Banks have started to raise their fees for most of the financial services they offer, in a bid to drive consumers away from the sector.
The move, which banks said would save the average customer more than $1,000 over the next three years, comes as regulators are struggling to rein in the industry.
“We’re taking steps to reduce the volume of financial services that people need to choose from,” said Jeff Bader, chief financial officer at UBS Group AG, which offers banking, investment banking and insurance.
“We are also looking at how we can better manage and reward the most efficient use of our resources and the ability to scale.”
Banks are raising their fees to help compensate for losses caused by the 2008 financial crisis.
But they are still charging much more than the average consumer to make their products and services more affordable.
“You don’t have to spend as much as you would if you had a debit card,” said Matthew Haney, senior director of consumer insights at Barclays Plc, which is one of the largest U.S. banks.
The changes are aimed at pushing consumers to alternatives, including online and mobile payment services, as well as to reduce costs for banks and their customers.
“It is important that banks do not become the gatekeepers to a large segment of the economy,” said David Wiesner, chief executive of Bankrate.com, a website that provides data on U.K. banks’ finances.
“You can’t compete on price, you can’t match up to the rest of the world.”
Bader said that the new fees will be set at 3 percent of a bank’s assets and 2.5 percent of total assets by 2019, down from the current 4.5 percentage.
The banks will also be required to use “fiduciary disclosure” in all transactions, and to disclose the fees they charge their customers when they make decisions that impact the bottom line.
Banks have been struggling with soaring costs as they struggle to compete with digital companies that offer more consumer choice and are more transparent.
Bader said his firm expects that by 2019 more than 70 percent of banks will be charging customers for online banking.
The moves come as regulators in the U.L.S., Europe and other countries grapple with the fallout from the financial crisis, and as regulators and bankers look to reduce consumer spending.
The U.P.S.’s move comes as some of the U’lS.’ biggest banks, including JPMorgan Chase & Co., have been hit with the biggest losses from the crisis.
In September, the UBS group, the world’s biggest financial services firm, said it was cutting 1,000 jobs amid losses from a failed investment in the mortgage lender Countrywide Financial.
Bader also said that Berenberg Group AG will begin to sell off assets to help its customers save more money.
The company, which has about $4 trillion in assets, said last week it would sell some assets to avoid more losses in the coming year.
Biden on Thursday said that consumers should not expect to save money by moving to a more cost-efficient financial service, saying consumers would have to be more efficient and cost-conscious to do so.
Budgets at U. S. banks have grown in recent years.
The average consumer paid about $1.19 for credit card debt in 2014, according to a report from credit-rating firm Standard &.
Unsecured loans and mortgages grew by 17 percent and 6 percent, respectively.
The banks have faced stiff competition from Amazon.com Inc., which in 2016 was the top U.N. lender.
It has said it plans to boost fees to 5.8 percent from 5.1 percent.
U.S.-based Amazon is also trying to gain a foothold in the world of mobile payments.
Amazon is trying to make mobile payments as easy as credit cards and have set up an app that lets consumers swipe a credit card at stores.
But banks are struggling with the cost of building and maintaining the infrastructure.
Barker said his bank has about 1,500 branches around the world, with more than 80,000 employees.