|Many ebanking and ebilling consumers still receive paper statements|
According to a new white paper by NACHA—The Electronic Payments Association and PayItGreen, nearly 30% to 40% of consumers who receive their financial statements and bills online also receive paper versions.
The study, prepared by Javelin Strategy & Research, finds that this trend, known as “double dipping,” surprisingly exists primarily among Gen Y and Early Adopters. Gen Y consumers are those between the ages of 18 and 32 and Early Adopters are those consumers identifying themselves as the first to try new technology.
“‘Double dippers’ present a number of challenges for financial institutions and billers,” says Jim Van Dyke, president and founder of Javelin Strategy & Research. “By not fully disconnecting from paper bills and statements, ‘double dippers’ waste precious resources and create an unnecessary burden on the environment. Additionally, they weaken financial organizations’ ROI and create inefficiencies by requiring twice the amount of service.”
Fortunately for financial institutions and billers, the study also showed that Gen Y and Early Adopters are more likely to respond positively to messages encouraging a complete transition to paperless. According to the study, nearly 20% of Gen Y consumers simply forgot to turn off paper statements. The study also showed that 41% of Gen Y and 48% of Early Adopters would be receptive to the automatic shut-off of paper statements when signing up for online billing and payments.
“These findings present a significant opportunity for financial institutions and billers,” says Janet Estep, NACHA president and CEO. “Through targeted educational programs and messaging, organizations of all types can counter the ongoing attachment to paper and encourage the adoption of paperless behaviors. By doing so, they can reduce the impact of paper-intensive processes on the environment while maximizing efficiencies.”
To encourage the adoption of online-only behaviors with consumers, the study recommends that financial institutions and billers refocus their efforts to influence the younger, technology-savvy consumers, such as Gen Y and/or Early Adopters. Recommendations include changing out-bound marketing messages and channels to better target Gen Y and/or Early Adopters, and creating appealing content and placing it on websites to attract Gen Y and/or Early Adopters.
[This article was posted on February 22, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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