After HSBC reported a fall of 35% in quarterly profits, they have suggested they may start charging for basic banking services in some countries.
HSBC said: “it was losing money on a large number of accounts and are considering charging for products such as current accounts which are free to customers in the UK”.
HSBC suggests it is committed to continue to provide Basic bank accounts in the UK for free, but always reviewing pricing for their standard current accounts and associated services.
During the third quarter HSBC reported a fall of 35% in pre-tax profit to £2.3 billion while revenues fell 11%.
HSBC and other banks have seen earnings hit rock bottom interest rates and are considering other ways to boost revenues.
HSBC said: “it would accelerate its restructuring plan, cutting costs further than previously suggested, after cutting 35,000 jobs they have not said whether more jobs would go and would provide more details on their plans with its full-year results next February”.
If the UK falls into negative interest rates due to the pandemic, many banks may start to charge for standard bank accounts. After all, if you go back to the 50s, 60s and 70s, they always used to.