Customers hit by HSBC charges hike

HSBC Middle East announces tariff increases for services to new and existing customers.
By Andrew White
Thu 07 Aug 2008 04:31 PM

HSBC Middle East has announced a series of tariff increases for its services to new and existing customers.

The bank has increased the monthly service charge for its Status customers by 43 percent to 100 dirhams ($27). It has also announced it will charge customers for new chequebooks for the first time.

The new charges will affect HSBC Bank Middle East customers throughout the UAE, and come into effect on September 1, the bank said.

While the first chequebook is free with every chequing account, HSBC will now charge its customers 25 dirhams ($7) for each subsequent chequebook.

The bank is also halving the number of free over-the-counter transactions allowed to each client every month, and doubling its card replacement fee for lost or damaged ATM cards to 50 dirhams ($14).

Earlier this week, a study by global management firm A.T. Kearney found that poor customer service is costing the GCC banking sector hundreds of millions of dollars in lost potential revenue every year.

Challenges including too few skilled resources, lack of product transparency, limited responsiveness and follow up on customer requests, as well as poor multi-channel offerings, especially online and with phone banking, are resulting in unhappy GCC customers, the report said.

“GCC banking executives would do well to remember that a happy customer increases a bank’s profits. Banks in the US generate an additional $1 billion in deposits if they can make just five percent of their customers highly satisfied,” said Dirk Buchta, managing director, AT Kearney Middle East.

Research by AT Kearney had found that a five percent increase in customer retention increases product profitability by 20 to 80 percent.

Arabian Business contacted HSBC Middle East but no-one was available to comment on Thursday.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.