Recognizing Highly Competitive Banking Industry, Efforts to Provide Consumers Unprecedented Choice & Transparency

September 27, 2022

Following remarks from the White House Competition Council regarding cost-savings for American families, the Consumer Bankers Association (CBA) is correcting misinformation and reiterating the consumer benefits of a highly competitive banking industry.

As CBA President & CEO Lindsey Johnson said of the remarks:

“We're glad the Administration recognizes all that America’s leading banks are doing to support consumers, especially at a time of significant economic uncertainty for the country. Our industry is among the most competitive in the world, enabling consumers to choose from nearly 5,000 financial institutions. This competition is driving banks to constantly innovate, producing new products and services for consumers to avoid unintended fees—all without regulatory or legislative intervention—as they have done for more than a decade. We hope policymakers and regulators will continue to acknowledge the commitment banks have made and continue to make to help consumers thrive.” 

Banks’ Commitment to Lead Economy, Consumers Through Uncertainty

In a new op-ed published in RealClearPolicy, CBA President and CEO Lindsey Johnson outlined the many ways in which America’s leading banks have helped lead the country through recent economic uncertainty and the steps they are taking to continue supporting hardworking families, small businesses, and communities. In her op-ed, Johnson writes about banks’ support of consumers during the COVID-19 pandemic:

“During this time, banks also continued to unveil new products and services to provide consumers greater choice, transparency, and control of their money, most notably in the overdraft marketplace, where a growing share of banks now offer innovative overdraft solutions to meet the evolving demands of the people they serve. These reforms from the nation’s largest banks, have occurred without regulatory or legislative intervention and collectively represent a transformational moment in time for the industry. In fact, new data from Curinos estimates that if current trends continue, overdraft fees are expected to fall by nearly 70% by next year, yielding more than $28 billion in savings for hardworking Americans by 2025.”

The Power of Choice

The Power of Choice from Consumer Bankers Association on Vimeo.

CBA has been working to underscores banks’ commitment to meet evolving consumer demands and deliver for the millions of Americans they serve, highlighting the consumer benefits of our highly competitive and well-regulated banking industry today:

  • Well-Regulated Industry: As opposed to many segments of the economy where Americans are charged fees, fee charges and disclosures in banking are heavily regulated at the federal and state levels. In some instances, these oversight requirements have been in place for more than half a century.
  • Highly Competitive Landscape: Because the banking industry is among the most competitive in the world, banks are incentivized to constantly review and modernize products and services – and potential fees that come along with them – to meet evolving demand and attract new customers, fostering even greater transparency and choice for consumers.
  • Empowered Consumers: Thanks to new bank-led innovations, consumers are now empowered with the financial tools they need to anticipate or avoid fees. In contrast to many fees charged by other industries, banks are required by law to disclose potential fees before a consumer chooses a product or service. 

The Impact of Innovation 

Recent bank-led innovations in the overdraft marketplace are providing consumers even greater choice and flexibility to make informed financial decisions. According to new data from Curinos, the impact of these new products and polices for consumers is significant and wide-reaching:

  • Overdraft fees are expected to fall by 68% between 2008 and the end of 2023. Curinos also projects institutions with pledged and adopted reforms will reduce overdraft fees by 50% in the period 2019 to 2023.
  • These changes are expected to result in $167 in annual savings per U.S. adult by year end 2023.
  • If current trends continue, consumers could save more than $28B in the five-year period between 2021 to 2025.

To learn more about how America’s leading banks are delivering for the families, small businesses, and communities they serve, visit