With the new regulatory changes, banks are scrambling to protect their overdraft revenue and to find replacement income for any of it they may lose. Consultants are offering a variety of ideas-including resurrecting regular service charges-but most share a common assumption: Many frequent overdraft customers will be unprofitable without these fees.

Before changing products and pricing, however, bankers would be wise to make sure they understand the true profitability of these customers. There will also be an opportunity to grab market share when competitors, especially the big banks, abandon free checking.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.