Banking Blog

Finance Blogs » Banking » Digital banking fees on the way?

Digital banking fees on the way?

By David McMillin · Bankrate.com
Friday, January 27, 2012
Posted: 9 am ET

As the banking industry works to determine how to increase profits, it appears the answer may lie in an obvious place: the Internet.

In a new survey of more than 3,000 consumers around the world, the majority of account holders indicated they are are willing to pay around $15 each month for digital banking services. "The new digital tipping point," a report from consulting firm PwC that analyzes the survey's results, highlights the move to mobile and online personal finance tools. The conclusion: Members of Generation Y will lead the accelerated shift to digital and search for banks to lead the way with new tools and features.

Here's a look at the top three digital offerings that respondents would be willing to pay for at banks:

  • Twitter/Facebook account notifications.
  • The ability to store loyalty card info and convert points to cash.
  • Spending analysis tools.

It turns out account holders are willing to pay a premium for good customer service, too. In the U.S. alone, more than 60 percent of respondents answered they have spent more on a product or service because of a history of good customer service with the company.

The results are quite surprising to me. From monitoring social media posts during the hoopla of Bank Transfer Day to reading comments from readers right here at Bankrate, it seems that most customers will not tolerate any additional fees. However, the PwC survey shows account holders aren't just looking for the cheapest way to handle their saving and spending. Many of them are looking to jump on the next wave of innovation even if it comes with a price tag.

Currently, we see a lot offerings at banks that give account holders the opportunities to avoid fees, such as enrollment in paperless statements to bypass a monthly maintenance fee. With account holders indicating a willingness to shell out some cash, be on the lookout for opt-in offerings that add fees in exchange for access to emerging account features.

What do you think? Would you be willing to pay for more sophisticated online and mobile tools for your money management?

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
87 Comments
D Walker
March 26, 2012 at 12:38 am

I'm escaping fees by going digital, so I wouldn't pay anything for mobile banking/finance tools. Too insecure etc. Don't we have enough security problems already? We don't need more leaks than we've got. The greed of big banks no no limits. They will soon succeed in driving smart customers to neighborhood banks or credit unions. Those left will be bled to death.

cRISPYTACO
March 22, 2012 at 10:36 am

And it was in 2010 deferred to comittee no less. Wow totally unprepared...

alvin Jenkins
March 18, 2012 at 3:44 pm

Eliminating the IRS ain't nothing but a joke!!! Whose brainchild is Prop HR4646? Someone's brain is operating near 'starvation.'

If you have to lie to make a point…
March 14, 2012 at 6:24 pm

Hey Paul,

Your comment about the "Obama 1% Tax" is simply not true at all. Your comment was:

***I am interested in hearing what banks and other financial institutions have to say about newly proposed legislation that will tax every single banking transaction made, including deposits, and withdrawals, as well as every credit card and debit card purchase. Its HR4646 and its coming right at every banking American thanks to Mr. Obama and his team of underhanded robber-barons!***

This is not true and it is unfortunate that you did not do even a tiny bit of research or anything. This is a chain-email lie that has been forwarded by YOUR favorite propaganda group to YOU. I hope that you don't make all of your decisions based on email from the interest groups to which you subscribe.

Go to google, then type in HR4646.

Paul
March 13, 2012 at 6:46 pm

I am interested in hearing what banks and other financial institutions have to say about newly proposed legislation that will tax every single banking transaction made, including deposits, and withdrawals, as well as every credit card and debit card purchase. Its HR4646 and its coming right at every banking American thanks to Mr. Obama and his team of underhanded robber-barons!
Every American who wants to cash a check, deposit a check, make a purchase with a bank card, or pay a bill through their bank will have to pay that tax on every single transaction if its allowed to pass. They are saying it will eliminate the yearly federal income tax by 2017, and of course, the government has never lied to us about money! Yeah right!