South Africans Demand Transparency in Banking Charges, Not Complimentary Services
In South Africa, the Finance Minister, Enoch Godongwana, has highlighted the power of the Financial Sector Conduct Authority (FSCA) to enforce a Conduct Standard that mandates transparency, fairness, and clarity in how banks communicate with customers. However, the regulation stops short of defining what counts as an "unfair" or "very high" fee, leaving many customers in the dark.
This lack of transparency is a significant concern for consumers, who often find bank fees confusing and poorly explained. A survey revealed that 21% of users do not review their statements at all, while 48% sometimes review their monthly charges but do not understand them.
Common banking fees in South Africa include monthly service fees, transaction fees, electronic banking fees, and miscellaneous or "other charges." These fees are often scattered throughout statements with no automatic summary or monthly tally, making it difficult for customers to get a grip on bank costs.
Miriam Ngwenya, a general worker, is one of many customers who wishes bank fees were explained more clearly. She frequently encounters confusion when it comes to interest charges on lending accounts and the application of interest.
Standard Bank, one of the country's largest banks, acknowledges that its customers query their fees but says complaints are rare, with less than 0.02% of customers logging a complaint about the fees in a year. However, customers must actively hunt for fee schedules, and many report receiving statements with multiple similar or overlapping fees, such as a "service fee," a "transaction service fee," and "other charges," with unclear explanations for each.
This lack of transparency causes frustration and a perception of arbitrary or excessive charges. Customers want clear, straightforward, and action-related fee disclosures, rather than complex or hidden charges. They want fees tied explicitly to specific banking actions, such as making a payment or withdrawing cash, instead of a confusing maze of fees that seem random or repetitive.
In addition, some premium banking products charge higher monthly fees but often bundle unlimited transactions, special services, and rewards, with clearer descriptions of what the fee covers.
Starting July 2025, banking fees have generally increased, adding to public concern. The Financial Sector Conduct Authority (FSCA) has launched a review into the fee structures of South Africa's major banks to determine whether current practices are fair and whether policy intervention is necessary.
Customers have complained about the difficulty in understanding charges for everyday services like buying electricity, debit orders, and ATM withdrawals. Fees are technically disclosed but often buried deep within websites, hidden in downloadable PDFs, or obscured by vague language in monthly statements.
Timothy Treagus, the founder of cost-analysis startup Yazi, suggests that it should be standard for banking apps to show actual total costs, broken down by type, and offer guidance on how to optimize usage to save on fees.
In summary, the critical issue in South Africa is not that fees exist but that customers seek honest, transparent, and easy-to-understand banking fees that are linked to concrete services or transactions. The FSCA's review and the minister's call for transparency are steps in the right direction towards addressing this issue.
Customers in South Africa are struggling to understand the various banking fees, such as monthly service fees, transaction fees, and miscellaneous charges, which are often poorly explained and scattered throughout statements without a clear summary. This lack of transparency and clarity in fee disclosures causes frustration among customers, who desire straightforward, easy-to-understand fees related to specific banking actions, like making payments or withdrawing cash. The Financial Sector Conduct Authority's (FSCA) review into the fee structures of major banks and the Finance Minister's call for transparency are steps toward addressing this issue in personal-finance and business matters.
