5 Key Trends in the Current Checking Landscape
While reviewing the checking account marketing mix in Jan-Jul 2022 as compared to the previous two years, with a lens into channel mix and messaging analysis, these five key trends and findings emerged.
1. 2021 saw the greatest investment from brands.
2021 efforts were abnormally high. This was a result of brands targeting consumers who held onto cash during the pandemic, leading brands to encourage consumers to open a new checking account. Although above pre-pandemic levels, 2022 efforts fluctuated, likely due to a prioritization of savings amidst the changing economic environment.
2. Direct mail was the favored channel among brands.
With pending inflation, brands relied on the trusty ROI of direct mail. Additionally, direct mail allowed brands to emphasize highly coveted cash bonuses and account benefits. In 2022, brands like Bank of America implemented call-to-actions such as “visit branch” or “scan QR code” as a means for consumers to retrieve new offers.
3. Parents were targeted by student account efforts.
Student account marketing focused on building relationships between parents and their children while also teaching smart money habits. Similar to overall checking account strategies, brands like Chase paired cash bonus offers for young bankers with budgeting and credit-building tools.
Gas discounts could appeal to consumers comparing similar products and weighing in the benefits of extra savings. It also creates positive imagery for companies to position themselves as a consultant to help consumers address a problem they care about, as shown in Mintel’s 2022 Insurance Omnichannel Trends.
4. Fintech participation will alter the landscape.
Fintechs upped checking account efforts in 2021 with a strong presence in paid social channels. New investment in technologies set them apart from traditional banks tied with top offers only redeemable virtually, as brick-and-mortar bonus retrieval is not an option. Fintechs can entice consumers to move from traditional banks that previously held their loyalty with competitive bonus offers and higher interest-earning opportunities for checking accounts. With the absence of branches, Fintechs have the flexibility to invest more in products.
5. Brands can differentiate with bundled offers.
As seen with SoFi and Chase, brands can bundle checking and savings account offers with an increased bonus offer. Brands can promote an exclusive cash bonus that exceeds the offering attached to just opening one account. This will become increasingly important as savings account investment is prioritized in the current economic environment. Brands can additionally promote upgrades to entice consumers to open more lucrative accounts. Citibank exemplifies this by offering bonus miles for their AAdvantage customers.
So what’s next? Technology offerings behind new players and brands bundling offers are poised to dominate the checking landscape heading into Q4’22 and 2023.
To find out how Comperemedia data and research can help your brand strategize your checking account marketing campaigns, click here.