Personal Finance

Online Banking Fees Would Turn Customers Off

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Online Banking Fees Would Turn Customers OffOnline banking is one of the most popular services financial institutions offer, as 79 percent of account holders use these features at least once a week, according to a new poll from Mintel Comperemedia. However, roughly the same proportion would stop doing so if their bank were to start charging them for the privilege.

“Most consumers would be loathe to pay for an online bill pay service, simply because there are other services that are offered free of charge,” says Susan Wolfe, VP of financial services at Mintel Comperemedia. “So if banks start charging for online bill pay, they run the risk that customers will use another payment mechanism or go to one of the free third party services.”

[Resource: Security Risks of Mobile Banking]

The majority of the scant few who would be willing to pay for online banking services – 7 percent of those polled – said they would be unwilling to spend more than $5 a month, the report found. Just 5 percent said they would pay up to $10, and 2 percent would pay $25 or more.

[Related: Your Smarter Smartphone]

Many major banks have found that their online banking applications for smartphones are particularly popular, with millions of downloads and hundreds of thousands of regular users. This is often the case even if consumers don’t necessarily feel the apps are particularly well-designed.

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