Equity Group has introduced of an annual debit card fee of Ksh 240, which is set to earn the lender billions of shillings from active Kenyan customers.
The bank, which has more than 10 million customers in the local market, has started collecting fee from a section of its clients. This will see it earn upwards of Ksh 2 billion per year.
“We wish to advise that this is an annual charge that was recently introduced as per our tariff guide,” Equity Bank Kenya said in response to customer queries. In this regard, Sh240 shall be deducted from your account only once per year, for the period the card remains active.”
The fee is applied 12 months after the card is issued and continues until the card expires.
Recently, banks have been seen to expand their list of fees in a bid to increase the revenue collected due to the high costs of operations of providing specific services.
The new charge is set to boost Equity’s non-interest income by roping in millions of retail clients who previously only paid a one-time fee when acquiring or renewing their debit cards.
It also provides stable and recurring revenue as most clients hold debit cards for withdrawing cash at ATMs and making payments at point of sale terminals.
Equity’s non-interest income stood at Sh31.9 billion in the nine months ended September, representing 39.6 percent of the total operating income of Sh80.4 billion.
Introduction of debit card fees adds to the bank’s income from credit cards. Credit cards have, however, fewer takers as they target middle to upper income clients with significant disposable incomes.
