The Scoop: The Future of Checking Accounts
May 18, 2022
With fundamental financial changes reverberating around the globe, one thing we don’t anticipate will change is demand for checking accounts and the march forward of digital product delivery.
Here’s our scoop on the latest industry news.
The Future of Checking Accounts
Whatever they’re called in the future, checking accounts remain a primary account for consumers across all demographics. As this universal product continues to evolve in a digital world, it’s critical that FIs avoid diluting checking into the cheapest commodity product possible, but instead invest in making it more appealing with the differentiating value prospect. It’s perplexing that FIs don’t leverage the wonderful platform they already have in place: an account that 80% of consumers have that’s way overdue for a makeover that can directly drive more revenue, and happier customers. Don’t fret about what checking accounts are called, fret over how to make them better.
Cannabis Bill Gets Senate Buzz
When you first see news about a bill being debated in the U.S. Senate titled the “SAFE Banking Act,” your thoughts naturally turn to regulations that will make your hard-earned dollars deposited at your FI more secure and better protected. Well, when you read the fine print the Act is about enabling state-licensed cannabis firms to use banking services. This cash-only business is getting both Democratic and Republican Senators hopped up on finding ways to legally let these firms stash their cash in FIs. I hope the Senate and House avoid the buzzkill of continuing not to provide banking services to cannabis companies.
Cashing in on the Subscription Economy
You say “tomayto, I say tomahto.” Banks say “fees,” and neobanks say “subscriptions.” And guess what…modern consumers love it. But this is more than just semantically flipping the script. Neobanks are investing in product features and perks that modern consumers are gladly willing to pay for. So why in this time of a revenue challenge aren't traditional FIs doing the same? Lots of reasons, all of them lame. You don’t even have to be original in product design or marketing to make it happen. Heck, here’s a primer on how to get started.
New Research from Ron Shevlin
According to the new research report, Creating a Fintech Revenue Engine, after a record-setting financial performance in 2021, community financial institutions are now quickly staring down the barrel of a revenue recession in 2022. Ron Shevlin and Tristan Green of Cornerstone Advisors provide compelling insights and solutions to address the revenue recession driven by declining fee income and waning interchange income. Download the free report.