HSBC's direct banking services get a boost

Dubai : The number of customers using HSBC's cash deposit machines (CDMs) has increased a month after the bank introduced charges on over-the-counter credit card payments, according to a statement.

The Dh25 charge per transaction was introduced last month.

While many banks in the UAE impose charges for general over-the-counter transactions, the fees range between Dh10 and Dh25 depending on the bank and the type of account.

The policy aims to increase the number of people who use direct banking services.

HSBC said that it has made substantial investment in its direct banking services and hopes that the new charges will serve as an incentive to encourage more customers to use these services.

"This is not a profit-driven development," the statement said. "Since the introduction of over the counter charges in Dec-ember 2009, HSBC has charged only very few customers as most were happy to use the cash deposit machines to make the payment instantly."

Mashreq, one of the first banks to introduce these charges about ten years ago, said the move was made for the same reasons. The bank wanted to drive customers out of the bank and to the automated teller machines (ATMs).

At Mashreq, customers are charged Dh10 per transaction, and the first six transactions of each month are free.

Cheaper and quicker

"It's basically aimed at the customers we would like to encourage to use ATMs," Gavin Sanderson, Head of Distribution at Mashreq Bank, said. "Because we find it cheaper and quicker to use an ATM."

With 250 ATMs across the UAE, online and mobile banking at hand, Mashreq wants customers who frequently pay the bank a visit to use the online and mobile banking services, as well as ATMs.

"We know there will always be business people who have heavy business transactions. We want to provide a better service and also help educate customers on the emerging banking services," Sanderson said.

Sanderson said that it's been proven over the years that people have become more confident in using ATMs, CDMs and other banking services. "It works and it's 100 per cent reliable," he said. "And it saves costumers time."

Asked whether the bank makes a profit, Sanderson said that it is an investment in other services.