For online accounts, the Bank of Italy explains, the increase in fixed costs is less pronounced than the corresponding decrease in variable costs
If a bank account costs 90.2 euros a year, those online, i.e. aimed at consumers who intend to carry out transactions mainly through the internet, cost 21.4 euros and compared to 2019 they dropped by 1.2 euros. Bankitalia notes this by explaining that these accounts, although not a contractual case distinct from the other accounts, are of interest due to the particular tariff characteristics. But compared to ‘normal’ bank accounts, the cost difference is considerable: € 30.9.
Spending online accounts, he explains Bank of Italy, “is significantly lower than that of conventional bank accounts: the spending gap, equal to 69.4 euros, derives mainly from a cheaper tariff structure, rather than from the different composition of the basket of services used”.
The largest difference, equal to 30.9 euros, is recognized in the expenditure for basic fees and depends on two factors: the lowest percentage of customers required to pay the fees (47.5 per cent of online clients against 70 per cent of traditional clients); the lower amount of the basic fee equal to 31.9 per cent of the conventional accounts. Even the lowest expense for issuing and managing payment cards comes from lower fees. A more favorable tariff profile is also observed in the area of variable expenses, mainly for accounting entry costs, free of charge in online accounts, cash withdrawals at ATMs, bank transfers and automatic payments.
For online accounts, explain Bank of Italy, the increase in fixed costs is less pronounced than the corresponding decrease in variable costs. Similarly to conventional accounts, there is an almost generalized decrease in the orders made, with the exception of online transfers; at the same time, the expense for the basic fee, which constitutes a significant expense item also for this class of accounts, increased due to the higher percentage of customers required to pay the fee.
As for the bank current accounts, the growth of fixed expenses, the growth of which is mostly attributable to basic rents; variable expenses, on the other hand, are reduced due to the almost generalized reduction in operations, particularly pronounced for branch operations. Assuming that the basket of services used and transactions carried out in 2020 had remained constant and equal to that of the previous year, the change in expenditure attributable to the change in commissions alone would have been equal to 1.9 euros; in 2019, the growth in operating expenses was not influenced by commissions, which, overall, had contributed to a slight decrease of 0.2 euro.
Fixed expenses, which amount to 64.1 euros and represent approximately two thirds of total expenditure, increased by 4.3 euros (2.1 in 2019). The growth is attributable to the movement in expenditure for basic fees (2.8 euros; 1.6 in 2019 and 3.9 in 2018), in turn determined by the higher rent (from 53.2 to 56.3 euros); the share of customers required to pay the fee remained almost stable (from 69 to 70 per cent). Other significant increases affected the “other fixed expenses“(1.3 euros) and the expenses for issuing credit cards (0.7 euros), both to be related to the increase in commissions. Finally, Bank of Italy reports that for bank current accounts, the decrease in variable expenses, equal to 4.1 euros, reflects an almost generalized contraction in operations.
The greatest variation is due to cash withdrawals at ATMs (2.5 euros), lower costs for writing operations (3.2 euros), bank transfers. The only increase was the expense for online transfers due to the greater number of transactions carried out; the only increase in commissions, to be found in the “other variable expenses”, was offset by the lower operations. In 2020, the cost of paying the stamp duty was 17 euros (17.2 euros in 2019); including this tax, the management fee rises to 107.9 euros.
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