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The Future of Fee Based Banking Income - New Market Report Now Available

Fast Market Research recommends "The Future of Fee Based Banking Income" from Timetric, now available


Boston, MA -- (SBWIRE) -- 06/05/2012 -- This report examines the market for fee-based retail banking products and services in the US, UK and Europe. Fee-based income is the revenue that banks earn from sources such as monthly account fees, and fees for late credit card payments or unauthorised overdrafts. Retail and commercial banking makes a significant contribution towards the overall income of some of the world's biggest banks in comparison with investment banking activity, and the contribution of the former looks set to continue in 2012. The other main source of income earned by retail banks is from interest payments on products like personal loans and credit cards. Both supply and demand for these types of products are in decline. The number of credit cards in circulation fell by nearly one million in 2011 y-o-y due to reduced demand for the product on the behalf of consumers, and reduced supply due to the tighter lending criteria. The decline in unsecured lending will reduce the amount of interest income earned, and this is likely to lead to a continued increase in lending interest rates, regardless of the level of the UK base rate.

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Key Highlights

- Aiming to increase the amount of income from fee based products and services remains challenging from both a regulatory and market perspective
- There is a lack of willingness on behalf of consumers to pay additional fees either for cards or advice which they consider should be free
- The regulatory environment is becoming more restrictive, so banks will need to seek out new avenues of revenue
- Expect to see more outsourced income generation streams, but they will only succeed if they represent value for money to the consumer


- Legislation is squeezing bank retail margins just at a time when they need to maximise profitability. This report examines and discusses the current moves being taken by banks in response to dictats by regulators
- As is so often the case, what happens in the US tends to gravitate elsewhere so this market is examined in detail
- It is no longer just a providers market so the expectations of consumers across Europe are considered
- Bancassurance will make an increasing contribution to banking income and this is assessed

Reasons to Get this Report

- Understand the growing importance of generating fee-based income
- Move away from reliance on interest income as a main source of revenue
- Gain an in-depth understanding of how regulatory pressures will affect fee-based products
- Gauge consumer attitudes to fee-based products
- Measure the cost of compensation schemes

Companies Mentioned in this Report: Lloyds TSB, HSBC, RBS, Barclays, Metro Bank, Visa, Mastercard, JPMorgan Chase, Fifth Third Bank, Deutsche Bank, Credit Agricole

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