How To Grow Checking Revenues and Accounts

Service charges on deposits are down for the industry as the WSJ reports in Bank’s Fee Bonanza Dries Up.  The article points out regulatory changes spawned the change in revenue growth.  Many may curse the darkness of regulation, but savvy bankers will light the candle of product strategy. Revenues are not down because of regulatory changes, but because of the lack of successful response by bankers. So how do banks grow customer and fees? 

The key is understanding what fees consumers willingly pay.  Revenues and accounts will grow where customers see value.  For example, while bank fee revenues on transaction accounts are down 20%, PayPal grew revenues every year in the last five by over 20% and now over 60% of U.S. households have a PayPal account.  Yet, PayPal cannot offer transaction services that do not settle to a bank checking account and credit card.  What they do offer is simplicity for in-store and online shopping, greater security and simple, online transaction liquidity with BillMeLater (now PayPal credit).

If your checking accounts offered a similar service package you would see revenue and account growth like PayPal has, as our PaySound^® clients can attest.  It is time to realize revenue and account growth is not limited by regulatory issues, but marketing and product strategy, and turn-key solutions are available to you.