Bank of America Corp (NYSE: BAC) is set to test a number of new pricing packages which are modeled after mobile phone service contracts in an attempt to generate additional income to off-set lost revenue from restrictions on debit and credit card fees, the Financial Times reports.
The Charlotte-based bank hopes to create a tiered price system which rewards customers for maintaining minimum account balances and making use of their credit cards. The bank also hopes to reward customers that do all of their banking online. Customers that have a higher carrying cost are expected to be charged more.
“We’re not guaranteeing that we will recover all of the revenue lost as a result of the new regulations, but over several years we think we’ll get back a good share,” said Bank of Amreica consumer bank head Joe Price to the Financial Times.
CEO Brian Moynihan recently said at an investor conference that the bank will attempt to recover much of the lost revenue, saying that “Over the next 12 months, we will reset the entire product line.”
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.
Shares of Bank of America Corp (NYSE: BAC) traded up 3.26% during mid-day trading on Friday.
