WFC - Overdraft fees likely to come under pressure Jefferies analyst says

Photo by wdstock/iStock via Getty Images Overdraft fees and service charges re-emerge as an issue after Ally Financial's (ALLY) recently announced that it will eliminate overdraft fees. They've long been an agenda item for the Consumer Financial Protection Bureau, points out Jefferies analyst Ken Usdin, who takes a look at how much revenue banks get from such fees. For Ally, the fees were only $5M in 2020, he said. In April, PNC introduced a new digital product called "Low Cash Mode" that it expects to eliminate $125M-$150M in annual overdraft fees, an impact it incorporated into PNC's 2021 guidance, Usdin said. "We see steps like these as a combination of numerous factors, including doing right by the customer, evening-up offerings with digital-only competition, and marketing to attract/retain accounts," he wrote in a June 3 note to clients. Of the banks in Jefferies' coverage, Regions Financial (RF) tops the list with

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Overdraft fees likely to come under pressure, Jefferies analyst says