There’s another report out today (new thread here) which has an interesting piece of info on current overdraft charges:
A small subset of consumers – around 10% - are responsible for 60% of the value that banks derive from PCAs . This subset of consumers mostly either hold high balances in their current accounts or are heavy overdraft users.
Around three-fifths of UK consumers held a free-if-in-credit (FIIC) personal current account in 2016. FIIC accounts do not charge regular fees for core transaction services and continue to spark debate about how they are paid for and who is paying. There has been public concern that provision of these accounts is primarily paid for through overdraft charges incurred by vulnerable consumers, covering losses generated by other FIIC users.
These concerns are largely unfounded. Funding benefit, not overdrafts, is the main source of revenues that banks earn on FIIC accounts.