Charging fees for accounts with balances under 500,000 VND/month: Banks at risk of losing customers?

According to Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking (Nguyen Trai University), in the context of increasing pressure on operating costs, digital transformation and security requirements, it is understandable that many banks restore management fees for accounts with low balances.

However, applying a balance of 500,000 VND/month or another hard threshold may not be the optimal choice. Because among customers who maintain a low balance today, many can become high-value customers in the future, for example: new students, rising income groups, startups or young customers forming financial habits...

" If the policy is not flexible, the bank may unintentionally lose these potential "customer seeds ", Mr. Huy commented.

According to him, a sustainable policy needs to harmonize two goals: optimizing costs and nurturing a long-term customer base. Then, instead of imposing a single level, banks can design a more sophisticated, layered solution system such as: 100% free package for new or young customers in the first 6-12 months, no minimum balance required, thereby encouraging them to experience the digital financial ecosystem more deeply.

The 50% fee-free package can be maintained if the customer meets one of the following conditions: 2-3 transactions/month; Link e-wallet; Regular QR payments; Maintain salary transfer via bank. That is, the bank does not waive the fee unconditionally, but exchanges fees for engagement.

In addition, it is also possible to build a 30% free package based on the use of cross-selling services; using banking partner services such as bill payment, ticket purchase, digital consumption. This creates another source of revenue to offset costs, while bringing practical benefits to customers.

Finally, there is the full charge package for completely inactive accounts, which is a necessary solution for banks to eliminate dormant accounts, optimize infrastructure and avoid fraud risks.

Charging low balance account fees, banks easily lose potential customers in the future.

" In my opinion, it is necessary to apply a flexible balance according to customer groups instead of requiring a uniform 500,000 VND. This both protects customer experience and creates fairness in the policy ," said Mr. Huy.

Charging maintenance fees is an inevitable trend in the modern banking industry, but the implementation needs to be more subtle, based on the behavior, needs and potential of each segment. If banks know how to design a policy that is accompaniment instead of imposition, they will not only optimize costs but also expand their potential customer base - a strategic benefit in the long term.

" Customers should close accounts at banks with few transactions, focus cash flow on 1-2 banks, and carefully research each bank's product policies before choosing the main bank ," Mr. Huy also advised.

Sharing the same opinion, Dr. Nguyen Tri Hieu - financial and banking expert - analyzed: Charging fees for accounts with an average balance of less than 500,000 VND/month is not really reasonable because the number of current accounts without a term is very large, banks will use these accounts for loans without capital costs, thereby taking advantage of the balance to make a profit.

In addition, the requirement of an average balance of less than VND500,000/month to collect fees is too high, many bank accounts will not be able to meet the requirement. According to Mr. Hieu, the balance should only be kept below VND100,000/month.

" According to practice, banks around the world require customers to keep a minimum amount of money in their accounts to maintain, but the level is very low. This requirement is also normal because to operate a 24/7 payment system with many layers of security and complex technology infrastructure, banks also have to spend maintenance, operation and new investment costs. Therefore, charging fees to maintain service quality and develop the system is normal and reasonable ," Mr. Hieu emphasized.

However, if it is only to ensure operational levels, it is reasonable, but if banks want to increase balances to make profits, it is not reasonable.

Mr. Hieu also said that currently the number of accounts with balances under 500,000 VND/month is not too much, most of them are students, students, young people. These are customers who are likely to become rich in the future. Therefore, if the account balance is increased, many people will not be able to meet the demand and will have to give up, thereby the bank will lose a number of customers in the future.

Giving advice to customers, Mr. Hieu said that to avoid being charged for insufficient balance, users should either continue to keep the account and meet the balance requirement to avoid being charged or choose another bank with lower balance requirements.

In addition, you should only maintain accounts at banks that you regularly transact with. At the same time, close accounts that you no longer need to avoid unnecessary costs.

How are banks charging account management fees?

According to the current fee schedule of banks, account management fees are regulated by banks at different levels.

At BIDV , according to the fee schedule from May 10, payment accounts with an average balance of less than 2 million VND will be charged 5,000 VND/month; from 2 to under 10 million VND will be charged 3,000 VND/month; from 10 million VND or more will be free.

At VPBank , with a regular payment account (Autolink), an average balance of less than 2 million VND will be charged 10,000 VND/month; maintaining 2 million VND or more will be free.

MB Bank waives account management fees if customers maintain a minimum balance of VND 50,000.

At Vietcombank, the account management fee is usually 2,000 VND/month, while the general account management fee is 10,000 VND.

At TPBank, the fee is set at VND8,000/month, while LPBank and Agribank apply a fee of only VND5,000/month.

Sacombank applies a fee of 6,000 VND/month for accounts with an average balance of less than 500,000 VND last month.

In general, banks' account management fee policies are aimed at encouraging customers to maintain a large enough balance in their payment accounts, in order to take advantage of non-term deposits.

In addition, banks also want to clean up accounts by limiting "dormant" accounts.

Chau Anh

Source: https://vtcnews.vn/thu-phi-tai-khoan-co-so-duoi-500-000-dong-thang-ngan-hang-nguy-co-mat-khach-ar990589.html