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@Banks: Your Overdraft Fees are Going, Going…

June 22, 2010
As I have mentioned before, banks are going to have to do something about their overdraft fee revenue and mobile is a great opportunity to keep people opted into fee generating, added value services.
Sandler O’Neill and Partners quantified some of these lost revenues for Wells and B of A:
A Sandler O’Neill & Partners report last month said Bank of America, the nation’s biggest bank, could suffer the largest hit to annual revenue from a loss of overdraft charges — about $2.2 billion per year at the high end. Bank of America had total revenue last year of $119 billion.

Wells Fargo could lose $1.1 billion in revenue from lost fees, the second-biggest hit, according to Sandler O’Neill. It had revenue last year of $88 billion.

What will hurt even more through this rocky economic non-recovery is that consumer have increased use of overdraft and other buying power enhancing products.  Further case-in-point for the mobile as a tool to address customer need.
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