Banks underestimate small-business owners' aversion to fees at their peril
When nbkc bank started offering its small-business banking accounts nationwide, management's first priority was to ensure the accounts had low fees, if any at all.
At the time back in 2018 this was an unusual move by a bank, said Melissa Eggleston, chief deposit officer for the Kansas City area bank. The $1.1 billion-asset bank made the strategic decision to forgo the short-term revenue that it could potentially generate by charging small-business owners more fees.
Instead, the bank decided to focus on building long-term relationships with these entrepreneurs by offering a more competitive product. Today, the bank's website proudly proclaims that business owners will pay no fees for a range of services, including incoming wire transfers from anywhere in the U.S, online banking and bill payment.
It was a breath of fresh air for them, Eggleston said. Historically a small-business customer would walk into a local bank and expect an extensive fee schedule.
Melissa Eggleston, chief deposit officer of nbkc bank, said that her institution's low- and no-fee checking account was a breath of fresh air for for small-business customers.
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