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Why do consumers choose to bank with BAC?
Posted on 9/29/11 at 12:25 pm
Posted on 9/29/11 at 12:25 pm
Amongst a litany of other reasons not to bank with BAC, why would someone want to pay $5/month to use a debit card at point of sale when you can get cash or points using a host of other bank branded credit cards??? Does not compute.
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Posted on 9/29/11 at 12:28 pm to tirebiter
I'm pretty sure I've seen studies saying branch location(s) are one of the primary reasons people choose a bank.
Posted on 9/29/11 at 12:32 pm to tirebiter
I just read that article. I don't bank with BAC and likely never will. The local and regional banks will gain costumers from BAC as a result of the $5/month charge.
Posted on 9/29/11 at 12:37 pm to GumboPot
quote:A bank customer who frets over a $5 monthly charge is usually not a profitable customer for the bank.
The local and regional banks will gain costumers from BAC as a result of the $5/month charge.
It's the old 80/20 rule for bankers.....
Posted on 9/29/11 at 12:38 pm to GumboPot
I just shite canned Regions cause they said they were going to start charging me.
Posted on 9/29/11 at 12:52 pm to LSURussian
Why don't we call a spade a spade and speak to banks likely trying to offset the revenue that may be lost from merchants via the Durbin amendment? It's not like bank customers aren't already being arse raped on deposits and CDs held at said banks. I have no idea why consumers choose these places to bank with as who doesn't have direct deposit so a bank on the corner isn't necessary.
Posted on 9/29/11 at 12:57 pm to tirebiter
quote:Does your company give away its goods/services for free? Mine doesn't......
It's not like bank customers aren't already being arse raped on deposits and CDs held at said banks.
Posted on 9/29/11 at 1:02 pm to LSURussian
It is not uncommon for companies to give services away if they are being compensated from other parties.
Banks make enough money from fees charged to merchants to not have to charge for debit card.
Banks make enough money from fees charged to merchants to not have to charge for debit card.
This post was edited on 9/29/11 at 1:03 pm
Posted on 9/29/11 at 1:04 pm to tirebiter
BAC, SunTrust, Regions, etc. have all decided to do this because of the Dodd/Frank bill.
SunTrust will waive the $5 if you pay your mortgage through them.
SunTrust will waive the $5 if you pay your mortgage through them.
Posted on 9/29/11 at 1:11 pm to tigeralum06
quote:Not after the Dodd/Frank bill put a limit on merchant debit card fees. Prior, yes. Now, no.
Banks make enough money from fees charged to merchants to not have to charge for debit card.
Posted on 9/29/11 at 1:21 pm to Golfer
quote:
BAC, SunTrust, Regions, etc. have all decided to do this because of the Dodd/Frank bill.
SunTrust will waive the $5 if you pay your mortgage through them.
Or you have direct deposit through work or you carry a certain balance in your checking account.
I need to make the switch soon...I absolutely hate that they are going to nickle and dime me on a checking account. I don't have any other accounts with ST and they are close to losing my only one.
Posted on 9/29/11 at 1:25 pm to LSURussian
Give away is too broad a category, many ways to generate revenue. Even during normalized rate environments the TBTF banks offer below market deposit rates. Yes, I have a target on BAC, that bank and its executives are high on my shite list for a multitude of reasons and I have never had a financial relationship with them as customer nor direct investor.
There are too many better alternatives than banking with TBTF banks, although if a large regional doesn't hurry up on something I've had in front of them the past 45 days I'm moving on from then as well.
There are too many better alternatives than banking with TBTF banks, although if a large regional doesn't hurry up on something I've had in front of them the past 45 days I'm moving on from then as well.
Posted on 9/29/11 at 1:27 pm to lynxcat
quote:They will probably privately celebrate when you close your account.
I don't have any other accounts with ST and they are close to losing my only one.
I half jokingly said one day in my bank's ALCO meeting that we should identify the customers we were losing money on and flag their account so that when they went into their branch, the teller would hand them a map of locations of competitors' branches which were more convenient to where the customer lived.
I still like my idea......
Posted on 9/29/11 at 1:31 pm to LSURussian
They weren't giving anything away then; they're not giving anything away now. No one does. The only difference is before you couldn't see how they were charging you. Now you can.
Posted on 9/29/11 at 1:40 pm to Cold Cous Cous
I agree. The merchants got charged and presumably they passed those costs along to the consumer. Now the merchants get charged less but they keep their prices the same. The banks lost fee income and must make it up somewhere else to maintain their profit margins and efficiency ratios.
Posted on 9/29/11 at 1:43 pm to LSURussian
So in your OPINION, now banks do not make enough money in merchant fees to cover the cost of a checking account?
So banks that do not charge fees for checking should be going out of business soon?
So banks that do not charge fees for checking should be going out of business soon?
Posted on 9/29/11 at 1:46 pm to LSURussian
Anyone know if USAA will charge for a checking account with them? Also, how do you deposit a check into a USAA account if there aren't any branch locations around.
Posted on 9/29/11 at 1:47 pm to LSURussian
quote:
Now the merchants get charged less but they keep their prices the same.
In the short run, yes, because no one is going to immediately lower their prices based on this. But in the long run I think consumers will benefit, as the merchants can't keep their prices artificially high forever. But instead of lowering prices they'll just wait longer to raise them.
Posted on 9/29/11 at 2:17 pm to LSURussian
quote:
They will probably privately celebrate when you close your account.
I half jokingly said one day in my bank's ALCO meeting that we should identify the customers we were losing money on and flag their account so that when they went into their branch, the teller would hand them a map of locations of competitors' branches which were more convenient to where the customer lived.
This makes no sense. I am a prime candidate for a mortgage in a couple of years and I will be creating multiple other accounts in the near future. I currently have no need for those vehicles yet, but I am the exact customer banks should be targeting to keep.
Posted on 9/29/11 at 2:18 pm to tigeralum06
quote:Yeah, that is exactly what I wrote....
So banks that do not charge fees for checking should be going out of business soon?
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