Australia's four largest banks have abolished cash withdrawal charges for all ATM users following several scandals in the nation's beleaguered banking sector.
On Sunday, the major banks made the surprise announcement, revealing that they would remove fees for cash machine withdrawals.
The change is likely to cost the banks billions and be a financial boost for consumers around the country, with estimates forecasting savings in the hundreds of millions of dollars.
— CommBank (@CommBank) September 23, 2017
The change will mean that consumers will no longer be slugged the common $2 or $2.50 fees when using an ATM provided by a bank they are not a customer with.
— NAB (@NAB) September 24, 2017
In relation to the Commonwealth Bank, the change will impact its 3,400 branded automated teller machines across the country, according to Bloomberg.
The Commonwealth Bank was the first lender to announce the policy shift. Just hours later, Westpac and the National Australia Bank said they would also dump the fees, while ANZ said it would stop the charge from early October.
Good move.....Big four banks drop their ATM fees - ABC News https://t.co/RX7Pf9nguO— Shane Oliver (@ShaneOliverAMP) September 24, 2017
The banking industry's reputation has suffered recently from several scandals including AUSTRAC allegations five customers of the Commonwealth Bank may have financed terrorism through deposit machines.
Earlier, Scott Morrison praised the Commonwealth Bank's decision to scrap fees.
"We want a competitive banking system and it is my hope that that strong market signal will mean the other banks will follow suit," Morrison said.
"The pressure is back on them now, the Commonwealth Bank has taken the march on that issue.
"But it's important that we continue to take action now right across the full suite of issues that are needed to ensure our banking system is fair."
He said he was watching the banks closely to make sure they didn't hike fees elsewhere to compensate for dropping ATM fees.Suggest a correction