Estonia’s two largest retail banks, Swedbank and SEB, are increasing the prices of their in-branch services. The cost for customers completing a bank transfer at a Swedbank or SEB branch will soon rise to EUR 5.
When asked if the price increases were a result of the current market situation, Tarmo Sulla, Swedbank’s head of private banking, said: “Not all prices have changed, only those where the costs of providing the service have increased. The changes will have little impact on customers who use Internet banking and the mobile app.”
According to Ulla, the number of customers using Swedbank’s digital services has increased. As a result, the volume of transactions carried out in branches with the help of customer service agents has also fallen.
Maarja Kalamas, head of communications at SEB Bank, said, that the bank expected prices for electronic services to always remain cheaper in future, than transactions made in person with the help of customer service agents.
Swedbank introduced its new EUR 5-charge for in-branch services on July 1, while SEB would adopt a similar price increase on September 1. A EUR 5-fee for in-branch payments is already in place at competitor LHV.
Should they wish to receive new debit and credit cards by recorded mail, SEB Bank customers would now pay EUR 5, where previously the service cost EUR 2.5. Domestic delivery of bankcards using regular post remains free of charge for SEB customers.
Intra-bank payments made in branch at SEB and Swedbank will also be subject to price increases, with costs at both banks rising from EUR 2.3 to EUR 5.
At Swedbank, the price of domestic and European payments will also rise from EUR 3.2 to EUR 5, while at SEB, the increase is from EUR 3.5 to EUR 5.
Since the start of July, customers have been able to make deposits of up to EUR 6,000 and withdraw a maximum of EUR 10,000 per month at Swedbank’s ATMs.
The cost of renewing personal Smart-ID services in-branch will also rise from EUR 5 to EUR 10 for adults.
Swedbank and SEB’s prices are subject to reviewing on an annual basis. According to a Swedbank representative it is too early at this stage to say whether service prices will increase again next year.
Swedbank’s consolidated profit in Estonia was EUR 43.3 million in the first quarter of 2022, with net fee and commission income accounting for EUR 17.9 million of this total. In the first quarter, Swedbank’s consolidated profit was EUR 41.4 million, with fee and commission income at EUR 18.6 million.
SEB Bank’s consolidated profit for the first quarter was EUR 27.2 million. Of this, net fee and commission income was EUR 12.7 million. In the first quarter of 2021, SEB Bank’s consolidated profit was EUR 25.9 million, of which net fee and commission income amounted to EUR 11.3 million. (ERR/Business World Magazine)