Letter to the editor: Time for banks to pull their socks up

[RE: Hargreaves Lansdown reaps cash interest reward as market growth pushes up assets under new CEO]

Dear Editor,

I write to express my concern about the insufficient efforts made by the financial industry to pass on the advantages of central bank rate hikes and recent windfalls to its clients. While some institutions champion a customer-first approach, promptly sharing benefits with those who entrust them with their funds, the majority seem to follow a different path.

It appears that, after years of low interest rates, the prevailing banking playbook involves reaping the rewards of rate hikes, often at the expense of their clients.

I refuse to accept the status quo. In response to this industry landscape, where clients’ interests are not fully served, we have established our immediate rate hike pass-on policy, reflecting our commitment to ensuring clients directly benefit from favourable market conditions.

We are also proud to be revolutionising pricing in trading, offering competitive rates among major banks and brokers. By lowering costs, trading firms and platforms can maximise potential gains for their growing number of clients. In today’s investment landscape, we remain committed to facilitating diversification across asset classes. Diversification, as we believe, is truly the “only free lunch” in investing.

Yours faithfully,

Kim Fournais
Saxo Bank, CEO