Fresh Banking in Spain 2
Recently I read a "letter to the editor," in a local foreign newspaper. The British author couldn't understand how "things work here." in Spain. The subject was banking. Although the letter was about another banking issue, I myself see differences with other cultures I'm used to, like the fundamental existence of commission for whatever financial transaction by what ever medium.
Commissions are still standard practice in Spain and as I'm not used to those I'm figuring out what is the force behind them. It seems strange that a transfer of money done through the internet costs exactly the same as doing the transfer through an employee in a local office. It seems odd that there is no incentive to use the internet.
ING Direct has been present in Spain with a fresh banking formula where these transaction costs have been removed. I was wondering whether such a initiative would change the banking business in Spain.
It probably will not.
Although fresh banking is gaining popularity, it is not changing the commission practice. What I learn is that people in Spain care about a real office and many mistrust a virtual bank. There are other online banks, like bankinter, but this is a niche market. The man in the street is more confident with a real an tangible office.
Most likely both banking formulas will go in parallel. Fresh banking is for those who don't bother about an office but do about commissions and prefer flexibility. Others -- more traditional oriented -- stick to their office and know that they will have to pay more. Not only the commission, but fees for holding the account (in some cases the Spanish banks offer no commissions but this is only for the first period).
In every country there are habits and customs that do not easily change. In this case of fresh banking the change to existing banking structure in Spain will be limited. Unless people change their habits. So far there is little sign of that.
2008 Hans Bool
Hans Bool writes articles about management, culture and change. If you are interested to read or experience more about these topics have a look
Source: http://ezinearticles.com/
Added: April 12, 2008
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