Charging for use of tellers studied by Buffalo banks
Business First of Buffalo - by Tom Hartley Business First
Two Buffalo banks are studying an industry trend that started last year after First Chicago Corp. began charging customers for using tellers.
Spokesmen at Marine Midland Bank and M&T Bank said their banks have made no decisions about whether to join the growing number of institutions that have introduced new accounts with similar fees.
A third bank, Cleveland-based KeyCorp, which has a district banking office in Buffalo and extensive operations in Western New York, already has launched its own incentive.
KeyCorp, parent of KeyBank, pays customers up to $1 a month on one account to deposit checks by ATM.
Despite the outcry last year when First Chicago announced its $3 per teller transaction levy, banks across the country have introduced their own versions. The aim is to push customers toward telephones, automated teller machines, video kiosks and home banking.
According to American Banker, a trade newspaper, examples of how banks are using different incentives in trying to break customers of the habit of using branches are popping up everywhere:
• Banc One Corp. recently started charging a $2 per-transaction teller fee on its customers in Arizona and San Antonio, Texas, to test the idea for possible use in all its banks.
• First Bank System Inc. in May unveiled an account that gives customers $3.50 each month if they don't use tellers.
• Comerica Inc. in April introduced an account to Michigan customers that completely prohibits the use of branches.
Industry observers say big banks are committed to changing the nature of traditional branches from deposit-taking and withdrawal stations to offices that sell a variety of investment products to upper-income customers.
At the same time, banks want their customers with lower balances to stop using branches for small teller transactions.
"Transactions through ATMs are less costly to process than in-person teller transactions so it benefits banks. But electronic transactions are more convenient for customers and that is what we are emphasizing," said Nancy Smith, KeyBank senior vice president and Buffalo district customer service manager.
"The customer can choose where and what kind of transaction is most convenient for them. With electronic banking, they have 24-hour capability vs. a branch office's set schedule of operation in days and hours," she said.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
