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JPM is ready to write the final chapter of free banking, but what comes next? When a king feels threatened and restricted, it leads to confusion and repercussions for his subjects. JPMorgan Chase, the country’s largest lender, is currently dealing with a comparable power struggle. The news: Marianne Lake, CEO of Consumer and Community Banking at … Continue reading "The end of free banking? " The post The end of free banking?  appeared first on Tearsheet.

Marianne Lake, the head of Chase Bank, issued a warning to the bank’s 86 million customers: prepare to start paying for services that are currently free. A new The Wall Street Journal story argues that JPMorganChase is making banking more expensive in response to new regulations. “The changes will be broad, sweeping and significant,” said Lake. “The people who will be most impacted are the ones who can least afford to be, and access to credit will be harder to get.” Following the 2010 post-financial crisis regulatory overhaul, banks threatened to impose fees on debit cards due to new caps on card charges. However, consumer backlash largely prevented these fees from being implemented. The new financial regulations from agencies such as the Consumer Financial Protection Bureau (CFPB) include an $8 cap on credit-card late payment fees and a $3 cap on overdraft fees. There are also plans to limit debit-card fees and charges to software companies like Venmo and CashApp. Moreover, new bank capital rules would require banks to hold more reserves against mortgages and credit-card loans, potentially making lending more difficult. Lake, who has a long tenure at JPMorgan Chase and is a potential successor to CEO Jamie Dimon, has seen the impact of past regulations on banking services. “It is not practical for many of the services to be free if we won’t be able to draw from those profit pools,” she explained. In response to the proposed regulations, banks have launched numerous appeals and lawsuits, many filed in the Northern District of Texas. The CFPB's rule capping credit card late fees, passed in March, is currently pending appeal due to a lawsuit by a coalition of bank industry groups. The other problem is that this could differentially affect small versus big banks. “Big banks can make up for a dent in consumer banking revenues with profit from their wealth management and investment banking arms. Smaller and regional banks will struggle to make up for that," said Dan Goerlich, a consulting partner at PricewaterhouseCoopers. The impending regulations could adversely affect the banking landscape, showing the unintended consequences of banking regulation. My two papers - link in comments - give examples of such unintended consequences using historical variation in policy. https://lnkd.in/e9s7vfcZ

Check out our latest publication in The Financial Brand where we explore the ongoing battle for deposits in the banking industry. To achieve long-term success, promotional specials need to be part of a well-orchestrated system that empowers frontline staff and includes systematic approaches to negotiations and retention offers. Properly structured teaser offers can be a huge contributor to deposit growth. If you're interested in learning more about community banking, deposits, pricing strategies, and banking solutions, don't miss this insightful read! #communitybanking #deposits #pricingstrategy #bankingsolutions

In response to potential regulation that aims to cap overdraft and late fees, Marianne Lake, the CEO of Consumer & Community Banking at Chase, warns that the bank will react by starting to charge its customers for checking accounts. This is just another example of how broken the US banking system is. Instead of adjusting to new market conditions, and developing new and innovative products - did someone say AI? - that will generate additional revenue for the bank, Chase is choosing to impose fees on the most basic banking product of all. Given its size, Chase may be able to get away with it. But what about smaller banks? At Cache, we're offering banks a different route. By integrating our fully-automated cash management solution into their banking apps, banks can offer a true value added product to their customers, benefiting both banks' bottom line and consumers. Instead of playing a zero-sum game with their customers, banks can offer a product that benefits all.

I am curious to hear what you value most in a bank or banker! Do you prioritize customer service, low fees, digital tools, or something else? Share your thoughts and experiences on what makes a banking relationship truly effective and satisfying for you. #CustomerService #Relationships #Banker #Banking #FDIC #Flagstar #Deposits #Wires #ACHPayments #CashManagement #OnlineBanking #MobileBanking #Financing #FraudPrevention #Security #Flagstar #WorkingCapital #EquipmentFinancing

#CFPB Rule on Card Late Fees May Have Unintended Impact on #Banking #Innovation #financialservices #fintech #digitaltransformation https://lnkd.in/exVJ2TZk

FedNow, an instant payment system, was introduced to the payments industry by the Federal Reserve in 2023. Read part 2 of our Bankers as Buyers blog series to learn more about the importance of FIs adapting to these advancements as the banking industry continues to change. #paymentstech https://hubs.ly/Q02wy0DK0

Are Teaser Offers Worth the Trouble in Banking? Neil Stanley from The CorePoint ran another guest post for us. Last time he wrote for us, he talked about how — as he puts it — "no deposit tactic is 'bad' or 'good' in and of itself." So what makes teasers worth the trouble (and the cost)? Executives can use four strategic questions to examine their approach: 1. Will it be perceived as fair and consistent by depositors and staff alike? 2. Is the pricing strategy easy to understand and execute for the frontline staff? 3. Is a tactic valuable to depositors and the institution? 4. Is the approach effective at attracting and retaining the desired deposit volumes at healthy margins?

As members crave digital and self-service banking methods, how can credit unions add a personal touch to such transactions? James White and Dan Catinella offer suggestions on how to bring back neighborly banking while still meeting member needs and expectations.https://https://lnkd.in/ebqSeEvi