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Seems Like Larger Banks Are Raising Fees by the Minute

September 27, 2012

Robin Sidel’s 8/24/2012 Wall Street Journal article ‘Free’ Checking Costs More highlighted the above fee increase trends.  The article also points out the fact that larger banks are still testing the limits on how much they can charge before they start losing customers at a substantial rate.  What is the alternative to banking with larger banks?  The options can be limiting.  If account holders are not comfortable storing their money under a matress, than they will be searching for institutions that do not have higher fees.

It’s time for smaller institutions to flood the market with advertisements highlighting these increasing fees.  How will community banks and credit unions respond—who are exempt from some of the most costly federal regulations that are spawning these increases in fees (those who have assets less than $10 billion in assets)?

Many FMSI clients are experiencing annual double digit percentage increases in their asset size.  What are these institutions doing that others are not?  One common theme our clients share is that they pursued an innovative approach which allows them to staff their branch network by forecasted transaction volumes—a practice that Celent estimates just three percent of the market is doing.   Perhaps this innovative approach is not the only innovation these forward thinking organizations are utilizing.  Innovative marketing, service and sales approaches are likely taking place at these same institutions.  These are exciting times for those organizations prepared to take on these ripening market conditions.

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