Spanish lender Caixabank has revealed that it will now charge customers who prefer to visit the branch for services that could be accessed online.
The move is part of the shift in the European banking industry, which has been struggling with negative interest rates for years.
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As per Reuters’ report, Caixabank’s customers will have to pay €2 to be able to use the branch service.
The pandemic led to a surge in deposits, which added to the operational cost (banks must pay to keep cash at the central bank) to lenders, forcing them to charge for services that were initially offered for free.
“A main part of our business, taking deposits, is becoming a loss-making activity. What was once part of our core business and profits is now making losses,” Reuters quoted Caixabank CEO Gonzalo Gortazar as saying earlier.
Additionally, Caixabank plans to raise charges on a debit card from €28 to €36 if Bankia, which was acquired by Caixabank, customers do not use a new credit card issued by the lender.
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By GlobalDataThe Bank of Spain said that the Spanish bank’s revenue from lending dropped 2% in the first half of the year compared to 2020.
Meanwhile, BBVA is now charging €2 on with drawls below €2,000 at a branch. Santander’s customers on the other hand will be charged nearly €240/year if they fail to meet certain conditions.
Separately, from earlier this month, German lender DKB bank started charging a fee on accounts that have over €25,000.
As per the Italian consumer association Altroconsumo, the cost of maintaining a bank account increased by an average of 11-15% in 2021.
