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DBS has raised its e-transaction fee for initial public offering (IPO) applications, and the 100 per cent increase is making some see red.
Since May 23, retail investors who applied for IPO shares launched on or after that date, through the local bank's ATMs and Internet banking, were surprised that they now have to pay $2.
A company launches an IPO when it wants to offer shares to the public and to financial institutions ahead of a listing. The revision of charges also applies to bonds, ST-Notes, securities and rights that come under its Electronic Security Application.
Customers were informed of the new charge when they asked for these services. But they are questioning the need for a hike — especially as other local banks have not budged on their $1 transaction charge.
"The 100-per-cent increase doesn't make sense ... Although $1 is a nominal fee, why should I pay extra when other banks are not doing it?" said Mr D Leong, who works for a bank.
The change has also gotten Netizens fired up. PleasantGuy, on the Channel NewsAsia forum, demanded that DBS "justify their case". Others like Jahtl said that "those applying for IPOs are helping the banks make extra income" while Stonefish suggested switching to another bank "before they also raise their price".
Responding to queries from TODAY, a DBS spokesperson explained that "while every effort is taken to maintain the charges, the costs in providing these services have increased over time". The last time charges were revised was in 1993.
Some people were also worried that other local banks would take their cue from DBS. "Why does the largest bank in Singapore have to do this? Usually, when DBS implements something, the other banks will also follow," said Mr Leong.
OCBC and UOB have both said they have no plans to increase the $1 fee for now.
- TODAY/so
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