What's trickling down on my back

michaels

I have no objection to that.

Those who can't be bothered to shop around also pay more for their mobile contracts and holidays. Perhaps Mr G the corporatist is proposing that the govt work with suppliers and retailers to regulate all prices to ensure no one ever 'overpays' for a product?

Generali wrote: »

Who should pay for your 'free' current account? The present business model is that the disorganised pay.

DiggerUK

Generali wrote: »

....Who should pay for your 'free' current account....

..... I have to put up with a ton of abuse for being a 'bankster' despite providing an essential service, ensuring that my clients' pensions aren't stolen.

I allow the banksters to do what the hell they like with my money when it is in their care, I give the banksters a free loan of my money. That's how it's paid for.....

....'bankster'...aah, now I understand your position. Even at my age it is possible to learn something new.

I honestly did not know. Please accept my sympathies.
..._

wotsthat

DiggerUK wrote: »

I allow the banksters to do what the hell they like with my money when it is in their care, I give the banksters a free loan of my money. That's how it's paid for.....

If you think that the banks are profiteering from the vast sums moving through your current account then you could change banks or just use cash.

I prefer the current system of 'free' banking where people who can't manage their money pay for their own banking costs and mine too.

DiggerUK

wotsthat wrote: »

If you think that the banks are profiteering from the vast sums moving through your current account then you could change banks or just use cash......

I'm happy for them to use my money, no problems with that, let them profiteer away.

It's charging me for banking I have no choice about using that gets my goat. That, and those who defend the banksters right to fleece me.
..._

TruckerT

DiggerUK wrote: »

It's charging me for banking I have no choice about using that gets my goat. That, and those who defend the banksters right to fleece me.
..._

I have never paid banking charges in more than 40 years - free banking is available to all

But the Banks continue to fleece us all in any way they can invent - their biggest defenders are the nationial/international governments, who regularly hand over billions of euros etc of their taxpayers' money

TruckerT

ladylouise62

It's an interesting discussion. I would be interested to know the true facts of all of this.
The other day I heard someone say that banks expect to make 15% profit, whereas most volume repeat businesses (e.g supermarkets) would only expect 2-3 % (if I remember correctly, and even that is high compared to what they used to get or what other countries like the US would expect).
Also, banking today is a very different animal to that of the 70s - then a lot of people received cash or if not, would still take out a wad of cash weekly to pay for things, but when chqs were used, they were manually processed and manually moved around the country. Now it's all virtual with relatively little cash and few chqs out there... so I wonder how the cost of running the banks then and now, compares

DiggerUK

ladylouise62 wrote: »

It's an interesting discussion. I would be interested to know the true facts of all of this.
The other day I heard someone say that banks expect to make 15% profit, whereas most volume repeat businesses (e.g supermarkets) would only expect 2-3 % .....

Have a read of this report from the OFT. It covers the period 2006/2008

UK banking made the biggest gross of all banks in Europe...£152 per account....and that they made £8.3billion from over 50 million active accounts.

Now do the sums as to how many billions they will make when you add on fees of £8 to £25 per account. That is on top of the money they make with the interest I forgo on my account.
..._

antrobus

DiggerUK wrote: »

Have a read of this report from the OFT. It covers the period 2006/2008

UK banking made the biggest gross of all banks in Europe...£152 per account....and that they made £8.3billion from over 50 million active accounts. ..._

But the report cited clearly states;

The European Commission estimated the average account revenue per consumer in 2004 in 20 EU countries. They found that the UK had the fifth highest account revenue per consumer, below Luxembourg, Italy, Holland and Austria.

Anything else you'd like to get wrong?

michaels

So a 2004 report by the European Commission had a different result from a 2006-8 report by the OFT...and I am not sure we have any evidence that the 'gross' and 'account revenue' that are being compared are the same metric but it is still enough evidence to accuse digger UK of being wrong?

antrobus

michaels wrote: »

So a 2004 report by the European Commission had a different result from a 2006-8 report by the OFT...and I am not sure we have any evidence that the 'gross' and 'account revenue' that are being compared are the same metric but it is still enough evidence to accuse digger UK of being wrong?

Err, no. DiggerUK cites the OFT report 'Personal current accounts in the UK' of July 2008 as support for his claim that "UK banking made the biggest gross of all banks in Europe...£152 per account". But the OFT report doesn't say that; it merely refers to research carried out by the European Commission which "found that the UK had the fifth highest account revenue per consumer".

To make it plain: the OFT did not itself make any comparisons of the income derived from current accounts by European banks; it merely refers to the comparisons made by the European Commission. There is only one comparison and that puts the UK fifth out of twenty; one of the highest, but not the highest.

Thus Digger UK's claim that UK banks make the 'biggest gross' from current accounts in all Europe is wrong, and simply adds to the tally of the things he's got wrong in this thread.

Interestingly enough the European Commission also noted that the UK was the only country where banks earned "zero estimated revenue per transaction". So if they were indeed making the 'biggest gross', perhaps getting them to change to a revenue per transaction model would make their customers better off.