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From 2024, the ZKB will abolish fees for private accounts. In this way, the bank is meeting the demands of the interest rate turnaround.
The new model: With the new “ZKB Banking” offer, Zürcher Kantonalbank is abolishing fees for private accounts and debit cards. The free model includes three private accounts and two debit cards per person. It should be accessible throughout Switzerland: You can now also open an account digitally. The ZKB advertises savings of up to 116 francs per year and emphasizes that the offer applies digitally and physically in the branch.
The hook: The new ZKB model does not include any fees for up to three private accounts and two debit cards. However, it still charges fees for monthly statements, account closures, cash withdrawals at home and abroad, and purchases abroad. This means that the new offer is not entirely free; the only annual fees that are waived are 12 francs for a private account and 40 francs for a debit card.
The main drivers: Managing director Urs Baumann explains the new model as follows: “We want to give back our success in the spirit of our performance mandate.” The bank made a record profit of 541 million francs in the last half of the year. The bank can also now save costs by digitizing everyday banking. With a view to the change in interest rates, a reduction in fees is to be expected at all banks. The negative interest rates had justified the rising fees in recent years, but with the increased interest rates there is no longer any reason for this.
We want to give back our success in the spirit of our performance mandate.
The competition: Because of the change in interest rates, bank fees are under pressure. The question remains whether other banks will follow ZKB’s example. The Aargauische Kantonalbank reacted to the interest rate change in April and eliminated account management fees and booking fees for private and company accounts. To date, however, there has been no other traditional bank that has taken this step.
The consequences: If you look at the small number of Swiss banks that no longer charge fees, you could assume that more and more customers are now switching banks. However, according to a study by the Lucerne University of Applied Sciences, this is unlikely because customers value the product performance more highly than the interest rate and fees. In addition, only a few customers know their bank’s interest rate and therefore do not think about switching. This knowledge gap therefore benefits banks, which stick to their fees.