Competition and technological advancements have diminished banks' potential to boost revenues from overdraft fees, NSF fees, and other service charges on deposit accounts, this article says. After all, consumers can easily switch banks if they dislike the fee structures, and digital institutions can offer attractive terms because their overhead costs are low. As the article notes, Ally Financial eliminated overdraft fees in 2021, and Bank of America dramatically slashed its overdraft fees the following year.
One expert advises banks to focus on cross-selling, where they have an advantage over fintechs and credit unions. Another suggestion: double down on the personalized customer service for which community banks are known.
Any other tips for the group?
------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
------------------------------