National ATM networks needed for competition

The competition regulator yesterday gave further endorsement to the threading together of automatic teller machine networks in order to support competitive forces in retail banking.

The ACCC yesterday released its draft determination clearing the agreement between Bendigo and Adelaide Bank and Suncorp Metway to not charge fees to each customers for use of ATMs.

The two banks announced the plan in December last year and the ACCC provided interim agreement last month. The fee free arrangement (which may save customers $2) came into affect earlier this month.

In the draft the Australian Competition and Consumer Commission noted that in past inquiries into takeovers of retail banks that the extent of a financial institution's ATM network was taken into consideration by consumers in choosing between financial institutions.

It also said that the physical distribution of banking services was a key determinant of consumer choice in some retail banking products such as transaction accounts. The ACCC said this applied to small business and agribusiness products as well as consumer accounts.

Credit unions already have a similar arrangement in place with National Australia Bank over waiving fees on ATMs.

Cashcard also has a couple of minor arrangements in place with very small banks.