Banks are responding to new regulations on overdraft fees and debit card interchange with multi-level training programs to adjust frontline staff to necessary product changes.
July 19, 2011
By Robert Stowe England
New regulations mean a rush of training for frontline employees. In the wake of new rules required under the Dodd-Frank Act of 2010, banks are adding new layers of training for their frontline staff.
So far, it would appear that the biggest training challenge for some banks is preparing frontline employees to smoothly handle a switch away from free checking in the wake of a pending cap on debit card interchange or swipe fees. Absent any federal cap, swipe fees have averaged 44 cents, a level of revenues and profits that has allowed banks to subsidize free checking, which can cost the bank between $250 to $350 a year per account, according to Nessa Feddis, vice president and senior counsel at the American Bankers Association.