A byproduct of changes to Regulation E is the future of the checking account. Will the industry abandon free checking and return to the more traditional banking practices of charging account maintenance fees? While the full impact remains to be seen, customers are sharing their views on a fee-based world.
According to a survey administered by MoneyRates.com, 49% of respondents said “avoiding monthly maintenance fees” was the most important factor in choosing a checking account. Responding to a recent New York Times article, “Would You Pay for a Checking Account?,” customers state “No, I won’t pay for a checking account” and “should [my bank] try charging me I’ll shop around until I find the last bank offering free checking.” Banks therefore find themselves in a delicate situation with huge implications. So… what now? Read More »
Over the December holidays, I was visiting family in India, and despite everything you read about rapid economic development and the expanding middle class, the poverty so many people experience there is still striking. However, the poverty I saw this time looked very different than what I’ve seen in previous trips. People still live in flimsy shacks, but now they have televisions in those shacks. In the big cities, mobile phones are everywhere. In the past, large populations of the “unbankable” seemed completely out of the reach of traditionally structured financial institutions. These days, in countries like India, large bands of the population can be served through channels that were never an option before, like the mobile phone. 