Heitmeyer Consulting’s Post

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

Hey everyone! Check out this article discussing the recent issues faced by millions of HSBC, Virgin Money, Lloyds Bank, Barclays, and Nationwide customers unable to access their accounts. The impact of banking system outages on customers is a serious matter that needs to be addressed promptly. Let's discuss how financial institutions can improve their systems to prevent such inconveniences in the future. #banking #customerexperience #financialservices https://ift.tt/AGoEpyP

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.

In the hyper-competetive deposit market where FIs are fiercely protecting and trying to attract new customers, I appreciate US Bank's focus on reshaping the culture to focus on meaningful engagement. Encouraging employees to connect with and listen to customers (and not focus on set $$ goals and metrics) creates impactful personal experiences and builds loyalty U.S. Bank #deposits #customerexperiences #customerengagement #companyculture #listeningskills #banking #creditunions https://lnkd.in/eHeY-WC7

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.

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.

When it comes to banking, consumers need to not only their account balance but also how their banking product is stacked up. JP Morgan Chase is looking to raise the cost of certain banking products for consumers. Which we have been seeing across the industry for some time. And one of my fears was that on the other side of the pandemic, that banking fees would increase with inflation as did everything else. JPM is set to charge customers for several now-free services, including checking accounts and wealth-management tools. The free shall now become a fee. The fee structure that we are watching shift in real-time isn’t the first time that this has happened. In 2010, after the post-financial crisis overhaul of bank regulations, lenders warned that they would levy fees on debit cards because of a cap on some card charges—but few ended up doing so because consumers threatened to move their business. For consumers, I would suggest that you not only track the fee structure for your checking and savings (or any other bank product), but also make sure that you’re hitting those requirements it takes to keep them low. Inflation has been hitting everything else, and I do expect it to hit bank products (fees, interest rates, etc) over the next couple of months. Another thing that I read that was interesting was this — new bank capital rules would make it harder for banks to lend by requiring them to hold more reserves against mortgages and credit-card loans. Banking is about to get even more interesting for those who are deemed affluent. What is your take on banking fees and how do you counterbalance them? #consumerspending #economy #personalfinance

According to Marianne Lake, CEO of JPMorgan Chase's consumer and community banking division, the bank has set a lofty target of obtaining 15% of all consumer deposits in the nation. According to the most recent data available, as of June 2023, the bank has an 11.3% share of retail deposits in the United States. Additionally, the lender hopes to offer credit cards that make up 20% of all purchases made in the country, up from the existing 17%. For more information, visit us at - https://buff.ly/3jLzr1Q Follow us now & stay updated. #worldeconomicmagazine #internationalnews #news #businessnews #globalmarketnews #updates #latestnews #globalupdate #internationalheadlines #globalnewshighlights #globalnewsupdate

The future of #banking is online banking. The same goes with #retail #highereducation #downtowns #everythingelse. The good thing is #haircuts and #swimmingpools are here to stay :) Bank of America, Wells Fargo, & Chase shut branches as 79 banks in US close – companies ‘gamble’ while customers suffer https://lnkd.in/gdePYD4e

J.P. Morgan Warns Customers: Prepare to Pay for Checking Accounts! like it was free. ... Chase's head warns that if Washington enacts new rules to cap overdraft and late fees, everyday banking will become significantly more expensive for all Americans. Chase plans to pass on the costs of higher regulation, charging customers for services currently free, including checking accounts and wealth-management tools. Industry peers are expected to follow suit. Interesting timing for fintechs offering checking accounts and community banks and credit unions that have revamped their digital offerings! https://lnkd.in/eXk7GAZ2 Efi Pylarinou Marcel van Oost Jason Mikula Bryan Clagett Ron Shevlin