Banks have historically made money on overdraft fees, out-of-network ATM fees, fees for not maintaining a certain minimum balance and more; this fee structure has helped give banks a bad name; big tech companies and fintech startups have garnered a better reputation for upfront fees for a simple service and transparency around other fees; “It’s important to let consumers understand what you’re offering, what the fee structure is — and be abundantly clear about it — and then you can build trust,” said Jay Shah, CEO of Personal Capital to TearSheet; studies show that customers are not turned off by fees, but are annoyed when they hear of free checking then see ACH transaction fees or overdraft fees; banks need to begin to understand what their customers want and how much they are willing to pay for it in a clear way. Source.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.