20 January 2017
visit http://www.wolterskluwerfs.com

Bank of America to offer overdrafts by text

06 May 2011  |  10499 views  |  1 Bank of America Logo web screen shot

Bank of America is to offer customers instant overdrafts by sending them a text message when a debit card transaction takes them into the red.

The US bank, which currently rejects debit card transactions that would take customers over their limit, says the programme will give consumers more control over their financial affairs. The text will offer customers the option to over-ride the rejection in return for accepting an overdraft fee.

Speaking at the RBC Capital Markets financial institutions conference in Boston, Laurie Readhead, BofA's retail segments executive, said the pilot will run in the first quarter of next year.

"We think this is a much better approach, to let the customer choose," Readhead told assembled analysts.

She also elaborated on the bank's ongoing branch closure programme, saying more locations would be downsized or cut from the bank's 5900-strong retail franchise and that some stand-alone operations would be replaced with video ATMs.

In July 2009, the bank announced plans to close around 10% of its branches in response to shrinking customer demand as people turn to online and mobile banking. It has also begun pilot trials of video conferencing in Los Angeles and Washington, with customers talking to Merrill associates in New Jersey, Florida and Arizona.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 10 May, 2011, 12:08

Most implementations of overdraft protection in the US have thus far swung between two extremes: Grant overdraft against a hefty fee even when the customer hasn't asked for it, or decline overdraft even if the customer is willing to foot the bill. Props to BofA for striking the middle ground and implementing a solution at the level of the individual transaction. This also marks a victory for consumer rights protection groups who were equally critical of both the pre- and post-RegE regimes last year and have been campaigning for consumer choice at exactly this granularity since then. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

BofA pilots video conferencing for wealth advice

BofA pilots video conferencing for wealth advice

11 February 2011  |  10196 views  |  0 comments
Banks scramble to fix mobile app security flaws

Banks scramble to fix mobile app security flaws

08 November 2010  |  13685 views  |  2 comments
Bank of America to introduce fee-free online-only account

Bank of America to introduce fee-free online-only account

16 July 2010  |  8817 views  |  0 comments
Wells Fargo extends m-banking app range; offers text banking at ATMs

Wells Fargo extends m-banking app range; offers text banking at ATMs

29 June 2010  |  10041 views  |  0 comments
Wells Fargo and Visa introduce text alert system

Wells Fargo and Visa introduce text alert system

23 March 2010  |  12657 views  |  0 comments
Wells Fargo extends text banking to all customers

Wells Fargo extends text banking to all customers

05 February 2010  |  10191 views  |  0 comments
Americans prefer branches over Internet for bank communication - survey

Americans prefer branches over Internet for bank communication - survey

13 November 2009  |  6316 views  |  1 comments
BofA to close 10% of branches as customers go online and mobile - WSJ

BofA to close 10% of branches as customers go online and mobile - WSJ

28 July 2009  |  7880 views  |  1 comments
Visa tests SMS alert service

Visa tests SMS alert service

22 July 2009  |  10359 views  |  3 comments
Nyce introduces text message balance enquiries

Nyce introduces text message balance enquiries

06 April 2009  |  5241 views  |  0 comments
Lloyds TSB launches SMS 'limit alert' service

Lloyds TSB launches SMS 'limit alert' service

11 September 2007  |  8376 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextraVisit contisgroup.com

Top topics

Most viewed Most shared
Banks face big profit loss to digitisation - McKinseyBanks face big profit loss to digitisation...
15248 views comments | 85 tweets | 107 linkedin
Seven banks plan blockchain platform for SMEsSeven banks plan blockchain platform for S...
12287 views comments | 48 tweets | 42 linkedin
Accenture beats Brexit blues with largest-ever London startup programmeAccenture beats Brexit blues with largest-...
10532 views comments | 30 tweets | 20 linkedin
hands typing furiouslyBlockchain: Time To Get Your Feet Wet
7268 views 0 | 23 tweets | 9 linkedin
RBI told the time is right to digitise the RupeeRBI told the time is right to digitise the...
7226 views comments | 14 tweets | 12 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job