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Tag Archives: Demand Deposit Account
Can Non-Affluent DDA Customers Still be Profitable?
Topics: Customer Acquisition and Retention, Operational Efficiency, Trends
Tagged: Affluent Customers, Automation, Cost Reduction, Demand Deposit Account
According to a recent news article, JPMorgan Chase (JPMC) has claimed that about 70% of its customers with less than $100,000 in deposits are unprofitable. This statement represents the latest fallout from the Durbin Amendment and other recent regulations that have limited the fees financial institutions (FIs) can charge. In response to this reduction in… Continue reading →
Profitability vs. Transparency: The Future of DDAs
Topics: Account Opening
Tagged: Demand Deposit Account, Online Banking, Transparency
It is that time of year again for open enrollment in my company’s health insurance plan. As I sift through all the information about the new plan and forms to complete, I realize how much I hate dealing with insurance. I’m fortunate to work for a company that makes it as easy as possible and… Continue reading →
Turning a Threat into a Promise: Regaining Profitability for Checking Accounts
Topics: Account Opening, Customer Acquisition and Retention, Trends
Tagged: Alternative Data, Demand Deposit Account, Durbin Amendment
Recently Zoot’s Tom Johnson and TowerGroup’s Nicole Sturgill, research director in the retail banking and cards practice, presented a webinar entitled “Checking Account Profitability: Turning a Threat into a Promise”. It was an event full of great insight on the state of demand deposit accounts and what some large institutions have done to remain profitable… Continue reading →
Thankful for Industry Challenges
Topics: Regulations, Trends
Tagged: Demand Deposit Account, Durbin Amendment, Financial Crisis, Trust
This is a week where we reflect on what we are thankful for. Daily headlines might suggest there isn’t a lot the banking world has to be thankful about, but I would disagree. 2011 has been a tough year for the financial industry, no doubt about it. Billions of dollars in revenue will be lost… Continue reading →
Well that didn’t work! What’s next for DDA and debit account fees?
Topics: Account Opening, Customer Acquisition and Retention
Tagged: Cost Reduction, Demand Deposit Account, Trust
Now that Bank of America has reversed its position on charging customers a fee for using their debit card and early adopters of monthly debit fees like SunTrust have also backed down, banks are left with the same question they started with. How can they bring profitability back to demand deposit accounts (DDAs)? Fortunately, while… Continue reading →
Best Practices or Next Practices? Bringing Innovation to Debit Card
Topics: Customer Experience, Regulations
Tagged: Demand Deposit Account, Transparency
It’s no surprise that at a recent financial industry conference the focus of many discussions and presentations focused on regulatory changes that are affecting the profitability of banks. The Durbin amendment got its fair share of coverage as financial institutions discussed how to recoup lost debit interchange fees. Several large banks have already announced that… Continue reading →
The Portrait of a Profitable DDA Customer
Topics: Account Opening, Regulations, Trends
Tagged: debit card, Demand Deposit Account, Durbin Amendment
There is an interesting, occasionally intense, debate happening right now on the topic of demand deposit accounts (DDAs). With the new cap on debit interchange in place, banks are looking for ways to shore up the profitability of their DDA portfolios. Consumers and consumer advocacy groups are pushing back against attempts by banks to recoup… Continue reading →
Is Charging a Debit Fee the Right Move?
Topics: Account Opening, Regulations, Trends
Tagged: Credit Card Regulations, debit card, Demand Deposit Account, Durbin Amendment, Transparency
Many banks are struggling to respond appropriately to changes in debit interchange. Several large institutions have already announced plans to implement a monthly fee for consumers using debit cards. Whether this is a genuine response or a political maneuver still remains to be seen, however, it is clear that the American payments industry will soon… Continue reading →
Bringing Profitability Back to Demand Deposit Account Opening
Topics: Account Opening
Tagged: Alternative Data, Cross-sell, Demand Deposit Account, Instant Prescreen
New regulatory requirements and consumer behavior changes are challenging the traditional profitability model of demand deposit accounts (DDAs). In fact, TowerGroup predicts banks will lose $25 billion annually in overdraft and interchange fees due to new regulations. In response to the changing retail demand deposit landscape, Zoot launched a new solution designed to bring profitability… Continue reading →
Profitability in DDA: Banks Need to Change Their Tune
Topics: Account Opening
Tagged: Cross-sell, Demand Deposit Account, Fraud
Banking industry news has been like a sad country song for the past several years. I lost my job, my truck broke down, and my girlfriend left me and took my dog. Translation: layoffs are abundant, banks are closing, customers are retreating and new regulations are taxing resources and taking away the profits of banks.… Continue reading →