As of now Bank of America (BoA) has not
directly made comments about the elimination of eBank although BoA has
clarified the error made by many that Bank of America has just started to phase
out customers’ eBanking accounts as they have been doing this for a few years
now. While trying to face the backlash brought on by excluding certain demographics
from having access to free banking. In another article, Rep. Waters has a few questions
for Bank of America Chairman
“Given Bank of America’s obligations under
the law, like the Community Reinvestment Act, please list all current products
and services, along with any related fees and minimum balance requirements on
them, which are marketed or otherwise offered to low-income consumers and
communities in the United States," -Maxine Water
Bank of America has created a rebuttal by
putting themselves ahead of their competition. Bank of America goes on to state
of how their Core account is the lowest qualifier in the industry.
"This is one of the lowest qualifiers
in the industry and a great value," Bank of America spokeswoman Betty
Riess told CNBC. She added that the Core Checking
option "provides full access to all our financial centers, ATMs, mobile
and online banking" and told the Chicago Tribune that — in the newspaper's words — "only a
small number of customers still had e Banking accounts."
Which after doing a bit of research it is (see
image below).
Bank of America seems to continue to talk about the benefits
offered by the core account instead of dealing with the subject of how customer
who cannot afford the fee will maintain a banking account. Bank of America has
even talked about Safe Balance which still allows low and medium income
customers to maintain an account at BoA although for a small fee. As of now
SafeBalance seems to be the only other choice available as a low fee based
account for BoA as there is no other “Free fee account” on their site.
I think Bank of America (BoA) has a great
marketing team behind them especially when it comes to bringing down the
competition when comparing their “wrongs” to other. I understand admitting a
problem is hard for allot of companies especially with the backlash although I must
say BoA way for promotion is something else. Although Bank of America ability
to try to sale I mean push people on Core account gets an “A+”.
Dear Nikera,
ReplyDeleteI like how you researched the topic and found out what competitors were offering in order to get more insight into the ethical situation. Furthermore, I agree with you how they should deal with the customers who cannot afford the fee will maintain a banking account, as this population can benefit them, if not ethically, then at least economically.
I believe the banks are able to afford to have such account open as with the low percentage report it would not hurt them financial although my preceptive is that banks do have a utilitarian mind set for themselves and later for many others (as regards to the banks future). I think deontological comes into play when it is time to produce GRI or ESG reports.
DeleteDear Nikera,
ReplyDeleteAs you mentioned at the beginning, Bank of America (BoA) has not directly made comments about the elimination of eBank although BoA has clarified the error made by many that Bank of America has just started to phase out customers’ eBanking accounts as they have been doing this for a few years now. In my opinion, it will be much better if the bank can clearly tell public why they do so and what their considerations are, it will be much more better.
Yes it would be best if they bank was more transparent on this issue another problem i found with this subject was the fact I could not find the data as to why it was discontinued.
DeleteDear Nikera,
ReplyDeleteI think this situation is part of a bigger problem which is expressed especially in America. Inequality and increasing gap between rich and poor are raising issue in most of developed countries. I agree that having a bank account today is necessity, not a luxury, so I think that banks (especially center bank) should invest greater effort in allowing people with lower income to have one.
I agree with you statement I do think have a bank account especially for people over 25 ( minimum fee age for Bank of America). I was surprised by the amount of people in general who do not have bank account. This was even more interesting after I found out who among my peers also do not have a bank account.
DeleteDear Nikera,
ReplyDeleteI think you have clearly showed how Bank of America faced about their ethical problem. For instance, they continued to talk about the benefits offered by the score account. However, they didn't deal with problem that some poor people cannot afford Safe Balance. I think this is objective.
This does appear objective while reading you post I was wondering if Bank of America was being truly honest about the percentage of their customer who had eBanking account or was that reported percentage a result of one of their earlier switching due to phasing out the product.
Delete