Overdue Basic Banking Product Welcomed

The Australian Catholic Social Welfare Commission gave qualified support to the Basic Banking Product introduced today in Melbourne by the National Australia Bank and called on the whole retail banking sector to follow suit.

Mr Toby O’Connor, National Director, stated: "Ever since the Prices Surveillance Authority Inquiry of the mid 1990s, this Commission has called for a fee-free account for low income Australians, to be introduced by all of the major banks. Since that time the community has seen minimal progress in terms of concrete banking products for low-income Australians.

"The notable features of today’s NAB account include no account keeping fees, 13 free over the counter transactions per month, and no minimum monthly balance.

"This new account will benefit many low-income people including Pensioners, Veterans and Commonwealth Health Card holders. However, it is a great shame that a one-year waiting period will be imposed on new customers trying to access this product. This will remain a real problem until all other retail banks follow suit.

"Today’s new Banking product is an important step toward a fairer deal for those struggling under current fees and charges. In the spirit of the recent Australian Bankers’ Association Social Obligation Action Plan, we call on the retail Banking Sector to honour their social obligation by enshrining this type of product as part of the banking landscape."

Mr O’Connor concluded: "If each bank does not co-operate to establish a safety-net product across the sector, one will need to be legislatively imposed."