PNC to delay overdraft fees for at least a day with 'virtual wallet' customers

PNC to delay overdraft fees for at least a day with 'virtual wallet' customers
Emily Bary
·1 min read

PNC Financial Services Group Inc. said Tuesday that it will start giving users of its "virtual wallet" offering at least a day to handle overdrafts before the company begins charging fees. The bank will alert customers of negative balances and give them "often more" than a day to address them, which the company said in a release could help customers avoid $125 million to $150 million in overdraft fees each year. The company already factored the potential for this lost fee revenue into its financial outlook. "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," Chief Executive William Demchak said of the company's new initiative, called Low Cash Mode. PNC shares have gained 13.6% over the past three months as the S&P 500 has risen 8.4%.