On-Demand Webinar: Checking Account Profitability: Turning a Threat into a Promise
Register to watch this TowerGroup/Zoot Webinar:
Original Broadcast: November 17, 2011
Speakers:
Nicole Sturgill, Research Director, Retail Banking & Cards, TowerGroup
Tom Johnson, VP of Product Development, Zoot Enterprises
Abstract:
The financial crisis has matured into a new normal for banks, defined by reduced fee income and increased compliance costs. Many financial institutions have come to the unsettling realization that the checking account in its current form is not profitable. Although banks can generate revenue through products, services, and fees outside of retail banking, it is not a practical long-term business plan to run the retail demand deposit account (DDA) product as a loss leader.
Institutions have been reviewing the DDA product set to determine what benefits should be eliminated and what fees could be added to reduce the losses facing the retail bank. Fourteen of the top 22 banks have placed restrictions on previously free checking accounts in the last year. The TowerGroup argues that financial institutions must look beyond the development of a new or changed product set and instead consider a new way of doing business.
This event promises:
- Expert perspectives on the industry trends that support the need for change and how to turn insight into action.
- Best practices on making checking account origination profitable again.
- Strategies to design a flexible account origination process that allows for tailored interactions to meet the needs of each consumer while promoting a profitable relationship with the bank.
