Converting Basic Financial Services Fees into Prosperity: An Untapped Opportunity for Consumers and Banks
Fees generated frombasic financial services like overdraft protection and out-of-network ATM charges now add up to $58 billion in annual revenue for financial institutions. Yet, for as much money as is generated from these fees and for as controversial as they have become, very little is actually known about who relies on these fee-based services, which hinders the development of appropriate policy and market-based responses. Using data from a new survey of California households commissioned by the Annie E. Casey Foundation, The Brookings Institution, The Pew Charitable Trusts and the William J. Clinton Foundation, this paper examines the underlying market for four major basic banking fees.
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