By Ray Birch
BROOKFIELD, Wis.—Fewer consumers are tossing away paper monthly statements and instead are opting for both digital and hard copy, says Fiserv, which added that in an unexpected twist, it’s Millennials who are leading the way on the trend.
Fiserv said data show that the migration to e-statements from paper has slowed, dipping to 1%-2% annual growth.
“Credit unions should not overlook the paper statement, because members still want it and they spend time reading it,” said Chris Chronis, director of product marketing and research at Fiserv. “Credit unions should carefully consider how they use their paper statement to reinforce their brand and cross sell.”
Chronis said that consumers’ desire to move away from paper, which many had projected would disappear, is changing—consumers now want to carefully choose their communications delivery channels and devices.
“People are migrating to digital but they are not getting rid of paper; they are keeping both and from there they will decide which channel to turn off,” said Chronis.
Millennials Choose Paper
Those most likely to opt for the paper statements are Millennials, which Chronis acknowledges would surprise many credit union CEOs.
“Thirty-two percent of credit union members are getting e-only statements, so 68% are still getting paper,” said Chronis. “What is interesting is that those who are turning off paper are not Millennials, they’re Boomers. That is a big change that has happened over the last few years. Boomers are more likely to be either digital or paper, Millennials want both.”
Fiserv data shows that 55% of Millennial members take both paper and e-statements, while Boomer members come in at 30%.
Chronis contends that many CU leaders have not spotted this trend.
“Recently, we spoke to the CEO of a credit union and he told us that he believes his members don’t read their monthly statement,” said Chronis. “And then we shared with him our data that shows people are spending time each month reading their paper or e-statements. So the monthly statement, often viewed as an operational document, is a means to reinforce your brand and do targeted marketing.”
Fiserv data reveal that consumers each month spend five to six minutes reviewing their monthly statements, whether they are electronic or paper.
“That’s nearly an hour a year,” said Chronis. “Where else are you going to get that kind of time in front of your members to communicate?”
What should CUs do to optimize their paper and e-statements for impact?
“We know that consumers like messages that are personalized and relevant to them, so do that and make messages actionable. So for e-statements, drop in a link to a web landing page, or use a QR code. For paper, obviously, let members know how they can follow up,” Chronis said.
Chronis said he has seen progressive credit unions dropping in video with their e-statements.
“This trend is just starting,” he said.
Poll Members
Chronis emphasized that with consumers debating how they want to best receive their monthly statements, that credit unions should poll members to find out their preferences.
“And you will likely find that not only do members differ in how they want to receive communications, their preferences will change based on the information they receive,” added Chronis. “Some will want digital for the monthly statement but paper for their credit card, so they can keep payment records on hand.”
While credit unions are asking members how they prefer monthly communications, at the same time they should find out if account holders have kids at home. Fiserv believes that having children at home increases the need for paper statements.
“We are testing our hypothesis that having children at home can influence account holder behavior,” said Chronis. “We think having kids at home makes for a more complicated lifestyle, so people want physical records at hand. The data so far is fascinating—if a consumer has children living at home 73% will take paper, and many are getting digital as well. Compare that to empty nesters, or those without kids, who 53% of the time ask for paper.”
If the credit union is not paying attention to the paper statement and leveraging it as a communications tool, they’re missing a marketing opportunity, said Chronis.
“Look at it this way, if you are not doing this, your competitors might be,” he said.