Parliament hears banks not transparent with fees

Parliament hears banks not transparent with fees

South African banks have yet to be sufficiently transparent over the fees they charge customers. 

Black woman withdrawing money from an ATM
Black woman withdrawing money from an ATM/iStock/Visions

This is what the Financial Sector Conduct Authority told Parliament on Tuesday.


The authority's Sindisiwe Makhubalo said they have also identified the need for banks to improve their complaints management practices and address cyber security issues that come with digitisation. 


She said their focus is on protecting consumers and improving trust in the banking sector.


"When we look at some of the fees that are charged by the banking sector, we do pick up a lot of inconsistencies. In some areas, the lack of transparency in getting the customer to understand what type of fees they charged. There is a lot of work that we are doing."


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The meeting aimed to tackle matters of competition, the provision of credit for productive activities, and transformation in the sector.


At the same meeting, uMkhonto Wesizwe Party member Des Van Rooyen alleged that the database of the troubled Ithala Bank had been leaked to First National Bank. 


“It has been brought to our attention by our constituents that, out of desperation, Ithala’s database has been handed over to FNB. As we speak, Ithala’s clients are being harassed by FNB urging them to join the bank.”


Van Rooyen accused the Reserve Bank’s Prudential Authority of disregarding parliament’s resolution to unleash an assistive process at the struggling bank.


“Parliament recently resolved that a more considerate and gradual process should be embarked upon by all stakeholders to ensure that Ithala is supported to be a full-fledged financial service provider. Contrary to that, the PA under the leadership of national treasurer – even though treasury is always trying to convince us that it's not in charge of your activities – snubbed that process.”


FNB’s chief executive officer, Harry Kellan, denied the claims that the bank was not seeking to poach customers from Ithala.


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