Research and Markets (http://www.researchandmarkets.com/research/5m9rhh/insight_report) has announced the addition of the "Insight Report: Will People Pay for Fee-based Banking?" report to their offering.
The reliance of banks on fees and commissions increased following the latest financial crisis in both developed and emerging economies. Due to a weak demand for borrowing and low interest rates, banks have increased their focus on non-interest revenue. The proportion of fees and commission income in the total banking revenue however, varies according to country. The rising or decreasing proportion of fee income reflects the difference in consumers' preferences in different countries, the inherited pricing structure imposed by the banks and the country's economic cycle.
Although, consumers have strong preference for free basic banking services, evidence from different consumer surveys suggest that consumers are willing to pay for products that add value and convenience to basic banking services. Customers are willing to pay for interest-free emergency funds, automatic direct debits, increased grace periods on due payments, investment services and premium reward-associated accounts and cards.
Traditionally banks have generated their fees and commissions from overdrafts, unarranged overdraft fees, annual fees on accounts and cards, automatic teller machine (ATM) fees, interchange fees, loan processing, cross-border transactions, trade and capital market services and wealth and trust management services.
However, changing regulatory dynamics and the competitive landscape have forced banks to realign their product portfolio and pricing strategies to generate more fee-based income over the next five years. Banks have begun to increasingly focus on launching new products and services that provide alternative sources of fee income. This includes mobile payment solutions that allow convenient person-to-person (P2P) payments, international remittances and expedited payment services.
Key Topics Covered:
1 Executive Summary
2 Bank Revenues since the Financial Crisis
3 Interest Income vs. Non-interest Income
4 Do Consumers Pay for Current Accounts?
5 Is Overdraft Still the Main Profitability Driver for Banks?
6 Transaction Income as a Driver of the Banking Revenue
7 The Impact of Regulation on Fee-based Banking
7.1 Regulation in Regards to Overdrafts and Other Banking Products
7.2 Interchange and Merchant Fees
7.3 Card issuance
8 Appendix
For more information visit http://www.researchandmarkets.com/research/5m9rhh/insight_report
