Overdraft Prices Free Falling Created by m.moebs on 5/21/2023 7:41:34 AM
Overdraft prices drop drastically again!
When will your institution drop prices below $20 to be competitive?
Lowering OD prices makes more revenue – read the report below and learn how.
Your comments, questions, and thoughts wanted.
The OD Price is Half of What it Was 2 Years Ago
“Free falling in skydiving is not risky if you have a reliable parachute.”
Michael Moebs, Economist & Chair of Moebs $ervices, LLC (M$) a Private Financial Service Research Firm.
Lake Forest IL (May 21, 2023) M$ surveys show 40.2% of all depositories charge and 74.0% of all consumers pay $15 OD price per transaction or less as of April 1, 2023.
Moebs asks, “Why do many financial institutions fear lowering their OD price?”
Reasons appear revenue loss, penalty charging, and/or unsecured lending which is considered financially risky.
The Business of Overdrafting is Rapidly Changing
The British started checking more than 200 years ago with small businesses at the time of the American Revolution. This evolved in the late 19th century when both Americans and British expanded overdrafting to wealthy citizens. World War I brought checking accounts and overdrafts to all. Checking advanced globally to a transaction business after WWII with the Americans following about the time of the Vietnam war in the 1960’s with the introduction of “Free Checking.”
Note the strong connection of transaction accounts (T-Accts) to armed conflict and troop deployments. READ FULL ARTICLE