Hefty ATM Fees Add to Consumers’ Dissatisfaction

Bank Transfer Day may have passed, but consumers are still feeling the sting from a variety of bank fees. Most consumers are accustomed to paying ATM fees when withdrawing money at a bank other than their own, but in recent years withdrawal fees have gone up leaving consumers with hefty ATM fees.

Ally Bank recently conducted a survey to see if consumers are aware of how much they pay in ATM fees yearly, and only nine percent of respondents chose the correct answer. To benchmark these numbers, Ally Bank cited research from consulting firm Oliver Wyman. The firm found that Americans spent $7.1 billion in ATM fees in 2010. Ally Bank survey respondents chose answers ranging from $100 million to $2 billion.

Survey respondents were also asked to identify what type of banking fees they feel are acceptable. Here are the top line results:

  • 84 percent of respondents do not believe it is acceptable to charge a fee for checking accounts
  • 79 percent do not believe it is fair to charge a monthly maintenance fee
  • 77 percent do not think it is appropriate to charge an ATM fee

Does your financial institution charge ATM fees, and if so, how do you communicate with customers or members about the fees? Let us know in the comments section below, or Tweet @bankingdotcom.

 

Will 2011 Mark the Return of Online Services Fees?

A recent publication of Online Banking Report underlines the need for online banking to become a profit center rather than a cost center. There are a number of ways to improve the profitability of this channel in order to accomplish this feat. Premium online services top the list, supporting segmented offerings that can improve fee income, retention and customer acquisition. OBR editors believe that as more users go online, a market will grow for premium consumer services along the lines of American Express and Federal Express. Creating a lending center and providing mobile, credit monitoring and OFM also rank high on the list. For more information see OBR’s NetBanker blog.
How do you plan to improve your profitability in order to meet your strategic goals in the year ahead? What would it mean to your institution if your online channel became a profit center? Let us know in the comments section below.