How can Banks make more money without raising prices?

Banks across the country charge fees for all types of services…have you ever looked at the service charge schedule of a bank? Typically, those charges stay the same for years and are never reviewed for potential increases. Just go to a bank’s website and click on service charges and most banks publish their fees. Notice at the bottom of the page the date of the update to the fee schedule. Many times, it has been 5+ years since any changes have been made.

At Strunk we developed a program thirty years ago that increases fee income substantially without raising prices. Our Overdraft Privilege program focuses on the volume of checks/debits that overdraw an account rather than the fee the bank charges. Of course, we don’t want to encourage consumers to overdraw their account, but we don’t want to discourage them either.

Overdraft Privilege gives consumers a choice on how they want their account handled, rather than the bank deciding how the consumer wants their account handled. For checks and ACH items that overdraw and account, those debits are typically not returned to the merchant since fees pile up when that happens. Conversely for debit card and other electronic transactions that overdraw the account, consumers must opt in for those overdrafts. It’s been like this since July 1, 2010.

There are two components to generating fee income for a bank. 1) the fee being charged and 2) the number of “uses” for that service. ODP is all about the “uses” and not the fee.

Let Strunk revitalize your old ODP program to generate some additional income. Contact Strunk at info@strunkaccess.com or call us at 800.728.3116.