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B of A Backtracks on Debit Fees—Technology News quotes Rita McGrath

“Bank of America might have been able to pull this off if the other banks had stuck to their plans for similar fees,” Gunther McGrath continued.

‘In some industries, even highly disliked ones, companies can get away with charging customers extra because extra charges are adopted by all competitors quickly. Remember the howls of protest when airlines started charging for checked bags? That move stuck because all the airlines did it at once, and customers didn’t have a choice of going to a non-fee charging airline.’

Bank of America’s competitors, though, essentially left the bank stranded on an ice float with this charge, she said.

To read the entire article, click here.

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