The New York Times published an article last week about Wal-Mart gaining traction for its banking services because of customer dissatisfaction with bank fees. If you missed it, it’s available here.
A banker reading the article must have thrown up her hands in disbelief. Wal-Mart, the company everyone usually loves to irrationally bash, is lauded for offering a debit card for a $3 monthly maintenance fee, while Bank of America is teetering on a Congressional inquiry for its $5 monthly fee! Moreover, customers love the $3 fee per check cashed that Wal-Mart charges. We can only imagine what would have happened if B of A announced that same fee.
How could banks see such a maelstrom for the same fees that Wal-Mart and other entities would charge? More importantly, what should banks do about it? (more…)