Market Rates Insight TrendSpotter Analysis Reveals Banks Ignoring the Data and Abandoning Potential Fee Revenue

New Analysis Using MRI’s TrendSpotter Report Shows that Reducing Fees Has Little or No Impact on Deposit Growth.

Market Rates Insight

San Anselmo, CA, USA — According to a recent analysis published by CenterState Bank, banks are reducing fees on deposit accounts despite the fact that fees seem to have little or no impact on the current increase in deposit balances. The analysis was developed using TrendSpotter, a new research tool that tracks accumulated fee trends for banks and credit unions nationwide produced by Market Rates Insight, Inc., the leader in financial services pricing intelligence for deposits, personal loans, mortgages, and fees.

According to the TrendSpotter analysis, service charges have been declining for banks of every size over the last quarter – deposit fees averaged $8.42 per month in December and declined to $7.92 the end of first quarter. At the same time, balances required to open accounts have dropped by 15 percent since December, and the average balance to waive fees has dropped 6.6 percent. The decline in deposit fees seems counterintuitive in a market climate where deposit balances are increasing as a result of behavioral economics rather than fee elasticity.

“We have looked at this all different ways and find this borderline irrational. Our only conclusion is that banks are not looking at the data,” wrote Chris Nichols, Chief Technology Officer of CenterState Bank and author of the analysis. “As long as you are not drastic, you can raise fees, lower fees or leave fees the same and you are still going to get more deposits. If you are not, it is a marketing/value problem, not a fee problem.”

As Nichols notes, that fee elasticity is negative in most markets, and even banks that have not lowered fees on deposit products are still increasing deposit balances. Banks that did not raise deposit fees for the quarter saw an increase of 2.3 percent, while banks that did raise fees increased deposits 2.1 percent, indicating that consumers are clearly not fee sensitive.

Nichols’ conclusion is that this is the perfect market climate for banks and credit unions to consider raising fees without risk. Banks that are lowering fees in order to attract new customers and increase deposit balances, and are ignoring the market data and abandoning possible revenue at a time when banks and credit unions are facing near record-low net interest margins.

About TrendSpotter
TrendSpotter is a unique tool that gives bank and credit union executives an understanding of accumulated fee trends in the marketplace. Data is extracted from Market Rates Insight’s FeeBuilder, the first database of retail deposit fees that tracks overdraft, non-sufficient funds, monthly service charges, ATM fees, wire transfer, on checking, money market, savings, certificate of deposit, and more. TrendSpotter extracts trends from the FeeBuilder database and provides a picture of fee pricing and penalties for banking products nationwide. User can overlay their own fee pricing to create a trend line that shows how the competition affects revenue, attrition, and volume for their own fee-based products.

TrendSpotter is issued quarterly on an annual subscription basis. For more information, visit http://www.marketratesinsight.com/news/MRI_TrendSpotter.aspx.

About Market Rates Insight
For over 30 years, Market Rates Insight has helped banking executives make better informed pricing decisions. The company serves banks and credit unions nationally with competitive information on deposits, consumer loans, mortgages, and fees. Market Rates Insight provides the most granular historical and refresh pricing data in the industry, helping financial decision makers plan and prepare for likely changes in rates and products. The company’s cloud-based system provides timely and precise competitive data supported by usable graphs and charts.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com

Market Rates Insight Introduces TrendSpotter, Providing Banks and Credit Unions with Competitive Fee Trend Data for Benchmarking

TrendSpotter Reports on National Trends for Checking, Savings, Money Market Accounts, and CDs on ATM, OD, NSF, Wire Transfer, and Monthly Service Charge.

Market Rates Insight

San Anselmo, CA, USA (January 17, 2016) — Market Rates Insight, Inc. (http://www.marketratesinsight.com), the leader in financial services pricing intelligence for deposits, personal loans, mortgages, and fees, today announced the release of TrendSpotter, a new research tool that captures quarterly retail fee trends for banks and credit unions nationwide.

TrendSpotter provides financial institutions with key intelligence by monitoring trends for retail deposit fees, features, and requirements in the marketplace. When combined with internal key performance indicators, this historical fee data enables banks and credit unions to monitor fee trends and their impact on sales volume and revenue.

TrendSpotter can provide valuable insight, and information to better predict the impact of fee changes. By using TrendSpotter for competitive benchmarking, financial institutions can overlay their own fee pricing to create a trend line that shows how the competition affects revenue, attrition, and volume for their own fee-based products. The tool provides an ability to configure a fee, feature, or requirement trend based on filters that allow the user to identify a specific institution by type or asset size. The tool’s flexibility provides the end user the ability to effectively track the competitive environment and impact of fee changes.

Samples of TrendSpotter data output include:

• ATM fees charged on foreign transactions (also includes waived and rebated fees)
• NSF/OD fees that can be filtered by market or size
• Minimum balance or combined balance requirements to waive monthly service charges
• Overdraft protection transfer fees

TrendSpotter is a unique tool that gives bank and credit union executives an understanding of retail deposit fee trends in the US marketplace. Data is extracted from Market Rates Insight’s FeeBuilder, the first database of live retail deposit fees on over 2,200 FIs that tracks live data on overdraft, non-sufficient funds, monthly service charges, ATM fees, wire transfer, on checking, money market, savings, and certificate of deposit.

“Fees continue to be an essential source of banking revenue, and TrendSpotter now gives bank executives the data they need to gain a true portrait of the competitive landscape for deposit fees,” said Rick Barham, founder and CEO of Market Rates Insight. “TrendSpotter not only tells you about specific competitors but gives you the bigger picture of market trends over time. Using TrendSpotter data, bankers can identify weaknesses in their pricing strategy and areas where they are overlooking potential fee revenues. There’s no other research tool like it on the market.”

TrendSpotter makes its observations at the national level, and is issued quarterly on an annual subscription basis. For more information, visit http://www.marketratesinsight.com.

About Market Rates Insight
For over 30 years, Market Rates Insight has helped banking executives make better informed pricing decisions. The company serves banks and credit unions nationally with competitive information on deposits, consumer loans, mortgages, and fees. Market Rates Insight provides the most granular historical and refresh pricing data in the industry, helping financial decision makers plan and prepare for likely changes in rates and products. The company’s cloud-based system provides timely and precise competitive data supported by usable graphs and charts.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Photos available upon request

Contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com

Market Rates Insight Introduces Mobile Rate Move Alert to Give Bankers Competitive Interest Rate Data Anytime, Anywhere

Mobile Rate Move Alert Introduced in Response to Demand from Bankers in Anticipation for Federal Reserve’s Rate Increase This Month.

Market Rates Insight

San Anselmo, CA, USA (December 10, 2015) — Market Rates Insight, Inc., the leader in financial services pricing intelligence for deposits, personal loans, mortgages, and fees, has released Mobile Rate Move Alert, a new deposit interest rate tracking product designed to keep financial executives current with changes in competitive interest rates. Mobile Rate Move Alert delivers competitive rate change data immediately to give banking and credit union executives the latest rates for target institutions and regions delivered to their smartphone, tablet, or laptop.

The financial industry has been waiting for the Federal Reserve to raise interest rates to revitalize deposit rate products such as savings accounts, money market accounts, and CDs. When rates do rise, experts predict that consumers will immediately begin shopping for better returns for their savings. This will leave banks and credit unions competing for new money, jockeying to offer the most competitive rates for interest earnings.

To prepare for pending interest rate increases, Market Rates Insight has developed a mobile alert tool that gives subscribers an email alert with the latest interest rate changes from preselected competitors. With Mobile Rate Move Alert, financial executives can keep watch on competing institutions and products, and adjust their own rates as needed to stay ahead of rates in their market area.

“With the ongoing economic recovery, it’s been a long time since banks have had to compete on interest rates. Consumers have been waiting for rates to improve before investing their savings, and when the Fed does increase interest rates, there is a going to be a flood of rate shoppers looking for new financial products,” said Rick Barham, founder and CEO of Market Rates Insight. “Our Mobile Rate Move Alert product is designed to help our bank and credit union customers stay ahead of the competition and track rate changes as they happen.”

Mobile Rate Move Alert allows subscribers to select specify financial institutions and interest products. Products to be monitored can be selected by company, product type, region, terms, tiers, and other criteria. When a rate changes, subscribers receive a message sent directly to their mobile device with details about the competitor, the product, and the rate change.

Mobile Rate Move Alert is just the latest self-service research tool included in Market Rates Insight’s MyRI suite. MyRI gives users a variety of web-driven research tools that track the latest in deposits, rates, and fees. MyRI provides access to bank rate and fee data nationwide, allowing financial executives to assess competitive rates, understand pricing trends, and conduct market research to help them make more informed product and marketing decisions.

For more information, visit http://www.marketratesinsight.com.

About Market Rates Insight
For over 30 years, Market Rates Insight has helped banking executives make better informed pricing decisions. The company serves banks and credit unions nationally with competitive information on deposits, consumer loans, mortgages, and fees. Market Rates Insight provides the most granular historical and refresh pricing data in the industry, helping financial decision makers plan and prepare for likely changes in rates and products. The company’s cloud-based system provides timely and precise competitive data supported by usable graphs and charts.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Photos available upon request

Contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
http://www.marketratesinsight.com

Market Rates Insight Introduces FeeBuilder, an Interactive Fees Database to Help Financial Institutions Optimize Fee Revenue

New National Fee Tracking Database Gives Banks and Credit Unions Live Competitive Information on Retail Deposit Fees.

Market Rates Insight

San Anselmo, CA, USA — Market Rates Insight, Inc., the leader in financial services pricing intelligence for deposits, personal loans, mortgages, and fees, today announced the launch of FeeBuilder™, the first live retail deposit fees database for financial institutions (FIs). FeeBuilder is a subscription-based, interactive, decision-support fees database that helps financial institutions (FIs) make up-to-the-moment observations about retail FI deposit fees nationwide. The latest FDIC data shows that consumer overdraft charges, periodic maintenance charges, and ATM fees alone make up more than 50 percent of service charges on deposit accounts. FeeBuilder provides a competitive benchmark for FIs to optimize competitive deposit account fees instantly, and to answer off-cycle fee questions.

FeeBuilder was designed to help FI decision-making for competitive deposit fees. It provides instant peer-to-peer analyses at the national, state, and local level with comprehensive competitive fee data on checking, savings, money market accounts, and certificates of deposit. FeeBuilder covers overdraft, non-sufficient funds (NSF), monthly service fees, ATM fees, and wire transfer. Users can segment by product, geographic market, and by FI. FeeBuilder includes access to deposit fees at 95 percent of banks with over $10 billion in assets, 98 percent of credit unions with more than $1 billion, and all significant direct banks. With 1,700 FIs and growing, this database is essential for FIs that depend on deposit fee revenue, and it is the first and only fees tracking service to offer daily updates for immediate decision support.

With interest rates still at record lows, FIs are increasingly dependent on deposit fees for revenue. In fact, overdraft fees have become a primary source of revenue, accounting for nearly $32 billion in 2013. Very soon, the Consumer Financial Protection Bureau (CFPB) will issue new overdraft guidelines that will affect some fee revenue.

“FI margin squeeze is real. Banks and credit unions are facing mounting market and regulatory pressures at a time when the velocity of change and demands for transparency are overwhelming,” said Rick Barham, founder and CEO of Market Rates Insight. “It’s more important than ever to be able to have a fast and accurate fees benchmark. Aligning your deposit fees with live market data not only helps you keep pace with the competition, but it also means you aren’t leaving potential revenue on the table. FeeBuilder helps our clients stay one step ahead, and it answers their most pressing questions.”

FeeBuilder is essential for executives who need to set deposit fees or develop new financial products. FeeBuilder can be applied in a number of ways:

1. FeeBuilder answers off-cycle questions about fees without the usual delay of waiting for a custom fee study.
2. FeeBuilder helps FIs locate alternative revenue sources to Overdraft.
3. FeeBuilder provides a competitive benchmark for current and new products.
4. FeeBuilder reveals market trends by geography, product category, and institution.
5. FeeBuilder shows where the CFPB is exerting influence on OD with live market data.
6. FeeBuilder also is valuable for business development, opening new markets, and M&A strategies.

FeeBuilder is delivered as a quarterly report and on-demand. The data is structured as a comprehensive spreadsheet that provides snapshots that can be manipulated for inclusion in reports, projections, and presentations.

Included with the FeeBuilder subscription is a quarterly bonus look at the data via TrendSpotter, showing fee changes highlighted by product category or institution. TrendSpotter quickly reveals how the industry is responding to consumer and regulatory pressure regarding fees, and it shows accumulated changes by fee at the national level.

For more information, visit http://www.marketratesinsight.com.

About Market Rates Insight
For over 30 years, Market Rates Insight has helped banking executives make better informed pricing decisions. The company serves banks and credit unions nationally with competitive information on deposits, consumer loans, mortgages, and fees. Market Rates Insight provides the most granular historical and refresh pricing data in the industry, helping financial decision makers plan and prepare for likely changes in rates and products. The company’s cloud-based system provides timely and precise competitive data supported by usable graphs and charts.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Artwork available upon request.

Media Contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com
http://www.marketratesinsight.com

Market Rates Insight Report Analyzes How Bank Deposit Rates Are Likely to Rise in 2014

New Analytical Report, “Likely Scenarios of Rising Deposit Rates in 2014 and Beyond,” Reveals Deposit Rate Trends Expected for CDs, Money Market, and Savings Accounts.

Market Rates Insight

San Anselmo, CA, USA (January 11, 2014) — How will rising deposit rates affect CD rates and savings and checking interest rates in the coming year? That’s the question answered in the latest research report from Market Rates Insight, Inc. (http://www.marketratesinsight.com), the leader in financial services intelligence for deposits, personal loans, mortgages, and fees. The new report, “Likely Scenarios of Rising Deposit Rates in 2014 and Beyond,” provides an analysis of what deposit rates for CDs, savings accounts, money market, and checking accounts are likely to look like in the 2014.

This latest report reveals how deposit rates are likely to trend based on historical data from the last rising rate environment between July 2003 and July 2007. The predictive report can be invaluable to bank marketing executives and senior staff at banks and credit unions who need to plan their rate increases and budget for future interest expenses. Market Rates Insight is the only research company to have more than 25 years of cumulative bank and credit union rate data, giving the firm a more accurate portrait of cyclical market trends.

“As the economy continues to improve, there is no question that bank deposit rates will begin to rise,” said Dr. Dan Geller, Executive Vice President of Market Rates Insight and author of the study. “The real question is when will they rise and to what degree? No one has a crystal ball, but we do have historical data that accurately shows how deposit rates perform during the last rising economic cycle. Scrutinizing past performance can be a very reliable indicator of what lies ahead for deposit rates.”

Trends revealed in the report include:

– The impact of 3-month and 6-month LIBOR rates on deposit products.
– The average increase of deposit product rates on a month-to-month basis.
– The projected performance curve of term accounts and liquid accounts.
– The increase in interest expenses for banks and credit unions for consumer deposits.
– And much more.

The “Likely Scenarios of Rising Deposit Rates in 2014 and Beyond” report provides average rates in seven deposit-product categories: checking, savings, money markets, brief-term CDs (3 months or less), short-term CDs (3 months to 1 year), mid-term CDs (1 to 3 years), and long-term CDs (over 3 years). The report is available now for $995.

For more information, visit http://www.marketratesinsight.com/news/2014DepositTrends.html.

About Market Rates Insight
For more than two decades, Market Rates Insight (MRI) has been helping clients price with precision by providing banks, thrifts, credit unions, and other financial institutions with comprehensive market intelligence on deposits, loans, and fees. MRI’s products include web-enabled, customizable report programming, proprietary product research tools, searchable databases, market alerts, and online dashboards that aggregate key client data to provide real-time interactive views on how they rank against their specific competitors. MRI provides advanced toolsets for deposits, deposit surveys, mortgage and consumer loans, and loan surveys, fees and features pricing in addition to studies, new product alerts, benchmarking and market analyses to give subscribers the intelligence needed to strategically position products, optimize pricing and react to emerging trends.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Graphics available upon request

For additional information contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com

Market Rates Insight Releases Findings from its New Consumer Study: Growth and Revenue Potential from Emerging Financial Services

Market Rates Insight

New fee optimization study reveals perceived value of new financial services and how to optimize fees with service bundles to generate new revenue.

SAN ANSELMO, Calif. (May 30, 2013) — Market Rates Insight, Inc., a leader in financial services intelligence for deposits, personal loans, mortgages, and fees, has completed the analysis phase of its latest consumer research and fee optimization study, “Growth and Revenue Potential for Emerging Financial Services.” The study examines 13 emerging financial services and assesses consumer attitudes about the importance and value of each service, segmented by banks and credit unions as well as demographic groups. The study findings will be reviewed in a webinar to be hosted by Market Rates Insight on June 18.

This study is the only one of its kind to measure consumer attitudes about banking fees and services and was conducted nationwide to help banks and credit unions better understand consumers and identify new revenue sources from fee-based services and service bundles. Banks and credit unions are facing new challenges from non-banking competitors offering banking services, and they need to identify new ways to attract and keep customers. This study provides empirical data on the importance and value of emerging services to help financial institutions create service offerings that attract and retain customers while building revenue.

Some of the preliminary findings reveal that identity theft alerts (70.8%), credit score reporting (71.4%), payment protection services (64.6%), and same-day bill pay (58.7%) currently ranked with the highest consumer demand. Other services such as eldercare services, prepaid reloadable cards, and location-based coupons showed the greatest growth potential with consumers.

This study also reveals for the first time how consumers value certain combinations of services. Consumers typically value service bundles more than individual services, and will pay a premium for bundled services. The study reveals which combination of services command higher fees because of increased consumer demand.

“For the foreseeable future deposit rates will remain flat and loan demand will stay soft, so financial institutions will have to rely in fee revenues for income growth. But to convert services from ‘free to fee,’ banks and credit unions will have to identify new services that consumers want and are willing to pay for. Our new study shows banks and credit unions how to use service fees to expand profits and penetration with both existing and new customers.”

The “Growth and Revenue Potential lf Emerging Financial Services” study is being offered in both an Essential and Premium package. The Essential package includes copies of the complete 150-page study and a competitive survey of 10 financial institutions and their adoption of the 13 emerging financial services. The Premium package includes the survey and competitive data, as well as an optimization analysis of service bundles, an online optimization consultation, copies of the Emerging Trend Spotlight quarterly update, and access to trend analysis and service integration online seminars.

For more information about the study or the upcoming webinar, contact Market Rates Insight at info@marketratesinsight.com.

About Market Rates Insight
For more than two decades, Market Rates Insight (MRI) has been helping clients price with precision by providing banks, thrifts, credit unions, and other financial institutions with comprehensive market intelligence on deposits, loans, and fees. MRI’s products include web-enabled, customizable report programming, proprietary product research tools, searchable databases, market alerts, and online dashboards that aggregate key client data to provide real-time interactive views on how they rank against their specific competitors. MRI provides advanced toolsets for deposits uses deposit surveys, mortgage and consumer loans, and loan surveys, fees and features pricing in addition to studies, new product alerts, benchmarking and market analyses to give subscribers the intelligence needed to strategically position products, optimize pricing and react to emerging trends.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Photos available upon request

For additional information contact:
Tom Woolf
Market Rates Insight
(415) 259-5638
tom.woolf@marketratesinsight.com