Fee Fairness vs Fee Frequency

Fee fairness vs. fee frequency

Just because a fee is infrequent doesn’t mean it escapes customers’ notice.

There’s somewhat of a disconnect between fees respondents reported paying frequently and those they labeled unfair. For example, mobile banking and teller service fees rank low in frequency while they rank high among fees customers consider unfair, while more common overdraft fees rank better in their fairness perception.

An example: 74% of customers said they’d never paid a mobile banking fee. Yet 69% of customers reported “hating” paying mobile banking fees. Again, this suggests customers are less inclined to dislike fees caused by their own behavior compared to fees charged by the bank without seeming cause.

The surprising nuance in customers’ distaste for fees — with respondents more accepting of fees they could control, ones they felt were “fairer” — points to the benefit of promoting the value that customers receive in exchange for the fees they pay. That effort could potentially result in higher levels of trust and a more loyal, profitable customer base.

74%

never paid a mobile banking fee. Yet,

69%

of customers reported hating paying for mobile banking fees.

"Banks should want people to use mobile banking. It costs the bank less, so why would they charge for it?"

Surveyed Bank Consumer

Customers favor eliminating fees they've recently paid.

In contrast to their views of fee fairness, when respondents were asked about a fee they would eliminate, they were most likely to choose those they had recently paid despite their perceptions of whether the fees were fair or not. There seems to be a dislocation between fees respondents dislike in theory and those they dislike in practice.

Which of these fees, if any, would you like to see eliminated at your bank?

Monthly service fees connected to an account

18%

Overdraft fees

17%

ATM usage fees

16%

Person-to-person transfer fee

6%

Paper statement fees

6%

Teller service fees

5%

Late payment fees

5%

Mobile banking fees

4%

Cashier’s check/money order

4%

Foreign transaction fees

4%

Wire transfer fees

3%

None of these

12%

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

% of customers that have paid fees in the last year

Monthly service fees

33%

Overdraft fees

23%

ATM fees

38%

The most common fees are those customers most favor eliminating.

Which of these fees, if any, of the following would you like to see eliminated at your bank?

Customers who paid an overdraft fee within the last year

Overdraft fees

29%

ATM usage fees

15%

Monthly service fees connected to an account

13%

Person-to-person transfer fee

8%

Late payment fees

7%

Mobile banking fees

6%

Wire transfer fees

5%

Paper statement fees

4%

Teller service fees

3%

Foreign transaction fees

3%

Cashier’s check/ money order

2%

None of these

5%

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

Customers who paid a monthly service fee within the last year

Monthly service fees connected to an account

23%

Overdraft fees

17%

ATM usage fees

16%

Mobile banking fees

7%

Person-to-person transfer fee

6%

Late payment fees

6%

Paper statement fees

5%

Wire transfer fees

4%

Foreign transaction fees

3%

Teller service fees

3%

Cashier’s check/ money order

2%

None of these

6%

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

Next Section:

Communicating fees