Depository checking accounts are falling, yet balances rising, as the new kids on the block, fintech firms like Walmart, pick up what is being let go. Moebs Services, a financial service research firm, has affirmed this trend using bank, thrift, and credit union data from the FDIC, NCUA and the Federal Reserve. Most depositories don’t realize that Walmart, and soon Amazon, are taking away their key service.
The total number of checking accounts peaked nationally in 2011 at just under 700 million accounts per the FDIC, NCUA, and Fed data. Since then total checking accounts have declined at depositories. In 2017 total checking has fallen to slightly over 600 million accounts. This is a decline of about 100 million accounts, over 12% in the past six years, or about 2.2% a year. Total checking balances have more than doubled in the same period from $0.945 trillion in 2010 to $2.110 trillion in 2017.
Checking in Transition
Checking accounts are in a transition period. The number of depository accounts is declining from competition with fintech firms such as Walmart, Starbucks, and Apple.
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