WorkPlace banking: who benefits?

by Erin McCune on March 19, 2008

in Banking

A new report from Mercator Advisory Group describes banking services targeted at corporates and their employees:

With lessons learned from retail banking, corporate banking product management is repackaging products and services for corporate customers' and their employees, such as direct deposit and convenient online banking, effectively opening up a whole new market. This report looks at WorkPlace Banking, which delivers banking services to employees at their job site. These new services help employers turn payroll and banking services into value added employee benefits. Banks and corporate customers are working together to customize additional value added personal banking programs to attract and retain employees, features such as reduced rates and waived fees. Services include free checking, online banking, health savings accounts and investment guidance. There are rewards programs where banks issue points on debit card dollars to purchase discounts at major retail chains.

Typical WorkPlace banking products/features:

  • Loan discounts
  • Free online banking with bill pay
  • Free teller services
  • Preferred credit card rates
  • ATM surcharge rebates
  • Equity trade discounts
  • Monthly fees
  • Check enclosure fees
  • Debit per check fees
  • Employee education

The benefits for bankers are clear – access to new customers and incremental revenue. Employees gain the convenience of having banking facilities onsite or readily available and enjoy discounts. But I don't think that WorkPlace banking is enough of a perk to make a material difference in employee retention. And I wonder whether employees comfortable tying their banking relationship to their employer. They may have [real or imagined] privacy concerns.

Workplace Banking offerings from a few banks:

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