 |  |  |
Industry News Upscale earners more likely to opt in to overdraft protection 2010-06-07 New FDIC regulations have caused many banks to reconsider their overdraft policies. They may be interested to know a recent Nielsen survey shows higher-earning customers are more likely to want overdraft protections - giving financial institutions insight on how to prevent customer attrition. Overall, the survey found that 26 percent of customers said they would choose to opt-in, 22 percent said they would not and 39 percent were undecided. Others had non-qualifying accounts. The survey found that those who wanted overdraft protection most were what Nielsen called white-collar "upscale earners." The main reasons they cited were a wish to be covered in case of an emergency and avoiding check-out embarrassment. Because of the new FDIC rules, many banks have changed, or even dropped their overdraft protections. According to Nielsen's study, dropping overdraft protection services makes those institutions less appealing to upscale earners, thereby increasing the risk of customer attrition in this important demographic. Higher-earning customers are a bank's biggest asset. According to Consumer Reports, a recent study by banking consultant Celent found that a bank's biggest revenue producers are customers who keep checking account balances higher than $3,000, because of the interest income they generate. 
Two More Words on Client Retention Recent Customer Analytics News Under 50 investors offer lucrative opportunity to financial services firms
|
 |
 |
 |
 |
 |
 |
Contact Us | FAQ | Site Map | PNT Privacy Pledge | © 2008 PNT Marketing Services