not realising the full impact of fees which are levied. We particularly noted the ongoing rise of conditional fees which are hard for consumers to assess ahead of time. As a result many consumers will not be able to make an informed decision with regards to a product purchase.

Finally, whilst we recognise the importance of a strong and vibrant banking sector – especially in the current global conditions - we do not think this should detract from action to push down hard on banking fees in Australia.

The full report is available on request, or via our website here: https://www-s.fujitsu.com/au/whitepapers/fujitsu_consulting_bank_fee_report.html

About Fujitsu Limited

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3 trillion yen (US$53 billion) for the fiscal year ended March 31, 2008. For more information, please see:
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Fujitsu Australia and New Zealand

Fujitsu Australia and New Zealand is a leading service provider of business, information technology and communications solutions. Throughout Australia and New Zealand we partner with our customers to consult, design, build, operate and support business solutions. From strategic consulting to application and infrastructure solutions and services, Fujitsu Australia and New Zealand has earned a reputation as the single supplier of choice for leading corporate and government organisations. Fujitsu Australia Limited and Fujitsu New Zealand Limited are wholly owned subsidiaries of Fujitsu Limited (TSE: 6702).
For more information, please see: au.fujitsu.com