April 7, 2022
New playgrounds for fintechs and big players in the banking world
It’s interesting to note the changes in the strategic priority list of fintechs and banks for 2022.
1. Cancellation of overdraft fees
According to Consumer Financial Protection Bureau (CFPB) data, Bank of America, J.P. Morgan Chase and Wells Fargo were responsible for 44 percent of fees (estimated $15.47 billion) collected in lieu of overdrafts in the year 2019. 80 percent of the amount collected as overdraft fees were received from less than 9% of their customers.
Despite these encouraging figures, most banks in the USA are modifying or completely removing overdraft fees to level up with fintechs charging zero overdraft fees. This move is targeted towards making customers happy and retaining their loyalty in future.