The Thai Bankers' Association (TBA) is mulling a new fee structure for the industry, with higher service costs for banks possibly passed on to customers.
TBA president Payong Srivanich said bank members have discussed a new fee structure in line with operating costs. Banks plan to consider the operating expenses of both traditional and digital banking services before finalising a new fee structure, which will include discussions with the Bank of Thailand.
The current fee structure for the industry is distorted and does not reflect operating costs, said Mr Payong. For example, there are higher costs for branch services, but banks do not charge fees for this channel.
In addition, Thailand is the only country in the world that does not charge a fee for digital payments, he said.
Banks invested heavily in technology infrastructure, including security systems, which lead to higher costs for the sector, said Mr Payong, who is also chief executive of Krungthai Bank (KTB).
"Higher costs may pass through to customers at reasonable prices. With a new fee structure, banks would gradually balance the fees charged for each channel, transitioning from a cash-intensive society to a cashless society in the long term," he said.
https://www.bangkokpost.com/business/25 ... t-expenses
Banks are the scourge of the earth - do you see them passing on interest rate increases to consumers? No, they make billions in profit out of charging more for borrowing.
It won't matter much to us as farangs won't eligible for bank accounts here when they digitize everything.
Banks consider new fees to reflect expenses
Banks consider new fees to reflect expenses
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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Re: Banks consider new fees to reflect expenses
Should make the annual visa extension interesting!!buksida wrote: ↑Fri May 12, 2023 7:33 am The Thai Bankers' Association (TBA) is mulling a new fee structure for the industry, with higher service costs for banks possibly passed on to customers.
TBA president Payong Srivanich said bank members have discussed a new fee structure in line with operating costs. Banks plan to consider the operating expenses of both traditional and digital banking services before finalising a new fee structure, which will include discussions with the Bank of Thailand.
The current fee structure for the industry is distorted and does not reflect operating costs, said Mr Payong. For example, there are higher costs for branch services, but banks do not charge fees for this channel.
In addition, Thailand is the only country in the world that does not charge a fee for digital payments, he said.
Banks invested heavily in technology infrastructure, including security systems, which lead to higher costs for the sector, said Mr Payong, who is also chief executive of Krungthai Bank (KTB).
"Higher costs may pass through to customers at reasonable prices. With a new fee structure, banks would gradually balance the fees charged for each channel, transitioning from a cash-intensive society to a cashless society in the long term," he said.
https://www.bangkokpost.com/business/25 ... t-expenses
Banks are the scourge of the earth - do you see them passing on interest rate increases to consumers? No, they make billions in profit out of charging more for borrowing.
It won't matter much to us as farangs won't eligible for bank accounts here when they digitize everything.
Re: Banks consider new fees to reflect expenses
Right, you can just envision immigration and the banks coming up with a "special farang account" that you have to pay fees for monthly and has a minimum annual deposit balance earning zero interest.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: Banks consider new fees to reflect expenses
Added cost my A$$
Electronic transactions vs staffed brick & mortar. And people believe this krap.
Forced to pay fees to access your money, they use to make profit on ...
... mind boggling.
Be nice if they gave you an interest rate to at least cover the fees. My DD goes in, and every 3rd or 4th month about, I withdraw it, so <$10k, to avoid FBAR
Electronic transactions vs staffed brick & mortar. And people believe this krap.
Forced to pay fees to access your money, they use to make profit on ...
... mind boggling.
Be nice if they gave you an interest rate to at least cover the fees. My DD goes in, and every 3rd or 4th month about, I withdraw it, so <$10k, to avoid FBAR
Re: Banks consider new fees to reflect expenses
No wonder they're raking in billions in profits ...
Banks post 15% profit growth in first half
Rising interest rates boosted banks' earnings in the first half with more than 15% net profit growth.
However, the big five players booked flat loan growth for the first six months of the year.
The 10 SET-listed commercial banks reported consolidated net profit for the first half of 2023 at 121.9 billion baht, up 15.2% year-on-year.
https://www.bangkokpost.com/business/ge ... first-half
It actually costs money every year to leave it sitting in a Thai bank.
Bankers ...
Banks post 15% profit growth in first half
Rising interest rates boosted banks' earnings in the first half with more than 15% net profit growth.
However, the big five players booked flat loan growth for the first six months of the year.
The 10 SET-listed commercial banks reported consolidated net profit for the first half of 2023 at 121.9 billion baht, up 15.2% year-on-year.
https://www.bangkokpost.com/business/ge ... first-half
It actually costs money every year to leave it sitting in a Thai bank.
Bankers ...
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: Banks consider new fees to reflect expenses
Yes - the billions they spend on cyber security probably does outweight staff, bricks and mortar. Banks are under attack every single second of every single day, you want them to cut back on that? Licences for software to keep your money safe cost absolute fortunes. Then there's the ridiculous amount of regulation, again to keep you safe that adds shitloads to the cost base and staff they didn't have to employ before, not to mention having to reimburse customers for gullible transactions when they shouldn't be entrusted to take care of their own shoelaces. The budget for that is eye watering too etc etcKhunLA wrote: ↑Fri May 12, 2023 10:14 am Added cost my A$$
Electronic transactions vs staffed brick & mortar. And people believe this krap.
Forced to pay fees to access your money, they use to make profit on ...
... mind boggling.
Be nice if they gave you an interest rate to at least cover the fees. My DD goes in, and every 3rd or 4th month about, I withdraw it, so <$10k, to avoid FBAR
Re: Banks consider new fees to reflect expenses
Banks essentially make ridiculous profits by lending out and investing other people's money, giving very little back in return. The discrepancy in interest rates is a massive giveaway ... want to borrow, pay 7%, want to save, we'll give you 1.5%. The central bank sets the base rate and the retail banks ignore it.
Another scary thing is banks operate on fractional reserves meaning that the money on their books doesn't exist and if everyone went to the bank to withdraw at the same time (as they do in times of economic turmoil), the bank would collapse which is not very safe for your money at all.
Its scary what banks get away with: https://www.msn.com/en-us/money/compani ... r-AA1aDhwV
Another scary thing is banks operate on fractional reserves meaning that the money on their books doesn't exist and if everyone went to the bank to withdraw at the same time (as they do in times of economic turmoil), the bank would collapse which is not very safe for your money at all.
Its scary what banks get away with: https://www.msn.com/en-us/money/compani ... r-AA1aDhwV
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: Banks consider new fees to reflect expenses
That's why I have a chunk of my retirement investments in bank stocks and bonds, if you can't beat them, join them!Banks essentially make ridiculous profits.....