This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Mobile Banking Fees: Coming To Your Bank?

Technology can make life easier, but it doesn't necessarily make it cheaper. For proof, look at the recent wave of mobile banking apps.

Nothing could be simpler than using your smartphone to manage your money. Today's mobile banking apps allow customers to transfer funds, receive account alerts and even deposit checks without ever stepping into a branch. However, some industry experts are saying that this convenient type of banking may soon come with a price tag.

Mobile banking fees already in place at some banks

According to a recent report in American Banker, it can cost banks from $1 million to $5 million to develop mobile apps. For bank executives looking at the bottom line, fees for mobile services may be an attractive way to recoup some of those costs.

Some institutions have already rolled out fees for their mobile banking features. Beginning in December 2013, PNC will charge a monthly fee for its Virtual Wallet app, although the charge can be avoided if customers meet minimum balance or other requirements. At Regions Bank, there is a fee for its Mobile Deposit service that ranges from 50 cents for two-day check processing to a minimum of $5 for immediate funds availability. U.S. Bank also charges 50 cents per deposited check.

However, not all banks have been so quick to charge for their mobile banking services. A review of some of the nation's major banks finds many still advertise free mobile banking for standard services, including:

Making money off mobile banking

While banks such as Regions and U.S. Bank are employing transaction fees for deposited checks, consumer costs for mobile banking could take many different forms. A recent NBC News report discusses how some institutions may be considering an annual flat fee that would allow consumers to make an unlimited number of mobile transactions.

Meanwhile, other banking experts argue there is no need to charge consumers fees for mobile banking. These observers say mobile features are poised to pay for themselves.

"You don't need to start charging fees in order to monetize mobile," Andres Wolberg-Stok, global mobile and tablet banking director for Citi Consumer Banking, told American Banker. "Our data shows customers who adopt mobile banking increase their balances on deposit, decrease their attrition and see their overall profitability rise very clearly. Compared over time to other customers who had identical profiles but did not go mobile when they did, they become more profitable."

For now, consumers who are interested in mobile banking should be aware of the potential costs that could come with the convenience. In addition to bank fees, wireless and data charges could also apply to these virtual transactions.


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,673.63 -4.60 -0.03%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs