US Bancorp announced their near-term strategies as a result of the draft rules issued by the Fed on December 16th. The Midwest bank has indicated that new checking account fee schemes are coming, and if debit card rewards survive, they may be an evolving benefit.
The company, the fifth-largest U.S. bank by deposits, will start taking action by the middle of the year to offset the impact of the regulation, Davis said. Potential measures include changes to checking account pricing, reductions in debit awards and the charging of a debit card fee.
The unexpected deep cut to interchange fees is bringing out organizations like US Bancorp, who had intended to take a more wait and see approach to retail banking changes. But, when faced with such a tremendous cut to non-interest income, playing the waiting game won’t work and we would expect to see more announcements like this in the weeks to come.
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