“Banks in the US are facing a continuous decline in revenue from customer-account fees on the back of changing regulatory environment and a shift in banking trends.
The big four – JPMorgan Chase & Co., Bank of America Corp, Citigroup Inc., Wells Fargo & Co. and other banks in the US are struggling to increase earnings and revenues from customer-account fees to pre-2008 financial crisis levels. Revenues from customer fees have been declining due to stricter regulations and changing trends in consumers’ banking habits that continue to be a major headwind.
Deposit-account fees have generally been a major component of a bank’s non-interest income till the financial crisis of 2008. According to data from Federal Deposit Insurance Corporation (FDIC), these fees made up 17% of banks' non-interest income on average from 2000 to 2009. In 2013, customer-account fees as a percentage of total non-interest income was only 14.1%.”
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