Frederick Morgan, Naxxar
Depositors can't bank on a free service
I can't believe that HSBC (Malta) has the effrontery to start charging their personal account depositors for internet banking access. It seems that the "initial" fee is to be €6 per annum for a facility that they have actively been promoting as "free" over the past four years. Having worked in the European banking IT community for the past 30 years I can state categorically that internet banking is (was) a major banking asset (after ATM) in countering rapidly rising banking costs such as staff, mainframe computers and programming, utilities and buildings etc. That's why it was introduced - forget all the service to the community sales blurb. The European banks have still held onto free internet banking for this same reason also coupled with the rage that would ensue if it ever was to become chargeable in this current financial climate.
I myself have just found that my internet banking facility has been removed without notice following my response to HSBC's internet message. My initial reaction was that I would move my account to BOV (who also charge but were upfront about it at the beginning); but then what does HSBC care for the loss of an account, there are still plenty of other depositors to "milk".
So I have decided to keep my current HSBC (Malta) account and revert to the previous method of banking as follows:
• All my bills will now be paid by cheque through the post.
• My statements will have to revert to paper now.
• I'll use the ATM and Quickcash card (until they start charging for the Quickcash card).
My anger is compounded when one realises that all the credit crunch problems around the world emanated from banking community greed in purchasing high risk loans from the US sub-prime market. Yes they all lost a lot of money but guess where HSBC "Malta" is looking to scrape revenue from?
My message to HSBC (Malta) - Get rid of the one who proposed and carried out this income gathering before they irreparably damage your business.
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Roger flett
Jan 17th 2009, 22:23
@Alfred Cassar
The Computer infrastructure is already there, because they have to have it to run their business, all that they add is a secure front end web server. Big deal, it seems that they can fool some of the people all of the time. I have to say that I seek value for money, its something that "grown ups" expect. But unfortunately the banks around the world have just wiped 30% off my value through outright greed and mis-management. Any other institution doing this would be in court for fraud, but it seems that banks just want more and more of our money and get away with it.
M Spiteri
Jan 17th 2009, 21:38
I am surprised to see a number of UK expats names commenting and grumbling about local bank charges.... and I am sure they will agree that local bank charges are nowhere near to what UK Banks.
I am not worried personally of being charged this small fee from HSBC, cause I still prefer their service and they still give me some interest on my savings even though ECB is still cutting interest rates . APS on the other hand has an SMS PIN log in for it's internet banking which is free, but not very secure in my opinion, and you still need to pay for the SMS. BOV are slightly more expensive.
When we compare local bank charges these are still relatively cheap to what EU banks charge. I am more concerned on charges from other utility service providers of the likes of Melita and GO, who give slower broadband than in EU with higher prices to consumers. You can compare these against Fastweb and Alice in Italy. What about these then, Shall we start a witch hunt???
Paul Pace
Jan 17th 2009, 21:34
@Mr. Alfred Cassar,
I presume you are Maltese. So you are Mr. Gemgem as well.
This ia a different service from others. To all banks this service is to the benefit of both. The banks are not loaded with customers, no manpower in printing/mailing statements, less cheques are used and so on and so fort. On the other hand the client can make use of internet banking from anywhere..... by the way internet service is not cheap in Malta.
Mr. Morgan, my service was also terminated when I replied their e-mail without a decent reply to my question of what shall I do with the security key.
All my members of my family (4) are shareholders of HSBC and BOV. At their Annual General Meeting it was always suggested to give the internet banking for free to the shareholders, but it never materialised.
If there will an option to recline from receiving 4 financial statements in lieu of a free internet banking I will opt for it. If I need to read their financial statements I will download it from their respective web site.
I am sure it will be more feasible.
Arthur Ellul
Jan 17th 2009, 20:29
@ Joseph Vassallo
its called Oligopoly, they compete in service, never in price.
They offer the same services under different branding, BOV CLUB, HSBC Y&S, Cashlink, quickcash, BOV24x7, HSBCInternet, VFM (Valletta Fund Management) HSBC Share shop, Bancassurance, HSBC Life, and endless other items of the same sort.
the same services, the same price, the same product, a different name.
and, operate within the parameters of stiff competition for market penetration, with the lowest of income expense to maximise profits.
@Frederick Morgan.
risk has a price, a real tangible price, That 's why, we finance managers in banks venture into investments and partecipate in syndicate loans and senior papers. If banks do not risk, we will run out of business.
Peter Murray
Jan 17th 2009, 19:20
As long as there are people around like the guys thats think its perfectly reasonable for any bank to charge customers for saving them money ,as in internet-operated accounts,then their is no hope for any of us.Banks are responsible for the ungodly financial turmoil we find ourselves embroiled in through profound greed and irresponsibility and they are now have the temerity to attempt to recoup any perceived losses(as they equate less profits to losses)from us-one surreptitious way or another.Name one other country in the world where banks charge for an internet-operated account moreover,where they do not offer a substantially improved interest rate payable against such an account? Ingenuity is not an admirable quality and banks must be laughing uncontrollably at those customers possessing such.
Alfred Cassar
Jan 17th 2009, 19:02
What all this fuss about, Maltese Gemgem? Does anybody in the whole world give a service for free? After all it's only 50c a month for a decent service whether it's HSBC, BOV or otherwise.
We should complain because we are charged to give our car a service, we are charged whenever we visit a doctor, lawyer etc, we are also charged to get a cleaner at home, we are charged for every service we ask for. So why all this non sense because the banks are charging eur6 for their service? Grow up
TRW O'Neill
Jan 17th 2009, 18:49
Gerry Coles, just in case you are being charged for receiving your pension, HSBC was charging me one Lira, for a transfer from BOV, I wrote to the pension office in the U.K. & they agreed with me that my pension should be paid with no deductions, they told BOV if they wanted payment that they had to collect it from Bank of Scotland, I do not lose this immoral payment, so if it is for pension payments , do the same,( my former firm , only banks with BOV)
Adrian Aquilina
Jan 17th 2009, 17:36
Just a short note to all, BOV charges 6.99 Euros for 12 months usage of the securkey so no need to change to BOV which actually is slightly more expensive than HSBC. But like Mr. Portelli wrote, what we pay is nothing compared to the great service we get, at least from BOV!!
John Inguanez
Jan 17th 2009, 17:07
Well they first encouraged us to use internet banking, so that they free their prremisis of queues. Now they impose this charge. What we should do is that we use cheques and go the counter to cash our cheques and notusing ATMs. I will surely do that.
roger flett
Jan 17th 2009, 15:31
I notified HSBC by their secure mail that I would not pay the fee when it became due, so they closed my internet access immediately without any further contact. I though this only became due on the anniversary of opening the account? Still thanks for the tip on APS, I will look into it since HSBC certainly don't seem bothered about keeping me.
Emmanuel Cachia
Jan 17th 2009, 15:07
I am being asked to pay an extra euro on bills payable to Melita Cable by cheque. Have the banks started charging one euro for clearing cheques? Can somebody explain please?
paul baldacchino
Jan 17th 2009, 14:54
Three cheers for minister John Dalli who was responsible for giving away Mid Med Bank on a silver plate to HSBC. a fantastic bargain indeed. I was never their customer, and will never be. I sincerely hope that BOV will not follow in their footsteps.
J.Borg
Jan 17th 2009, 14:46
And we still have total silence coming from the Minister of Finance and MFSA.......
Marc Sant
Jan 17th 2009, 14:32
One would hope that the MFSA investigates such blatant money-making schemes and curbs these outright abuses once and for all....
joe barnes
Jan 17th 2009, 14:25
real nonsense.... we in uk have zero interest and have to pay to keep an account open
Charles.j.Schembri
Jan 17th 2009, 13:59
There is only thing you can do and if all their customers do the same then the bank will notice you...that is to switch bank with BOV....
John Portelli
Jan 17th 2009, 13:25
Everyone wants everything for free. Think of the service you are being provided. Paying 6 euro's for internet banking is nothing in this day and age. Banks are greedy, but so are people. You cannot have it both ways.......Meaning, good service and free service.
Peter Murray
Jan 17th 2009, 12:33
Dear Mr.Zammit.
APS bank are also the ONLY bank NEVER to onpass the full cuts in interest rates(if any ay all)and the last one to do so.Therefore before you extol the virtues of any bank(none of then possess such in any event)think long and hard.As ultimately you pay for anything the bank provides whether obvious or not-and usually through the nose.
John Zammit
Jan 17th 2009, 12:09
Take your accounts to APS Bank where internet banking is free and all other bank charges are less than the other banks. You will also be helpin the Maltese community at large as APS Bank is the only bank that heeds the social needs of the people.
Gerry Cowie
Jan 17th 2009, 11:53
Fees for things have been either creeping in or creeping up in recent times.
For instance HSBC used to deduct LM1 from incoming payments from abroad. Now they take a full 10 euros!
I am surprised they have not introduced an entry fee at the door, a queueing fee, a waiting fee and an exit fee!
As it is they bought up Mid-med for a song.
There is a telephone banking "helpline" where after a certain time one is told that "I am only here for emergency things and cannot help you."
The only thing one can deduce from this latest action by HSBC is that they are not making money and their Chinese owners ( a country where our type of economy has always been frowned upon, except when it suits) are putting on the pressure. Otherwise somebody in HSBC is trying to impress their ultimate owners.
Remember that the money in your account is used by the bank. Yet they pay no interest on credit balances in cheque accounts and, if you do not keep about 170 euros minimum they will charge you a fee for that too!
But they do have a free to use coffee machine!!!!
Joseph Vassallo
Jan 17th 2009, 11:49
Greed, arrogance, disloyalty to lifelong customers..... what's new in that? But as you hinted, there is no real alternative since this seems to be a closed-shop operation, or a cartel perhaps.