Mobile Banking Likely to Cost Consumers
More Americans are turning to mobile banking because it is fast, convenient and free. You can manage your accounts directly from your smartphone, whether it be deposits or transfers.
What would happen if you suddenly had to pay for this service? Would you still us it? Sadly, that could be something to watch for in the future.
A Minneapolis branch of US Bank was the first bank to charge a fee for mobile banking in 2010. Other banks are now starting to follow suit. Regions Financial charges $5 to deposit money digitally, and another 50 cents to access it two days later. Next month, PNC plans to begin charging a monthly fee for its Virtual Wallet app, but the charge can be avoided with certain minimum balance requirements.
“This is just the beginning of the creative ways banks will try to compensate in a low-rate, low-growth environment. They have to look for alternative ways to improve their fee income stream,” said Todd Hagerman, senior research analyst at Sterne Agee in an interview with USA Today.
According to a recent report in American Banker, the developmental costs of a banking app ranges between $1 million and $5 million. Most banks will likely find a way to monetize this service and offset the cost of developing the app. But it seems banks have not decided what those fees will be.
If you are a mobile banking consumer, be diligent in reviewing your bill for new charges on your account. It could be a matter of time before charges start to appear.