03/15/2022
The shift away from over-draft fees in banking continues, with this announcement from Citibank. This is important progress towards putting the customer first and financial inclusion in underserved communities, and also addresses increasing pressure from regulators. However, it will create a financial hole for banks - in 2020, banks reported to regulators that they collected $8.82 Billion in overdraft fees. To win in this environment, banks must take a hard look at internal IT and systems costs and identify inefficiencies to offset this lost income. Leading edge banks are also learning from DeFi start-ups how they can sell more profitable loans through better customer segmentation and data-driven targeting and ROI-driven marketing campaigns. To learn more about Princeton Partners Financial Services Group and how we help banks accelerate profitable growth, please visit us at: https://princetonpartnersfsg.com
New York, NY – Today, Citi announced plans to eliminate overdraft fees, returned item fees, and overdraft protection fees by this Summer.
