Banks’ and savings banks’ payment services mostly rose in price last year

The average fees charged by banks and savings banks for payment services were higher at the end of 2019 than a year earlier in 16 out of 21 analysed segments. Fees for consumers rose by 3.75% on average, while fees for legal entities were 2.48% higher. The analysis also provides a comparison of the cost of various baskets of payment services, which makes it easier for users to find their preferred provider. The annual fees for electronic banking customers making payments via online banking were a half lower on average than those charged to traditional customers primarily transacting their business via bank counters. Consumers could save up to EUR 232.56 annually by switching their provider of banking services, while legal entities could save up to EUR 1,099.35 (according to the Banka Slovenije basket of services). These were the key findings of Banka Slovenije’s latest analysis of fees for payment services, which covered 15 banks and savings banks.

Of the total of 21 payment service segments analysed, the average fees as at 31 December 2019 were up on 31 December 2018 in 16 segments, down in two segments, and unchanged in three segments. The largest increase was recorded by the average fees for consumer payments via bank counters (a 17.65% rise for external retail credit transfers), while the largest fall (of 2.13%) was recorded by average fees for external payments by consumers via standing order. Fees for consumers’ payment services rose by 3.75% on average, while fees for legal entities were up 2.48%.

Banka Slovenije also calculates the costs of baskets of payment services, on the basis of which users can judge which provider best suits them. According to the Banka Slovenije basket, a consumer transacting primarily via bank counters could save up to EUR 232.56 annually by switching his/her provider of banking services, while a consumer transacting primarily via online banking could save up to EUR 24.74 annually. Given the large volume of transactions and the higher fees, there is an even wider gap in the legal entities segment. A legal entity using traditional banking services could save up to EUR 1,099.35 annually, while a legal entity transacting electronically, which is generally the case for legal entities, could save up to EUR 332.85 annually by switching provider.

The fees for electronic banking customers transacting primarily via online banking are a half lower on average than those charged to traditional customers transacting primarily via bank counters. Banka Slovenije attributes this to the pricing policies of certain providers, who are trying to use prices to direct customers to more efficient electronic market channels.

Figure: Cost of basket of payment services for consumers in 2019 by payment service provider, EUR

Source: Banka Slovenije

Banka Slovenije expanded the analysis for 2019 to include a review of the fees and services of non-bank providers, who do not report their fees to Banka Slovenije on the grounds of non-comparability of services, even though they provide payment services with a Banka Slovenije authorisation.

Data on current fees for payment services has been collected by Banka Slovenije since 2007, and is published on our website. We also provide a price comparison tool in conjunction with the Slovenian Consumers’ Association (SCA) to allow consumers to compare the annual cost of payment services. The purpose of both is to ensure that consumers are as informed as possible about the fees for payment services, to allow them to compare annual costs of payment services with regard to their payment habits and the amount of payments that they make, and not least to make it easier to choose a payment service provider.

The analysis is available on this link.