ABSA and the Sophisticated Banking System

Well, I’m looking forward to an upgrade in South Africa’s banking system. According to “Business Report“:

Absa on Thursday told the Competition Commission of Enquiry into Banking and the National Payments System that South Africa cannot afford the cost of having a less sophisticated banking system.

In his presentation to the Commission, Absa Group chief executive Steve Booysen said that Absa welcomed the enquiry not only for what it might do to explain banking to the public, but also because its timing is good for Absa.

Though, the part that REALLY peaks my interest is the following:

First National Bank (FNB) in its presentation to the Enquiry earlier this month suggested that banks should agree to reduce SASwitch fees. But von Zeuner said that it is unclear what they meant, because if they meant fees to customers, it is a commercial issue for banks to individually decide.

FNB can therefore do this if it wants. “If they meant scrapping interchange fees we are bemused since we have already made that proposal to them in April this year but FNB did not respond favourably. Absa’s position is that we favour lower charges to ATM customers.” – I-Net Bridge

As I mentioned in the post “ABSA and FNB trying to scrap saswitch fees“, this would be a GREAT benefit, as sometimes the Saswitch fees can be as much as 10% of your ATM withdrawal amount…

Any comments?