Equity bank customers are set to be deducted Ksh240 annually for its debit card.
The lender has introduced the annual debit card fee that will see the firm get close to Ksh2 billion every year from its wide customer base.
Boasting of more than 10 million customers in the local market Equity will earn billions of shillings from active Kenyan customers.
In a statement to its customers equity noted that the fee will be applied 12 months after the card is issued and continues until expiry of the card.
“We wish to advise that this is an annual charge that was recently introduced as per our tariff guide. In this regard, Sh240 shall be deducted from your account only once per year, for the period the card remains active,” Equity Bank Kenya said in statement.
Local lenders have not been charging fees for their debit cards issued to customers.
However the move has been cited as one move of increasing the banks non income interest incomes.
From its latest financials for nine months ended September Equity’s non-interest income stood at Sh31.9 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.
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.
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