How expensive is your bank?

vicshere says on Sep 9, 2008, 10:18:

you can say that again
the banks want it both ways at a high interest more so than N. America

listo

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ColombianoGringo (Moderator) (Trustee board) says on Sep 9, 2008, 10:21:

I once calculated that with many banks, it is hard to keep you fees under $50.000 COP a month even with an absolute minimum of transactions. These bastards charge you for anything imaginable. This is particularly insane when you think that the minimum wage that a lot of people earn is under $500.000 a month. This means that these people have to spend over 10% of their meager earnings just to have a bank account. That is an absolute travesty.

On the other hand, bank fees in the US are almost non-existent if you know how to play by the rules.

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vicshere says on Sep 9, 2008, 10:37:

i am lucky i dont pay any fees at my bank but i have a special teacher university account

listo

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ColombianoGringo (Moderator) (Trustee board) says on Sep 9, 2008, 11:18:

You don't pay any of the typical fees for deposits, withdrawals and everything else those bastards can think of?

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jorgegdiaz (☼Travelguide writer) says on Sep 9, 2008, 11:20:

vicshere says on Sep 9, 2008, 11:24:

nope..... i have 15 ATM transactions per month from my bank...other banks they charge...even got a credit card free from annual service chrages

listo

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gringoloid (Trustee board) says on Sep 9, 2008, 11:34:

Are Colombian banks safe during a downturn? Is there anything like an FDIC in Colombia? Has there ever been a run on the banks?

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viajero123 (☼Travelguide writer) says on Sep 9, 2008, 11:51:

Noelito40 says on Sep 9, 2008, 13:29:

There is nothing more in Colombia that gets up my goat than the banks here. Their charges, processes, incompetence of their staff...I could go on and on!!! Of course their charges are outrageous (last week I paid 3k just to look at my balance in a Cajero (of my own bank!) and then another 3k immediately afterwards to take out money!) but what I really don't understand is why the Government and banks don't make it more attractive for people to have bank accounts (As was rightly pointed put by ColombianGringo, someone on the minimum wage would pay 10% in fees?? so why have an account. Surely free banking for (say) those on the minimum wage would mean more money in the banks? and from a Government point of view, if they promote security so much, the fact that they effectively force people to carry large sums of cash around, mean that people are more liable to be the victims of muggings and burglaries?

Noelito

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NCMike says on Sep 9, 2008, 13:46:

Wow I didn't realize it was that way for people in Colombia. Charged a fee just to check your balance? Then another fee just to take out your own money?????????? Damn. I guess there's not enough competition among banks there. In the US, I'm always amazed that people don't shop around for the banks that have low fees, or use credit unions when they have that option. Still others here shoot themselves in the foot by not following the rules: not maintaining minimum balances, or writing bad checks, etc. Thank God I can be a member of the teacher's and state employees' credit union here. They actually pay me for using my money. The only fees I pay are if I use another system's ATMs, (.75), or if I were to screw up and write a bad check. I can pay all my bills online free, so I almost never write checks anyway. My debit/ ATM card has a Visa logo on it so that's what I use when I'm in Colombia and they just charge a 1% conversion fee. I have an adjustable mortgage with them at 5.25%, it has gone down as well as up, but within very reasonable limits.

Having a decent fair banking system is something we take for granted here. I hope it gets better in Colombia.

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viajero123 (☼Travelguide writer) says on Sep 9, 2008, 13:52:

Noelito40 says on Sep 9, 2008, 13:53:

NCMike, the reason I find it so annoying is because I am used to competition amongst banks (which includes free fees) but this is back home in Ireland. Believe me the Colombian cartel banks wouldn't know the word competition if it hit them in the face. I am usually very conscious of fees but in the case I outlined the reason was the bank's incompetence to which I referred (namely that one of the bank staff had told me that I could take out money from their cajeros, gratis, twice monthly...wrong!!!) and as for cheques, well I too am not accustomed to writing checks anymore, but of course in Colombia, I pay for my cheque book in advance!! so they get their pound of flesh (sorry, fee!) before I write even one cheque...

Noelito

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ColombianoGringo (Moderator) (Trustee board) says on Sep 9, 2008, 13:54:

I don't know this to be a fact, but I've been told by several people that most of the banks in Colombia are controlled by a small number of families. This could just be populist nonsense.

Maybe someone with a more intimate knowledge of the banking system in Colombia could shed some light on this.

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Noelito40 says on Sep 9, 2008, 13:56:

Isn't it the guy who owns GrupoAval who owns 5 banks?? Does Colombia have a Monopolies Commission??

Noelito

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ColombianoGringo (Moderator) (Trustee board) says on Sep 9, 2008, 13:58:

Well there are certainly some banks that don't fall under that grouping. I think BBVA and Banco de Santander is owned by Spanish entities. Banco de Credito claims to be associated with a Canadian company. However, many other "Colombian" banks are supposedly controlled by certain families.

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droble77 says on Sep 9, 2008, 14:06:

I commented in a thread a few months ago, that the bank institutions are one of the ways the big guy keeps the little guy down in Colombia, by nickle-and-dimeing them to death.

CG just provided some very interesting numerical breakdowns to really bring the point home.

And since these institutions are dominated by a relatively small group of people, there's not as much competition or motivation in improving service. For example, there is just one super rich Colombian who controls directly and indirectly about 90% of the shares of Grupo Aval a financial firm that owns Banco de Bogota, Banco de Occidente, Banco AV Villas, etc. This guy is worth 4-5 billion and is preparing his son to take over the empire once he's retired. No need for executive searches and Board of Directors in a family business! ;)

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viajero123 (☼Travelguide writer) says on Sep 9, 2008, 15:25:

ColombianoGringo (Moderator) (Trustee board) says on Sep 9, 2008, 15:45:

I've always thought that Davivienda was the strangest name for a bank. I remember going to the one in Chapinero with my grandmother as a very little kid(maybe four or five years old) and thinking that it must be some strange entity since it had such a strange name. I was used to names like Banco Cafetero and the like. I took the name literally to mean that they gave money to people to live off.

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viajero123 (☼Travelguide writer) says on Sep 9, 2008, 17:20:

panthdave says on Sep 10, 2008, 04:04:

Thats why Cash transactions are still King in Colombia...but slowly changing but the banks need to have incentive for people to open accounts and use debit cards and make deposits...There is like a million branches with Colombian Banks well accept Citibank and HSBC and now I know why they need to charge so they can cover there overhead....This is happening in the States there closing branches because the overhead is just too high...

panthdave Miami

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ColombianoGringo (Moderator) (Trustee board) says on Sep 10, 2008, 07:17:

No V. That is a Fritanga from up on La Calera right outside Bogota. It's a pic I found on Flickr. I have a bunch of pics from family outings out there, but I don't have a clue where I have them stored.

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curramberochris says on Sep 11, 2008, 17:02:

There was a thread on here a while back saying that Colombian banks don't pay interest on deposit on festivos!!!!!!!!! That is quite a few days of the year that they have your money for free!!

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