This might caused customers to switch banks but apparently only 7% of people will move their primary bank account compared to last year at 12%. Its because customer thinks that its hassle to move their account elsewhere.
Bank of America won't charge extra fee for customers with mortgage from the bank or having $200,000 or more in their bank account.
I think with this economy the banks are trying to earn money from many ways as possible and this is one of them. With little fees can make a different for banks.
It is true, the banks are trying to obtain an additional source of money in light of the harsh economic climate. However, though the rate of customer retention is less than the previous year we might end up seeing a steady increase in this number with the economies recovery progress.
ReplyDeleteI think it is not a bad idea. Banks obsolutely can gather more fees as a source of income, to cover some expense of bank itself.
ReplyDeleteFor customers, there definately will be nagetiva voices. But changing account from one bank to another is not an easy and fun thing to do. Their credit history might be influenced too. For most of people, 5 dollars a month would be a acceptable fee for the convenience brought by online banking.
The inconvenience of being able to change banks is the cost for the convenience and benefits of online banking. It is irrational for customers to think that they should be able to have it both ways, and they need to be able to settle for this one inconvenience if they want the benefits. Is it wrong for banks to target online bankers with extra fees because they know they won't change? Maybe. But more importantly is is wise business management, and consumers need to be aware of this before committing themselves to online banking.
ReplyDeleteIt is amazing to see how far technology has come in the past decade. More and more services are able to be done online which in time, can lead to a loss in jobs in certain areas. Bank tellers could very well become a thing of the past as we can now simply take a picture of our checks and deposit them from our very own homes.
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