BIZ BUZZ: Thrift banks join fee-cut wave

Thrift banks are poised to follow the country’s biggest lenders in slashing digital transfer fees, betting that higher transaction volumes will make up for the hit to fee income.

Chamber of Thrift Banks chair Manuel Santiago Jr. said several member-banks have already begun matching the moves of universal and commercial banks, with more expected to fall in line soon.

The industry, he said, is taking the long view: Lower fees may trim revenues, but cheaper transfers should encourage customers to move money more often—ultimately boosting transaction volumes enough to cushion the impact.

“I think a number of our members have followed the lead of the universal banks,” Santiago said.

“And I think you will see sooner rather than later that most of our member banks are going to be waiving their fees,” he added.

If that bet pays off, thrift banks could find that making digital transfers cheaper is not just good for customers, it may also prove good for business.

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