“Naturally banks are efficiency and profit maximizers, but current rewards and overdraft fees policies are jeopardizing the long-term health of retail customer satisfaction and loyalty. By retaining 2 to 5 business day check clearing schedules and largest-first check payment policies, banks have seen their insufficient check fee income increased to $17.5 billion. However, that income, which represents only 6 percent of the U.S. banking industry non-interest income, has generated outsized customer discontent and defections and we predict, that left unaddressed, will prompt both legislative and judiciary scrutiny and regulation.”

Elizabeth Rowe
Group Director, Banking Advisory Services