Ministry of Finance tells banks to "reduce commissions."By Elliot Bullman
The petition is tangible because evidence shows that new technological platforms have greatly reduced service costs.
According to the Ministry of Finance, banks must lower the cost of their commissions, because thanks to technology they have been able to reduce their operating costs.
"Online banking and non-physical banking entities have benefited greatly from reductions in their operating costs and therefore, their costs that must be reduced," the Head of the Banking and Savings Unit said.
Consultancy firm Mckinsey and Company have highlighted several examples. For instance, direct account handling in a branch costs between 20 to 30 dollars but by digital means, the costs fall to between 5 and 10 dollars.
According to the study, the storage expenses of institutions also dropped from 40 thousand dollars in 1985 to 0.02 cents in 2017 thanks to new technologies.
The data also reveals that the costs of withdrawals and cash deposits for banks are between six to eight dollars. Using digital applications the reductions drop to between three and five dollars.
Meanwhile, transfers cost the banks 50 to 100 dollars directly at the branch while online transfer can be as little as three to five dollars.
The head of the Banking and Savings Unit also mentioned that there are areas where the establishment of branches is complicated, an issue that has led various outlets in remote locations to offer basic financial operations through technology.
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