Banks that value profit over customers, should expect to lose shoppers’ loyalty

Bank of America (BoA) has finally pulled the last straw with its customers. Ranked the second largest bank in the U.S., BoA announced its newest resolution in September—debit card usage fees. The big bank announced that in 2012, it would begin charging $5 each month for card usage outside of ATMs. Perhaps, the over $38.5 billion dollars earned annually by BoA in overdraft fees is just not enough to handle this crumbling economy. According to the BoA chief executive officer, Bryan Moynihan, the company has "a right to make profit" and thus such charges are privileges. The CEO, even after being admonished by President Obama, went on to say, "I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders."

Well in that case, Mr. Moynihan, sure, take $5 every month from me, your loyal customer. After all, this is merely an economic security measure to avoid the effects of the recently passed Dodd-Frank Act, which applied regulatory reform to prevent another financial meltdown. This measure, based on BoA's "entitlement" to financial safety, obviously takes into account reciprocated loyalty and commitment to the bank's clientele—doesn't it?

After all, only about two thirds of Americans use debit cards as their preferred form of payment. Of these Americans, only 21 million BoA customers would be affected by such "profitable" changes. Lastly, SunTrust Bank ($4), Chase Bank ($3) and Wells Fargo Bank ($3) continue to charge debit card usage fees to their customers, which inherently means BoA must compete and rescind the value and guaranteed rights of their customers.

Here, I begin to question if BoA officials are considering my rights and loyalty as their customer. Are we all not entitled to make a profit? Do we not all have an inherent duty to get returns from our own personal investment, be that a buck or all the Benjamins? If the responses to these questions are positive, then what made Brian Monyihan believe that I, and the rest of his customers, would not just seek personal profit elsewhere? There are nearly 8,000 commercial banks waiting for business, and their first duty is me, the customer.

I have to ask Mr. Moynihan one of these days why he assumed that customers would "understand what we're doing." In fact, over 66 percent, according to Associated Press-GfK poll, did not understand the bank's motive and were more than willing to switch their form of payment or their banks. As Sen. Dick Durbin said, "I would have fled from Bank of America. When opening an account with Bank of America, my understanding and assumption of this institution was that they were the ‘bank of opportunity' with "higher standards."

Luckily, however, since BoA's announcement, Mr. Moynihan must have listened to the threats of more than 21 million customers. On Nov. 1, little over a month after their announcement, BoA rescinded its "profitable" change with debit card usage fees. Possibly the decision by Wells Fargo, SunTrust and J.P. Morgan, the largest U.S. bank, to terminate their fees influenced BoA's change of heart. Perhaps, having been taken over by J.P. Morgan in the third quarter of October may have influenced them. However, the fact is that the customer's well being had nothing to do with the fundamental change. Nonetheless, BoA officials would like to present this as their standpoint for such a quick change. "We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee…as a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so," said David Darnell, co-chief operating officer at Bank of America.

Sure, sir, but I am no longer a confident, nor trusting, customer of Bank of America, and next time I'll make the first move. After all, I hear Wells Fargo knows "together we'll go far," and I'm looking to "make profit" of my own and fulfill my own "my inherent duty."