04Mar2024
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The Hidden Fee Labyrinth: From Banking to Automobiles πŸ¦πŸš—

Disclaimer: The views and opinions expressed in the vapa Swiss independent wealth management blog posts featured on this page are solely my own and do not necessarily represent the views of any institutions or organisations I may be associated with. These posts are intended to share personal insights and perspectives and should not be interpreted as official statements or positions of any affiliated entities.

It’s no secret that banks and financial institutions often have a complex fee structure. As clients, we frequently work through financial jargon to understand the multi-page fee booklets. This brings me to the parallel I wish to draw: the automobile industry.

Cars have become more of a maze of fees and hidden costs – quite like banks. A car is no longer a one-time purchase; it comes with ongoing subscription costs. My personal experience was a real revelation. After three years, I was warned that certain services in my car needed repurchasing.

Sadly, I missed the deadline and had to relearn how to parallel park. Of course, I felt compelled to renew the subscription to avoid appearing on a TikTok channel. However, even with features like the β€œdriving assistant,” I failed to see any significant improvements that would justify an ongoing subscription without major enhancements provided. It’s like dining at a restaurant, only to find out later that the running air conditioning and restroom visits are billed separately.

My take? This trend of subscription monetising features that used to be standard is alarming. Clients are frustrated by these emerging extra fees in banking and the auto industry. Clients should not feel like they are being constantly nickel-and-dimed.

Disclaimer: I am not alluding to Tesla in this instance. With Tesla, I might be more tolerant. The consistently visible upgrades, advanced technology, and superior performance, all at a reasonable cost, justify a subscription fee.

Source: LinkedIn

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The Hidden Fee Labyrinth in Banking and Automobiles

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