Gen Y says ‘no thanks’ to digital-only checking accounts

by. Rob Rubin

In a recent BankChoice Monitor survey, only 24% of Gen Y consumers currently shopping for checking accounts are comfortable with an account that requires they only use electronic channels like mobile banking and ATM machines, compared to 33% of Gen X consumers aged between 30 and 39. In fact, even checking account shoppers aged between 50 – 59 are slightly more likely to be comfortable with these types of checking accounts.

Some traditional institutions offer “e-Checking” accounts similar to direct banks like Ally — free, provided that customers receive statements electronically and only use electronic channels for their transactions. It’s clear why these accounts appeal to banks: customers cost less to service than customers who visit branches and call contact centers. Marketers typically target this product towards younger consumers, but the sweet spot for these e-Checking accounts is really Gen X consumers.


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