I agree with rlcarey(first post) as the short form explanation and Zaibatsu (first post) as the long form explanation.

I thought a "good customer" was someone who plays golf with the CEO!

This reply doesn't really belong here, but I JUST CAN'T HELP MYSELF!!! Some banks (especially banks with those ODP programs) are changing the definition of "good customer" to mean those customers who don't manage their accounts well and write lots of bad checks because they pay all those yummy overdraft fees and contribute to Senior Management Bonuses (and overall profitablilty of the bank).

The definition of a "good customer" is actually the same, those who make the bank money.

The difference is income sources are shifting from interest to fees, or at least being augmented by fees. In a scenario of you'll make more than you'll lose, producing a net gain, banks look to ODPs, ATM fees, payday loan affiliations (which are being highly criticized), etc. when interest margins are skinny.

Fee income products present more diversification and less risk as well. While not the traditional banking many of us grew up with, it is evolutionary and there is a method here.

Andy,
I was just going through my monthly bills and realized that I pay far more in charges to basic communication than I do for banking. Between a land phone, cell phone, cable and cable internet access - $$$!!!!! And people complain if their bank charges $10 a month for a checking account!