News Release Details
Financial Press Release
PNC Launches Low Cash Mode(SM) To Address $17 Billion In Industry Overdraft Fees
"Low Cash Mode gives our customers the ability to avoid unnecessary overdraft fees. With this new tool, we're able to shift away from the industry's widely used overdraft approach, which we believe is unsustainable," said
Built on patent-pending technology, Low Cash Mode℠ comes with the Spend account inside of PNC's industry-leading Virtual Wallet® and gives customers Payment Control, including the power to prioritize by determining whether certain debits (checks and ACH transactions) are processed that otherwise might result in overdrafts, rather than the common industry practice of the bank making the decision. Real-time intelligent alerts let customers know when their balance is low and – if it is negative – Low Cash Mode℠ provides at least 24 hours of "extra time," and often more, to prevent or address overdrafts before fees are charged.
With the implementation of Low Cash Mode℠, PNC expects to help its customers avoid approximately
"While we expect to realize a reduction in fee revenue, we firmly believe that this innovative and differentiated approach will drive significant growth in new and existing customer relationships over time as we execute our national expansion strategy," said Demchak.
While overdraft protection offered across the industry today allows critical payments to be processed, overdraft fees are a systemic frustration that drive dissatisfaction for all customers regardless of their financial situation.
"We understand that regardless of income or level of wealth, everyone has low-cash moments," said
Low Cash Mode℠ has been thoroughly tested and showed impressive results during a pre-launch pilot with nearly 20,000 customers, helping them collectively reduce overdraft fees by more than 60%.
Low Cash Mode℠ launches nationwide to Virtual Wallet® customers in June and July via the PNC Mobile Banking App on Apple and Android phones. The feature is currently available to Virtual Wallet® Checking Pro users, and Virtual Wallet Student® users will have access during April. Pending regulatory approval and the anticipated close and conversion of PNC's acquisition of
Virtual Wallet®, a best-in-class bank account and money management solution, is supported by powerful, patented digital tools that help customers plan and track spending. PNC provides these and other deposit, lending, credit card, cash management and investment services to help individuals, families and businesses achieve financial well-being.
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