Last week the HSBC group bank unveiled plans to charge £10 a month to current-account customers who pay in less than £1500 a month - although, in an attempt to generate income through cross-selling, those who take out products such as insurance, credit cards or savings plans will be exempt. First Direct claims the fee, which comes in next February, will affect 15% of its customers.
Mike Phillipson, managing director of advertising agency Propaganda and former First Direct head of brand marketing, said he was not against the charge, but questioned its implementation. 'First Direct has gone from being a hassle-free bank to one that's hassle,' he said. 'One of the propositions we developed was that you get on with your life and not worry about your banking.'
Nationwide head of brand marketing Peter Gandolfi said the bank's move had been 'surprising' and that 'the PR could have been handled a lot better'.
Saying that the charge could have a negative impact on consumer perception, he added: 'When you see the proportion of customers it will affect, you wonder whether it was a move that was worth it.'
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