The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

CIBC said there has been an increase in fees due to the increased cost of business operations.

Jacqui Bend, managing director of CIBC Bahamas said the BISX-listed bank has adjusted the fee structure on its products and services due to the increased cost of doing business. 

She noted that, with rising operation costs, all fees have not changed and after an analysis of market trends fees were adjusted to bring them in line with current market trends. 

“As banks try to further enhance the banking experience for their clients, there are unavoidable administrative costs associated with providing services to them,” said Ms Bend.

“We have worked to consistently improve our client experience, through tangible improvements to our products, processes, technology and physical plant, which all constitute an investment by the bank. Many of these are the result of what our clients have asked us to provide in order to significantly improve their banking experience with us.”

She added that senior citizens who hold senior savings and chequing accounts will be exempt from the fee increase and alternative channels such as online and mobile banking are proving to be an increasingly popular and cost-effective option among its clients for the convenience and security they provide.

CIBC revealed that personal, business and corporate banking clients will all experience fee increases as of September 1. 

The greatest increases are in the monthly service fees, which will rise by 40 percent for personal banking clients, and 25 percent and 20 percent for business and corporate clients, respectively.

The bank’s revised fee schedule showed monthly service fees will increase from $2.75 to $3.85 for personal banking clients, while business and corporate banking clients will see a $3 increase from $13.20 to $16.50 and $16.50 to $19.80, respectively.

Withdrawal fees for personal banking clients will increase by 27 cents, and those for business and corporate banking clients will see a 16-cent increase. Deposit fees will also see an increase of 27 cents for corporate, savings and chequing accounts, while savings plus accounts will now have a $1.38 deposit fee after being zero before. Business banking clients will pay an additional 38 cents.

The announcement of the fee increase prompted the Opposition’s finance spokesman to demand that Bahamians be given greater protection against “inexplicable and indefensible” bank fee hikes. 

He called for “real financial consumer protection in The Bahamas” and accused commercial banks of continuing to “pile on” fee increases at the same time as they are cutting back services to consumers via branch closures and such like.

“We continue to witness banks in this country piling on more and more fees and charges on Bahamian consumers while providing less and less customer service. The Government must provide greater regulatory protection for Bahamians against increasingly inexplicable and indefensible cost increases,” he asserted.

“We are advised that a major domestic bank will be increasing their rates as of September. However, in December last year, it saw a strong financial performance for its 2023 fiscal year with net income of over $100m, up 74 percent from the previous year. A reasonable question to ask is why raise fees now?” 

Tribune Business research confirmed he was talking about CIBC Caribbean (Bahamas).

Mr Thompson highlighted consumer complaints about “unreasonable” cash chequing fees and “non-transparent” ATM usage fees.

He said: “In some cases, fees have increased over 40 percent without explanation or justification. The reports by the Central Bank reveal that banking fees continue to rise every year. Banks have been removing their brick-and-mortar presence from Family Islands, which has caused great distress to islands like Andros and Long Island.

“The government must act without delay. There must be improved and enhanced regulations covering indiscriminate and indefensible charges by the banks. The Central Bank must be mandated in law to require banks to justify fees and charges charged to customers.”