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Banking Briefing — January 17, 2022

  • Overdraft fees have been under a lot of scrutiny recently, and more banks want to show they're above this revenue source.
  • But can banks really get away with getting rid of these unpopular fees while still staying afloat?
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Banking Briefing — January 17, 2022

Tearsheet’s Briefings for Outlier members give a deeper and contextual weekly look into banking, payments, blockchain, green finance, and embedded finance. Subscribe to Outlier to get full access to Tearsheet content.

In October last year, overdraft fees were reported to have reached a record high of $33.58, according to research by Bankrate. 

Still, the amount of money banks are actually bringing in through overdraft fees has been going down – that’s largely due to the pandemic, and banks waiving overdraft fees in response. 

In 2020, revenue from overdraft fees was $8.82 billion – down almost 3 billion compared to 2019, according to research from S&P global intelligence. In the first 9 months of last year, revenue from overdraft fees was around $6.13 billion.

Overdraft fees’ footprint in banks’ revenue stream may be shrinking. 


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