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Tuesday, November 1, 2011

Bank of America drops debit card fee

Observation:  Over the past few weeks, I’ve written on a couple of occasions about the banking industry’s effort to recoup revenues that were lost because of the new regulations that followed the financial meltdown of 2007-2009.  (See “Is your bank worth $5 a month” from 10/14, and “Banks prepare for a showdown” from 10/31.)  Well, a funny thing happened on my way to the airport this morning:  My smartphone flashed with a news release that gives the story a new twist.

According to a breaking news report from the Washington Post (released just moments ago), Bank of America will drop their policy of a $5 service fee for using the bank’s debit card services.  Click here to see the story.

Implications:   From banking to Netflix to New Coke.  Sometimes, the best way to prove the value of consumer research is to not do it... or not do it well.

Planning any changes?  Have you received input from your most valuable stakeholders? 

I wonder if these more customer-friendly positions will gain favor and forgiveness from consumers... or whether this will simply whet the appetite and aid the momentum of consumers (not just those behind Occupy Wall Street and similar groups).  Is the opportunity for smaller, local/regional banks and credit unions thwarted by this move... or simply dramatized by it?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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