Wasting money trying to reduce paper check usage?
Paper checks are expensive, time consuming and maybe even annoying, but still a popular form of payment that the best of marketing efforts have not been able to diminish. Statistics everywhere demonstrate the continued use of paper checks regardless of age, expensive checking account fees and the convenience of eServices. So why can’t we convince members to kick the paper check routine with all of our faster, more efficient alternatives?
Many statistics offer information on overall usage of paper checks by segmented market groups which makes it easy to conclude things like: Gen Y is still using checks so we still need them. Well… most Gen Yers have never used paper encyclopedias or that insanely huge paper dictionary in the library and have survived quite well with the electronic alternatives. Chances are also slim a Gen Yer has owned a paper phonebook or map, yet are completely happy with all that information in the palm of their hands. So why would one conclude that members of Gen Y are using paper checks because they prefer it to electronic alternatives?
As a Gen Y, eEverything member myself I write an average of 5 paper checks a month, but here’s why: the organizations I send the checks to won’t accept any other form of payment. Plain and simple, I don’t want to write checks, I have to. If I was offered an eEverything, rewards checking account that dispensed cash from the charging port of my phone I still couldn’t pay all my bills with it. I don’t need anyone to bring it to my attention that ePayment options are more efficient, I need someone to convince those organizations of it.
Regardless of generation, how many times have you spent money to tell a member they could save a stamp or pay bills in their pajamas by switching to ePayment services? Are members truly concerned about their annual stamp budget or what they’re wearing while transacting on their mobile devices — of course not. They’re concerned about online security, frustrated with businesses that will only take paper checks, don’t want to pay for a service to pay their bills when writing a check is free, or some other obstacle that they need removed.
The ultimate solution is for all intuitions to collectively decide the paper check has run its course and will no longer be offered. Until that happens though, you’ll need a better understanding why your members are still writing paper checks and be able to offer a viable solution that actually works for their scenario to reduce paper check usage at your credit union. Ironically, my advice to you: save a stamp mailing to members touting they can save a stamp – offer a solution rather than a gimmick.
