Some 50% of US banks have struggled to grow in terms of current accounts since the 2011 Durbin Amendment, according to a report.
The report, based on an Aite Group survey of 20 executives from banks that have over $10bn assets, said that 30% executives claimed that growth in numbers of current accounts is "staying at the same level", and 20% claim that it is decreasing. 50% reported increasing growth in current accounts.
The report’s author and senior retail banking analyst at Aite, Madeline Aufseeser, attributed the decline in perceived growth to a decrease in large banks offering free current accounts.
She said: "Banks should not lose sight of the trade-offs on current account price elasticity and minimum balance requirements.
"Customers could make a run for the door if increases become overly aggressive."
The report said that since the Durbin Amendment brought swipe fee caps in, banks have had to look elsewhere to make up the lost revenue.
Aite’s survey of banking executives also revealed that nearly two thirds, 60%, of executives believed that fraud prevention costs would rise during the rest of 2013 and 2014.
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