In a recent article, Bank of America has vowed to change many of its policies in hopes of taking its focus away from making money and placing it on customer relationships instead. As explained to CNBC on Tuesday morning by Chief Executive Officer Brian Moynihan, the bank also plans to change its consumer banking strategy due to changes in regulation.
Changes to Benefit Customers
Moynihan says that a lot of changes will take place to abide by new regulations placed on banks, but he also explained these changes will greatly benefit customers. Here are just a few of the adjustments he discussed with CNBC:
- No more penalty fees: Instead of charging penalty fees, BofA will begin charging monthly fees for bank accounts.
- Customers given payment choices: In addition, starting in December, customers will be given choices on how to pay for their banking services. They will also be rewarded for using certain products or bringing in more money.
While the CEO states customer relationships will be the company’s biggest focus, he admitted the adjustments will bring in additional revenue by taking fees away from a small group of customers and instead spreading them across the board to everyone.
Checking Structure to Change
In addition to making adjustments in payment and penalties, BofA will change its checking structure. Moynihan said the changes will take place over the next 12 months and will affect a customer’s checking account by requiring a minimum account balance, the use of credit cards a specified number of times per month and transactions to be conducted electronically.
Some experts believe taking this route will undoubtedly run customers away who were used to–or needed–free checking. However, Moynihan says he’s not concerned about losing customers and in fact feels the system will improve bank-customer relations.
Do you think the actions taken by Bank of America will in fact deepen relationships with customers, or will the extra fees and requirements run them away?