New Banking Charges: A Shift Towards Reduced Fees and Enhanced Digital Services

These changes aim to reduce consumer costs and facilitate smoother digital transactions, aligning with a broader strategy to modernize the banking sector and improve access to financial services.

Greek banks introduce significant changes to their fee structures starting today, January 20, following an announcement by the Ministry of National Economy and Finance.

These changes aim to reduce consumer costs and facilitate smoother digital transactions, aligning with a broader strategy to modernize the banking sector and improve access to financial services. The implementation date was strategically set to allow a one-month adjustment period after the measures were approved and published in the Government Gazette on December 20. This preparation time enabled banks to update their IT systems and ensure compliance, fostering a seamless transition to the new framework for their customers.

The revised regulations primarily focus on reducing charges for digital transactions conducted via web and mobile banking platforms. Traditional fees for in-branch services, however, will remain unchanged. This dual pricing model underscores the government’s aim to incentivize digital banking while maintaining traditional options for those less technologically inclined.

Among the notable changes, digital payment services for utility bills, tax obligations, and other government-related charges will now be free of charge. Previously, such transactions incurred fees of approximately €0.60 per payment. This measure alone is expected to reduce annual banking revenues by €35 million—a relief that directly benefits citizens.

Additionally, charges for money transfers between banks have been significantly reduced. For amounts up to €5,000, the fee for outgoing transfers is capped at €0.50, with a similar charge for incoming transfers. This marks a reduction of 50% to 80%, depending on the transaction type and bank. For example, current fees ranging from €1 to €2.50 will be halved or more. This adjustment is estimated to cost banks €95 million annually but provides a significant financial reprieve for individuals and small businesses.

The reforms also address fees associated with ATMs and point-of-sale (POS) systems. Cash withdrawals in areas served by a single bank’s ATM will now be free, whereas such transactions previously cost up to €3. Similarly, balance inquiries at ATMs belonging to other banks will no longer incur a €0.20 fee.

POS transaction fees have been adjusted to favor small businesses. The threshold for reduced charges has increased from €10 to €20 per transaction, effectively doubling the volume of transactions benefiting from the lower rates. Annual transaction volumes under this provision are projected to increase from €1 billion to €2 billion.

Prepaid card users will also enjoy zero fees for top-ups up to €100, a significant improvement from the current €1 charge. Meanwhile, the daily transaction limit for the IRIS digital payment system has been raised from €500 to €1,000. This change not only facilitates higher transaction volumes but also underscores the government’s commitment to promoting cashless payments.

The IRIS system, mandatory for freelancers, is set to expand further, becoming obligatory for all businesses by 2025. Currently, IRIS boasts 3.4 million users for peer-to-peer transactions and 560,000 users among freelancers. The enhanced limits are expected to be fully implemented within three to six months.

The Ministry of Finance has emphasized that these fee reductions are not only consumer-friendly but also vital for bolstering digital banking adoption. By encouraging a shift towards digital channels, the government aims to modernize Greece’s financial landscape and align it with global trends.

Over recent years, Greek banks have made significant strides in improving liquidity, reducing non-performing loans (NPLs), and stabilizing their capital structures. According to the Bank of Greece, NPL ratios have reached their lowest levels since Greece joined the Eurozone—a testament to successful restructuring efforts.

However, challenges persist. Rising inflation, geopolitical tensions, and international market fluctuations pose risks to the sector’s stability. Additionally, the reliance on deferred tax credits (DTCs) remains a structural weakness, highlighting the need for further reforms to enhance financial resilience.

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