Britain has highest fees in world for overdrafts
The UK's high street banks are charging the highest unauthorised overdraft fees anywhere in the world. Paul Pullinger, head of retail banking for Capgemini Financial Services UK, is interviewed.
29 May 2008
Publication
Retail banks rake in a collective £3.5 billion a year through exceptional fees
levied on items such as bounced cheques or breaching overdraft limits.
According to a report by financial consultants Capgemini, this makes up 52 per
cent of their fee income, compared to Australian and Indian banks, which get similar
levels of income from exceptional charges at 51 per cent and 43 per cent of fee
income respectively.
Paul Pullinger, the head of retail banking for Capgemini Financial Services in the UK, estimates our high street banks glean exceptional charges profits of between £60 million and £100 million each per annum. He said: “Lots of people will be surprised at how big a percentage exception handling fees really are in the UK.”
To read the full article at The Scotsman, click here.
For more information about the 2008 World Retail Banking Report, click here.
To find out more about Capgemini’s work in the financial services sectors, click here.
To return to the Capgemini UK News Centre, click here.
