EY: Croatian Banks Among Those with Lower Fees in the EU

The issue of bank fees has been a current topic in recent times, and in this regard, EY Croatia conducted a detailed analysis of the current state and level of the most common bank fees in 10 European Union countries, including Croatia. The analysis provides insight into the amount of fees for the most representative banking services, taking into account banks that together account for more than 50 percent of the market share by total assets in each of the countries included in the analysis. In addition to Croatia, the analysis covered banks operating in Austria, Belgium, the Czech Republic, Ireland, Italy, Hungary, Germany, Slovakia, and Slovenia.

 

Analyzing publicly available data on bank websites, the research showed that the average fee for account maintenance, which includes the fee for mobile banking, in Croatia is among the cheapest at 2.97 euros. The fee for the same service, for example, in Austria is 4.49 euros, while in Hungary it is 3.07 euros and in Slovenia 3.31 euros. Among the analyzed countries, users in the Czech Republic pay the lowest amount for this service at 0.85 euros, according to the statement.

 

– The analysis found that banks in Croatia often have more transparent fee structures, which are easily accessible to clients and usually all fees are listed in one document. On the other hand, banks in other countries often do not have fees published in one place, but each type of account or service category has its own separate fee, which can lead to additional confusion for clients when studying the fees. It should be emphasized that the aim of this analysis was to identify differences and similarities in bank fees across different EU member states, with the intention of enabling clients to better understand the costs associated with banking services – emphasizes Maja Šuber, partner in the Business Consulting Department at EY Croatia.

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The analysis determined that in Croatia it is possible to open a current account without contracting additional services, and the average fee is two euros, which is not possible in some EU countries. In Germany, each account and the corresponding account maintenance fee automatically include other services, such as mobile banking or payment orders, effectively behaving as a service package. Given the high competition in the German market, which includes not only banks but also fintech companies, payment orders in euros are most often not charged, and their cost is included in the account maintenance fee, which averages 6.02 euros. In comparison, the average amount for the lowest package in Croatia is 5.89 euros, which includes account maintenance, mobile or online banking, payment orders in a limited or unlimited number, and other services defined by the package.

The analysis of the debit card issuance service found that in several countries this is charged additionally, either through an issuance fee or an annual membership fee. The average membership fee for a debit card in Austria is 1.55 euros, in the Czech Republic 0.85 euros, in Italy 1.39 euros, and in Hungary 1.32 euros. In Croatia, debit cards are considered part of the current account, and it is expected that banks do not charge a fee for their issuance. The fee for withdrawing cash from ATMs is most often free when it is an ATM of the bank where the client has an account, except in Hungary, where it averages 1.12 percent of the amount.

 

On the other hand, credit cards in all analyzed countries carry a membership fee, and banks charge for cash withdrawals from both their own and other ATMs.

 

The average membership fee per credit card in Croatia is among the lowest at 1.94 euros, while in the Czech Republic it is 2.11 euros, in Ireland 2.50 euros, in Germany 2.90 euros, and in Italy even 4.23 euros. Banks are unified in charging for payment orders in euros, so in all banks, fees for payments made in branches are higher than those made via mobile or online banking. In Croatia, the average fee for a national payment order in euros at a bank branch compared to other banks is among the lowest at an average of 2.13 euros, while in the Czech Republic it is 4.97 euros, in Italy 5.95 euros, in Slovenia 8.70 euros, and in Slovakia a record 9.33 euros.

The analysis of banks in all 10 countries found that all of them offer their users a basic account service. It should be noted that there are two types of basic accounts – one for the social category of consumers and one for other consumers.

The analysis showed that the fee for maintaining a basic account for the social category of consumers in Croatia is generally not charged, while the fee for maintaining a basic account for other consumers is minimal. In some analyzed EU countries, fees are charged for both types of basic accounts. For example, in Belgium, the average fee for a basic account for the social category of consumers is 1.40 euros, in Slovenia 1.47 euros, in Austria 2.99 euros, in Germany 3.84 euros, while in Croatia the average fee for the same type of account is 0.04 euros.

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– By analyzing the fee structures of banks in different countries and comparing them with the fees of Croatian banks, we can conclude that all banks charge fees for their services. It has been observed that certain fees in the observed EU member countries are higher than in Croatia. However, there are also countries where certain fees are more favorable, while at the same time in those same countries other fees are significantly higher. Based on the results of the analysis, clients are advised to carefully compare the fees of different banks, focusing on the fees for the services they use most frequently – concludes Maja Šuber.