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U.S. Bancorp is falling in line with other big banks that have recently replaced their free checking product with one that has some fees attached.
May 4 -
Banks trying to solve their checking account woes are going the way of the cable company and increasingly selling tiered and bundled packages of services.
December 28
Boca Raton, Fla. — The majority of U.S. Bancorp customers have found ways to avoid paying monthly fees, after the bank phased out its "free" checking accounts, an executive told American Banker.
U.S. Bank is one of several large banks to
The Minneapolis bank revamped its tiered checking account system
But U.S. Bank customers can
"The biggest surprise when we reintroduced our checking line was [that] we underestimated the number of customers who would find a way to have accounts waived. We thought more would pay a fee," Stone said in an interview at a retail financial services conference on Tuesday.
For bank customers faced with new fees, it's "human nature" to find a way to avoid paying them, he said.
"It's a game: 'Oh, I need to have direct deposit, I'll figure that out. I need to have some money in the account, I'll figure that out,'" Stone said. "The majority of our customers find a way to have account fees waived."
In many cases, the waiver might not require any extra effort on the part of the consumer, according to Carl Rutstein, a senior partner at Boston Consulting Group, who joined Stone for a panel discussion about improving retail bank performance at the conference.
"Often the waivers [apply for] things that customers needed anyway," Rutstein said in an interview. "So if you have your mortgage with U.S. Bank, you probably qualify for a package."
Even if some customers are not reacting negatively to new fees, Stone cautioned that banks still need to be careful about how they introduce such price changes.
For example, Bank of America Corp. continues to find itself
"I think we've been very deliberate about fee changes. You know of good examples from the marketplace recently, a major bank and
The annual Best Practices in Retail Financial Services Symposium was sponsored by American Banker and its publisher, SourceMedia Inc.