"Insight Report: Will People Pay for Fee-based Banking?" now available at Fast Market Research

From: Fast Market Research, Inc.
Published: Tue Jan 13 2015

The report provides insights into the fee-based income of banks:

* It offers a global snapshot of current market dynamics of fee- and commission-based income for banks, and the future outlook.
* It explores the question of whether customers are paying for current/checking accounts.
* It provides insights into the impact of regulations on banks' ability to generate fee income.
* It captures trends into banks' revenue structures in key markets.
* It explores the importance of overdrafts and transaction banking as drivers of banking revenue.

Report Highlights

* Despite a decline in overdraft revenue in major economies such as the US and the UK since 2009, overdraft continues to remain a major source of fee-based revenue for banks. Banks have adopted several strategies to maintain income from overdrafts. This includes increasing fees on using overdraft facilities and increased focus on marketing overdrafts as part of current account offering.
* Consumers have become increasingly value-driven and are looking for benefits beyond standard products and services. This has led to customers being less willing to pay for services which they perceive as basic. However, consumers have demonstrated a willingness to pay for value-add services which has provided banks with new opportunities to earn additional fees and commissions from innovative products and services.
* Diversification in terms of products and services is expected, as banks increase their focus on non-interest revenue to cushion pressure on interest revenue and subsequently their total income. The increased use of large scale data analytics is likely to help banks identify emerging consumer needs and new product opportunities to serve the market demand.
* Following the latest global financial crisis, banks have cut down on their fee-free offerings, including current accounts and the associated services. This trend has been driven by changing regulatory landscape with regards to interchange fees, product fee restrictions and various consumer protection laws, all leading to increasing pressure on the profit margins of financial institutions.
* As profits from investment banking continue to remain under pressure following 2009, transaction banking has gained prominence as a key driver of revenue. Income from transactions accounts for around 25% of total revenue generated by banks across the world and provides up to 60% returns on equity - making it a key driver of non-interest income.

Full Report Details at
- http://www.fastmr.com/prod/943112_insight_report_will_people_pay_for_feebased.aspx?afid=301

Report Scope

* This report covers trends in bank revenue in key markets since the subprime crisis.
* It covers country- and bank-level information on banks' interest and non-interest income.
* It captures trends, challenges and drivers behind the dynamics of fee-based income for banks.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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