Checking accounts shrink by nearly 100 million accounts since 2011
Credit union executives are watching a 12% decline in checking accounts over six years, or about 2.2% drop per year.
The number of checking accounts has fallen by almost 100 million in the last six years, thanks to competition from fintech products and companies such as Walmart, Starbucks and Apple, according to new research from financial institutions analytics company Moebs Services.
Using bank, thrift and credit union data from the NCUA, FDIC and the Federal Reserve, Moebs Services reported that the total number of checking accounts dropped from about 690 million to just over 600 million from 2011 to 2017 — a 12% decline over six years, or about 2.2% per year.
“Depositories need to stop the outflow of the checking account transaction user who keeps no balance and focus on reducing operational cost and installing lower fees to make checking profitable,” Moebs Services Economist & CEO Michael Moebs said. “Otherwise, the likes of Walmart and Amazon will soon dominate the checking account business.”
“Most depositories don’t realize Walmart, and soon Amazon, are taking away their key service,” he added.
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