Checking Profitability? Created by m.moebs on 12/11/2022 2:17:27 PM
Less than 25% of checking accounts make a profit.
This report gives you insight into the complete profit structure of what the world calls, Transaction Accounts.
Your comments and views positive, negative and extraordinary are welcomed.
Happy Holidays, Mike
“The real challenge for depository C-Level management is not growth in assets or loans but finding profitability in T-Accts – the key to getting deposits – which fund assets and influence making of loans.”
Lake Forest IL (December 11, 2022) Only 23% of the 8,603 banks, credit unions, thrifts, and fintechs who offer T-Accts make money on them. This is the result of the Functional Cost Analysis (FCA) of Moebs $ervices, who took over the FCA from the Federal Reserve in 2003.
In 2019, only 6% of depositories had profitable T-Accts.
“Regulators, class-action attorneys, and consumer groups who target financial institutions because “that’s where the money’s at,” might want to rethink moves against T-Accts, because checking is the key to financial services relationships, which brings in the deposits that fund loans,” says Moebs. “If pushed too hard, depositories may switch to a pay-as-you-go T-Acct and not authorize debit card purchases, or put multi-day holds on direct deposits or limit the amount of the deposit which can be used for several days.” READ FULL ARTICLE