SAN ANSELMO, Calif. (7/24/12)--With the consumer backlash over the debit fees that big banks tried to charge last fall, it may come as a surprise that some consumers say they would pay a fee for certain "lifestyle" services of value, according to a new study.
More than 82% of consumers surveyed indicated they would buy identity theft alert services from their credit union or bank at an average monthly fee of $4.07. More than 73% said they likely would buy credit score reporting services at an average of $3.39 a month.
Revenue from fees for traditional banking services are shrinking. For example, income from deposit service fees declined 13% between 2007 and 2012, said Dan Geller, executive vice president of Market Rates Insight.
Traditionally, financial institutions based decisions about setting service fees on the competitive landscape for similar services, said the firm in a press release. "However, consumers have demonstrated they are no longer interested in paying fees for services that have no perceived value." The study points to a new approach: assessing consumers' preferences on price sensitivity with the competitive landscape to reveal what consumers want, what they are willing to pay for, and where market opportunities lie.
The study encompassed seven lifestyle services: credit score services, identity theft protection, personalized couponing, prepaid reloadable cards, overdraft protection, personal money transfer and mobile remote deposit capture.