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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27018
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| Title: | Is There a Customer Relationship Effect from Bank ATM Surcharges? |
| Authors: | Massoud, Nadia
Saunders, Anthony
Scholnick, Barry |
| Issue Date: | Jul-2003 |
| Series/Report no.: | S-FI-03-05 |
| Abstract: | This paper investigates the use of ATM surcharges as a strategic device
to increase bank profitability. We show that ATM surcharge changes can
have both a direct effect on bank profitability and an indirect effect
via customer switching and a related customer relationship effect. That
is, customer switching results in an increase in the demand for other
services provided by the surcharge-increasing bank. Using unique
databases, we provide evidence to show that overall bank profitability
is favorably affected by surcharge increases. We also show evidence
supporting the existence of an indirect effect, especially for larger banks. |
| URI: | http://hdl.handle.net/2451/27018 |
| Appears in Collections: | Financial Institutions
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