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Regions (RF) Launches Checking Account With No Overdraft Fees
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Regions Financial Corporation’s (RF - Free Report) subsidiary, Regions Bank, has announced a new checking account with no overdraft fees, Regions Now Checking account. The account will include the convenience of modern banking, while eliminating overdraft fees.
The new account meets the Cities for Financial Empowerment Fund’s national standards for Bank On certification. This indicates that it meets the specific affordability criteria for low-income people.
Regions Now Checking account will charge a low, flat $5 monthly fee, and offer traditional checking account features like check writing, and mobile and online banking with bill pay. Customers will not be charged fees for non-sufficient funds. Also, the account can be linked to other accounts of the bank for overdraft protection, with no fees for overdraft protection transfer. Given the affordable and convenient features, the effort is likely to spike the interest of the underbanked population.
The account complements the company’s “Now Banking” suite of financial solutions, which include Regions Now card, Regions Now savings account and check cashing service.
Scott Peters, head of the Consumer Banking group for Regions Bank, noted, “Regions Now Checking is a natural extension of our commitment to making banking easier by helping people manage and grow their finances through innovative and convenient options.” The move will facilitate customers to easily access and manage their money affordably and safely, which has become increasingly important amid the pandemic.
Checking account aside, Regions has made other advancements in its consumer banking operations. This includes the reduction of the number of overdraft and non-sufficient fund fees, charged on customers’ other account types every day. Also, it improved account alerts to update customers on transaction and account balances.
Our Take
To navigate the low-interest rate environment, Regions has been exploring alternative avenues for growth. Recently, it completed the previously announced deal to acquire the specialized home improvement lender, EnerBank USA, from its parent, CMS Energy Corporation (CMS - Free Report) , thereby, augmenting its presence in the homeowners lending space.
Regions also remains competitive by reserving nearly 10-11% of revenues for technology spend. In 2020, the company redesigned its mobile application and remains on track for further enhancements in both its online and mobile platforms. Apart from this, the company has digitized the sales process.
Shares of Regions have gained 7.3%, outperforming 5.1% growth of the industry it belongs to.
Following the U.S. Senate hearings in May into how banks charge overdraft fees and criticized the practice during the pandemic, banks have started removing the fees and rolled out alternatives at low costs.
In June, Ally Bank, an indirect, wholly-owned banking subsidiary of Ally FinancialInc. (ALLY - Free Report) , announced eliminating overdraft fees on all accounts, with no requirements or restrictions.
In the same month, Toronto Dominion Bank’s (TD - Free Report) subsidiary TD Bank, underlined plans to introduce TD Essential Banking, offering a low-cost, no-overdraft-fee deposit account.
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Regions (RF) Launches Checking Account With No Overdraft Fees
Regions Financial Corporation’s (RF - Free Report) subsidiary, Regions Bank, has announced a new checking account with no overdraft fees, Regions Now Checking account. The account will include the convenience of modern banking, while eliminating overdraft fees.
The new account meets the Cities for Financial Empowerment Fund’s national standards for Bank On certification. This indicates that it meets the specific affordability criteria for low-income people.
Regions Now Checking account will charge a low, flat $5 monthly fee, and offer traditional checking account features like check writing, and mobile and online banking with bill pay. Customers will not be charged fees for non-sufficient funds. Also, the account can be linked to other accounts of the bank for overdraft protection, with no fees for overdraft protection transfer. Given the affordable and convenient features, the effort is likely to spike the interest of the underbanked population.
The account complements the company’s “Now Banking” suite of financial solutions, which include Regions Now card, Regions Now savings account and check cashing service.
Scott Peters, head of the Consumer Banking group for Regions Bank, noted, “Regions Now Checking is a natural extension of our commitment to making banking easier by helping people manage and grow their finances through innovative and convenient options.” The move will facilitate customers to easily access and manage their money affordably and safely, which has become increasingly important amid the pandemic.
Checking account aside, Regions has made other advancements in its consumer banking operations. This includes the reduction of the number of overdraft and non-sufficient fund fees, charged on customers’ other account types every day. Also, it improved account alerts to update customers on transaction and account balances.
Our Take
To navigate the low-interest rate environment, Regions has been exploring alternative avenues for growth. Recently, it completed the previously announced deal to acquire the specialized home improvement lender, EnerBank USA, from its parent, CMS Energy Corporation (CMS - Free Report) , thereby, augmenting its presence in the homeowners lending space.
Regions also remains competitive by reserving nearly 10-11% of revenues for technology spend. In 2020, the company redesigned its mobile application and remains on track for further enhancements in both its online and mobile platforms. Apart from this, the company has digitized the sales process.
Shares of Regions have gained 7.3%, outperforming 5.1% growth of the industry it belongs to.
Currently, Regions carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Competitive Landscape
Following the U.S. Senate hearings in May into how banks charge overdraft fees and criticized the practice during the pandemic, banks have started removing the fees and rolled out alternatives at low costs.
In June, Ally Bank, an indirect, wholly-owned banking subsidiary of Ally Financial Inc. (ALLY - Free Report) , announced eliminating overdraft fees on all accounts, with no requirements or restrictions.
In the same month, Toronto Dominion Bank’s (TD - Free Report) subsidiary TD Bank, underlined plans to introduce TD Essential Banking, offering a low-cost, no-overdraft-fee deposit account.