Thursday, December 19, 2024

Three quarters of adults frustrated with high bank fees

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Three quarters of Irish adults are frustrated with high banking fees for basic services such as account maintenance and ATM withdrawals, according to new research.

One in four also believe there is a lack of transparency with banking and international fees.

Results from the second annual State of Irish Banking Report, conducted by Censuswide on behalf of fintech company Wise, reveal a shift away from standalone traditional banking services.

Just one in five now use traditional banking services alone, down 6% from last year.

In contrast just over a third now prefer using only app-based financial services.

The remaining 49% surveyed said they are hybrid customers and use both.

Other frustrations identified by respondents in relation to traditional banking include a lack of competitive interest rates, poor customer service, costly and slow international transactions and a lack of transparency on fees.

“We are witnessing a tipping point for banking and fintech in Ireland,” said Harsh Sinha, Chief Technology Officer at Wise.

“The 2024 State of Irish Banking Report highlights how high fees and outdated processes are driving momentum for faster, more competitive, transparent, and consumer-friendly financial providers in the market.”

The report also identified how Irish customers feel ripped off for spending abroad.

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The research by Wise, which specialises in global money transfers, said 79% of those surveyed want simple solutions to transfer and spend money abroad.

According to the results there was a 12% year-on-year rise in the number of people now using digital payments when travelling.

Wise said that competition and innovation is a concern for customers.

61% cited faster transactions as their favourite thing about digital payments.

Over half of Irish adults using app-based providers rely on them for everyday shopping.

“Our research shows that Irish people want to see banks increase their use of fintech solutions and provide simpler ways to manage their money,” said Roisin Levine, Head of UK & Europe Partnerships at Wise Platform.

“This isn’t just about modernisation – it’s about creating a financial ecosystem that matches the pace and innovation we’re seeing across Europe,” she said.

“Both banks and fintechs have a crucial role to play in delivering the technological advancement that consumers now expect,” she added.

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