Union Bank, ranking fourth among Californian banks with over $60 billion in deposits, is introducing a new service called ‘Banking By Design’ for its checking accounts and other services. Though Union Bank has branches in California, Oregon, and Washington, this new feature is currently available only to California residents. The online platform is user-friendly, offering a variety of service options which are instantly priced as customers make their selections.
The base monthly service fee for the account is $3, but this can be waived if the customer sets up a direct deposit of $250 or more each month, instead of $100. A minimum deposit of $100 is required to open the account. Services like debit and credit cards, online banking, online statements, mobile banking, and email and text alerts are provided at no cost.
Online bill pay costs $1.50 per month but will be free throughout 2013. Other features, like paper statements, unlimited checks, incoming wire transfers, money orders, traveler’s checks, and cashier’s checks, are each billed at $1 per month. The highest fee is $3 per month for non-Union Bank ATM transactions, with a limit of two transactions per month.
Customers can create their customized account at bankingbydesign.com. Once completed, they need to contact or visit a local Union Bank branch to open the account. Currently, accounts can only be activated by calling or visiting a branch, but a fully online process will be available starting January 2013.
‘Banking By Design’ offers a variety of optional features with clear fees, breaking away from the traditional checking account structure. Many features are free, and more enhancements are planned for 2013 to improve the platform further. The platform was developed by a team including Michael Neuman, a Human Factors Engineer with experience at Apple®.
Although most customers might not need all the services provided by ‘Banking By Design’, some features can be cost-saving. Union Bank differentiates itself by clearly listing all account fees, except for overdraft fees and protection options, which are not mentioned. While major banks like Chase and Citibank are moving towards more straightforward fee disclosures, Union Bank’s tool aids customers by automatically calculating monthly charges, making it easy to understand how much they will spend each month.