Asked if the price increases were a result of the current market situation, Tarmo Sulla, Swedbank's head of private banking, told ERR: "Not all prices have changed, only those where the costs of providing the service have increased. The changes will have little impact on customers who use internet banking and the mobile app."

According to Ulla, the number of customers using Swedbank's digital services has increased. As a result, the volume of transactions carried out in branches with the help of customer service agents has also fallen.

Maarja Kalamas, head of communications at SEB Bank, said, that the bank expects prices for electronic services to always  remain cheaper in future, than transactions made in person with the help of customer service agents.

Swedbank introduced its new €5 charge for in-branch services on July 1, while SEB will adopt a similar price increase on September 1. A €5 fee for in-branch payments is already in place at competitor  LHV.

Should they wish to receive new debit and credit cards by recorded mail, SEB Bank customers will now pay €5, where previously the service cost €2.5. Domestic delivery of bank cards using regular post remains free of charge for SEB customers.

Intra-bank payments made in branch at SEB and Swedbank will also be subject to price increases, with costs at both banks rising from €2.3 to €5.

At Swedbank, the price of domestic and European payments will also rise from €3.2 to €5, while at SEB, the increase is from €3.5 to €5.

From the start of July, customers have been able to make deposits of up to €6,000, and withdraw a maximum of €10,000 per month at Swedbank's ATMs.

The cost of renewing personal Smart-ID services in-branch will also rise from €5 to €10 for adults.

Swedbank and SEB's prices are subject to review on an annual basis. According to a Swedbank representative it is too early at this stage to say whether service prices  will increase again next year.

Swedbank's consolidated profit in Estonia was €43.3 million in the first quarter of 2022, with net fee and commission income accounting for €17.9 million of this total. In the first quarter of 2021, Swedbank's consolidated profit was €41.4 million, with fee and commission income €18.6 million.

SEB Bank's consolidated profit for the first quarter was €27.2 million. Of this, net fee and commission income was €12.7 million. In the first quarter of 2021, SEB Bank's consolidated profit was €25.9 million, of which net fee and commission income amounted to €11.3 million.

--

Follow ERR News on Facebook and Twitter and never miss an update!