New study by N26 reveals 67% of Irish consumers have experienced unexpected banking fees

A new study by digital bank, N26 has uncovered that almost half of Irish consumers (47%) are either irritated or annoyed by their current bank. The research asked Irish consumers whether they had ever received an unexpected fee from their bank. A staggering 67% reported they’d been hit by a fee they didn’t know was coming, with ATM fees (44%), checking account fees (33%), foreign transaction charges (29%), credit card fees (28%) and overdraft fees (25%) listed as the most common charges.

The research showed that 42% of Irish people have been stung an average of three times in the last 12 months, costing approximately €19.90 each time, equating to €39.80 per year in unexpected fees.

Regionally, those in Connacht report paying the most on unexpected fees, paying an average of €23.72 for each unexpected fee versus an average of €17.04 in Munster, €17.05 in Ulster and €20.54 in Leinster.

A generational gap was also apparent, with 71% of those aged 25-34 saying they’ve received an unexpected fee, compared to just 42% of those aged 65+.

Perhaps unsurprisingly then, when asked for the one thing Irish people would change about the way banks operate, scrapping hidden fees and charges came out on top for almost half (47%). That number was highest in Greece (50%) and lowest in the Benelux regions (33%). Life has changed significantly since COVID-19, so 36% of Irish consumers also reported they’d want to see interest fees and additional charges scrapped when times are tough.

Some European markets are hit harder than others when it comes to unexpected charges. Spain has the highest number of people (81%) reporting they’ve experienced these fees, while Italy has the lowest at 59%.

In response to these global banking concerns and frustrations, N26 has launched a virtual initiative: the Big Banking Chat. It’s a global campaign to open up the conversation, get to the heart of what consumers are really worried about and cut through some of the unnecessary complexity to create the world’s largest online banking discussion.

Sarunas Legeckas, Head of Ireland, N26, commented on the study: “If we don’t talk about what annoys us about banking we can’t avoid those same problems hurting us again and again in the future. We already know people are worried about their finances but it’s also important to dig deep into what really bugs them”. 

“As part of the Big Banking Chat, we wanted to surface the frustrations we all have about banking so we can respond by helping put consumers back in control. N26 was built on a belief that banking should be simpler and more transparent. Our ambition has always been to build a bank that people love to use, and for us, that means listening to consumers and doing things differently.” 

“Finances remain one of the last great taboos and the research showcases the need for banks to speak honestly and transparently so that people can regain control over their finances, and that’s what The Big Banking Chat is all about,” concluded Legeckas.