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M&T Bank (MTB) Eases Consumers' Short-Term Cash Requirements
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To aid customers in better steering their financial lives, M&T Bank (MTB - Free Report) recently launched numerous initiatives to make banking articulate, carefree and accessible. New offerings for customers included removal of non-sufficient funds fee and an overdraft protection transfer charge from a linked deposit account as well as diminishing overdraft fees to $15 and limiting daily fee assessment to once per day.
The alterations are scheduled to be effective this second quarter of 2022.
MTB is a member of the Bank On coalition, which aids local financial institutions in connecting consumers to secure and economical bank accounts. The current move aligns with the firm’s commitment to guide customers in their financial wellness.
Over the past few years, MTB has brought several banking solutions to the table. MyWay Banking is a Bank On certified account with no overdraft fees but has facilities of traditional checking services. With M&T Alerts, consumers can be notified when funds reach a specific threshold necessitating a money transfer or spending reduction.
M&T Money Smart in the mobile application can support customers to track spending and income as well as the projected cashflow and spending trends. Mobile Flash Funds service helps customers avoid overdrafts to make withdrawals or purchases by offering prompt availability for eligible mobile deposits for a fee. M&T Bank also has the Overdraft Protection solution that can be facilitated via a linked MTB savings account, line of credit and credit card.
Rolling out new offerings is a commendable move by the bank to retain its consumers and bring in new ones. However, waiving off non-sufficient funds fee is likely to induce lower fee income, thereby straining top-line growth.
M&T Bank’s shares have gained 31.6% in the past six months, outperforming the industry’s growth of 9.1%.
Following the U.S. Senate hearings in May 2021 on how banks charge overdraft fees and the criticism of this practice during the pandemic, banks started removing the fees and rolled out alternatives at low costs. Banks such as Ally Financial (ALLY - Free Report) , Toronto Dominion Bank (TD - Free Report) and Regions Financial (RF - Free Report) took steps to either curb such fees or provided tools to their clients to limit the charges.
In October 2021, Regions Financial’s subsidiary Regions Bank had announced a new Regions Now Checking account with no overdraft fees. The account included the convenience of modern banking, while eliminating overdraft fees.
Last June, Ally Bank, an indirect, wholly-owned banking subsidiary of ALLY, announced eliminating overdraft fees on all accounts with no requirements or restrictions.
In the same month, Toronto Dominion’s subsidiary TD Bank announced plans to introduce TD Essential Banking, offering a low-cost, no-overdraft-fee deposit account.
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M&T Bank (MTB) Eases Consumers' Short-Term Cash Requirements
To aid customers in better steering their financial lives, M&T Bank (MTB - Free Report) recently launched numerous initiatives to make banking articulate, carefree and accessible. New offerings for customers included removal of non-sufficient funds fee and an overdraft protection transfer charge from a linked deposit account as well as diminishing overdraft fees to $15 and limiting daily fee assessment to once per day.
The alterations are scheduled to be effective this second quarter of 2022.
MTB is a member of the Bank On coalition, which aids local financial institutions in connecting consumers to secure and economical bank accounts. The current move aligns with the firm’s commitment to guide customers in their financial wellness.
Over the past few years, MTB has brought several banking solutions to the table. MyWay Banking is a Bank On certified account with no overdraft fees but has facilities of traditional checking services. With M&T Alerts, consumers can be notified when funds reach a specific threshold necessitating a money transfer or spending reduction.
M&T Money Smart in the mobile application can support customers to track spending and income as well as the projected cashflow and spending trends. Mobile Flash Funds service helps customers avoid overdrafts to make withdrawals or purchases by offering prompt availability for eligible mobile deposits for a fee. M&T Bank also has the Overdraft Protection solution that can be facilitated via a linked MTB savings account, line of credit and credit card.
Rolling out new offerings is a commendable move by the bank to retain its consumers and bring in new ones. However, waiving off non-sufficient funds fee is likely to induce lower fee income, thereby straining top-line growth.
M&T Bank’s shares have gained 31.6% in the past six months, outperforming the industry’s growth of 9.1%.
The stock currently 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 2021 on how banks charge overdraft fees and the criticism of this practice during the pandemic, banks started removing the fees and rolled out alternatives at low costs. Banks such as Ally Financial (ALLY - Free Report) , Toronto Dominion Bank (TD - Free Report) and Regions Financial (RF - Free Report) took steps to either curb such fees or provided tools to their clients to limit the charges.
In October 2021, Regions Financial’s subsidiary Regions Bank had announced a new Regions Now Checking account with no overdraft fees. The account included the convenience of modern banking, while eliminating overdraft fees.
Last June, Ally Bank, an indirect, wholly-owned banking subsidiary of ALLY, announced eliminating overdraft fees on all accounts with no requirements or restrictions.
In the same month, Toronto Dominion’s subsidiary TD Bank announced plans to introduce TD Essential Banking, offering a low-cost, no-overdraft-fee deposit account.