Financial institutions trending to paperless

June 4, 2014 – KeyBank in Cleveland is the latest in a trend of financial institutions to offer “checkless checking” accounts in order to attract consumers who prefer going paperless, and to save money.

The “Hassle-free Account” allows consumers to pay bills through the bank’s website, according to Cleveland.com. According to the article:

“There are three big drivers behind checkless checking and prepaid debit cards: 1. Banks are looking for ways to reduce expenses. Accounts that are electronic with little or no paper are a good way to cut costs. 2. Banks want to find ways around new regulations that limit fees they can charge on debit cards. Prepaid debit cards are exempt from these rules. 3. Customers are pushing back against the end of free checking accounts. … customers don't like the headaches of surprise fees or the hassle of keeping up with certain numbers of transactions or minimum balances. Banks that offer an alternative could have a competitive edge.”

According to first-quarter call report data from NCUA, 73 percent of federally insured credit unions offer home banking online, and 59 percent offer online bill payment. Thirty-nine percent offer mobile banking, and 63 percent offer electronic statements. Only 14 percent offer remote deposit capture, which allows consumers to deposit checks through scanning or taking a picture of a paper check and then uploading the picture to the institution’s website.

 

Related Links