Yangon – In an environment becoming increasingly competitive, local private banks have reduced their banking service fees to order to gain more market share.
Starting on October 2nd, Kanbawza Bank, which has the most branch offices in Myanmar, reduced its fund transfer charges by 50 percent. According to U Aung Kyaw Myo, Managing Director at Kanbawza Bank, this reduction is due to request from the customers.
“We cut our service fees because customers told us other banks were doing the same,” he said.
This service fees reduction only applies to transfers between Kanbawza accounts. Only transfer above 400,000 Kyats will be granted this rate. For transfer below 400,000 Kyats, the bank would charge a flat rate of 200 Kyats. The previous rate would still remain for interbank transfers.
“We will have to follow suit,” said U Kyaw Soe Min, Assistant Executive Director at Myanmar Apex Bank.
Although there had been discussions to let Myanmar Banks Association (MBA) take charge in issues such as improving services and reducing service fees, individual banks decided to carry out their own plans after the failure to agree an agreement among individual banks.