SAN ANTONIO–A new analysis suggests a strong correlation between active check-writing among consumers and “high-value financial relationships.”
The analysis, compiled by Harland Clarke and Nielsen, said it found that check writing increases with income among all age groups, including Generation Y.
“There is a strong parallel between household income and the frequency of check usage,” the company’s research found. “Among all age groups, higher-income accountholders write more checks. Accountholders age 55+, with annual household income levels exceeding $75,000, wrote the most checks overall. Similar to income, check writing increases as income producing assets (IPA) grow. Starting at an even younger age—35 and older—accountholders with high IPAs write more checks.”
The two companies said they found that “checking accountholders born from 1980 to 2000 may hold a key to the future of your bank or credit union. Over the next decade, this group is expected to replace Baby Boomers as the largest, wealthiest consumer segment. As they mature and acquire more assets, higher income Generation Y consumers may have a profound impact on check-writing activities, as well as the purchase of other financial services.”
Perhaps not surprisingly, the companies said the research shows that active check writers use more financial services. On average, frequent check writers acquire 4.72 financial products and services from their primary financial institution—about two more services than non-check users, Harland Clarke and Nielsen said.
An overwhelming 96 percent of active check writers maintain primary checking accounts with their PFIs. Fifty-five percent remain in relationships with their PFIs ten years or longer. How do they feel about their PFIs?
According to the research:
- 85% are “extremely” or “somewhat” satisfied
- 75% are “not very” or “not at all likely” to switch in the next 12 months
- While active check writers are very satisfied with their PFIs, a significant percentage also has relationships with other financial institutions
- 63% maintain two or more institutional relationships
- 32% own two or more checking accounts