Those that Enhance their Lifestyle and Offer Perceived Value

Market Rates Insight‘s new “Integrated Study on Service Fees‘” is the first of its kind on consumer attitudes toward bank fees. The findings show that while consumers are less willing to pay more for traditional banking services, such as checking fees, they  are willing to pay more for a new category of “Lifestyle Financial Services,” with a higher perceived value. The table above shows the services surveyed and the likelihood of consumers to pay for those services.

Survey Findings:

  • 70% are willing to use and pay for financial services that enhance their lives.
  • Availability of these services is becoming a deciding factor in selecting a bank.
  • Credit union members are slightly more likely (68.7%) to use lifestyle financial services than bank customers (66.3%)
  • Identity theft services ranked highest among those services desired (82.5%) at an average monthly cost of $4.07

Consumers are looking to their banks for provide convenience and relief, and don’t want to feel they are being gouged them with additional fees on services they feel should be offered for free.

But they are also looking to their financial institutions for help, and those institutions that are willing to step forward with services that consumers want have an opportunity to earn more  revenue and gain the loyalty. This is good news for banks, which have seen overall revenues from service fees on deposit accounts fall from $39.2 billion in December 2007 to $34.1 billion in December 2011, a decline of 13%.