Comments on: Is It Time to Rename ‘Checking Accounts?’

By: Editor

Editor — Tue, 15 Dec 2009 17:24:48 +0000

Thanks for the link Christopher. I remember there were discussions occurring around the web a while ago, but couldn’t remember where. I like the suggestion of “Payment Account” from the link as well — another interesting option.

By: Christopher Morris

Christopher Morris — Tue, 15 Dec 2009 17:20:53 +0000

Interesting discussion – We brought the same issue up a few years ago on the YES CU blog here:

http://yessummit.blogspot.com/2008/02/what-is-checking-account.html

I still like the term “spending account” instead of checking – “savings account” still makes sense for saving… a nice coupling.

By: MZ

MZ — Sat, 12 Dec 2009 16:45:02 +0000

This is a great discussion. I really like PNC’s idea. I gravitate toward “Cash Account,” but I think that no matter what the industry does, consumers will use their own terms and the generic “Bank Account” is not going away anytime soon.

By: nick

nick — Wed, 09 Dec 2009 15:26:29 +0000

Very interesting concept! I think the term ‘bank account’ will be around whether we like it or not. As far as a new name for checking accounts…i like the suggestion above ‘virtual accounts’.

By: Nathan Tothrow

Nathan Tothrow — Mon, 07 Dec 2009 15:24:18 +0000

May be. But there’s plenty of precedence for products that once were free and now are tagged with a premuim price. Water is just one. But it had to be brightly repackaged and sharply marketed to earn the price that Evian charged!

By: Editor

Editor — Mon, 07 Dec 2009 14:57:20 +0000

Nathan, you raise a good question: If financial institutions need to start charging for checking services, is that the right time to change names? If people were accustomed to getting X for free, why not change the name to Y if you have to start charging for it?

By: Editor

Editor — Mon, 07 Dec 2009 14:55:38 +0000

Thanks for the comment Ian. You make some really great points.

By: Ian

Ian — Mon, 07 Dec 2009 14:36:24 +0000

I think the downside to this rebranding would be the loss of the instant recognition that consumers have for “checking accounts.” If an ad, disclosure, or CSR mentions a “checking account” consumers instantly understand the subject of the discussion, and most will understand how the product functions. When we call a DDA product a “spending account”, “cash account”, or any other trendy new name, consumers will generally require more of an explanation as to what the product actually is than if we were to say “checking account.” Now, this is fine if the customer is face to face with a CSR, but in advertising when we have limited time to convey our message this may not be the most efficient manner to draw new customers to our institutions.

The term “checking” is so deeply rooted in our industry, and in consumer consciences, that I do not think it will ever go away permanently (albeit fun to romanticize about)…I think that in the decades to come, the term “checking account” will clearly not represent consumer behavior, but it will still carry that instant product recognition which makes the name so valuable.

I think we need to focus on what innovation in our industry really is and what it is not…

Some people above provided great examples of true innovation, while others just jumped on the naming bandwagon (no offence intended)… Even a consumer sweep account is nothing new, these products have existed for years.

PNC is a great example of product innovation….They did not just simply put a new name on the same product as many of us in the industry tend to do. They developed a new philosophy about how bank accounts can be used by consumers and they cleanly integrated it into the mobile landscape…IMHO, they missed the mark on the product branding as its website content is clearly focused on a young, teenager-esk, demographic. I think that if this product were packaged in a more mature manner, it would appeal to a much wider audience…Can that hokey Punch the Pig game be the first item to go?…We don’t need to dumb down banking to attract Gen Y, many of us are quite savvy.

Interesting item of discussion. Thanks!

By: Nathan Tothrow

Nathan Tothrow — Mon, 07 Dec 2009 13:57:42 +0000

Until we can design a product that is fundamentally different in the consumer’s mind than the existing checking product, it will always be “checking” in a different wrapper. It will be difficult to rebrand an account that offers unlimited demand drafts as anything but checking. And it would be even more difficult to charge more for it, which is something we’re all going to have to find a way to do.

By: Mary

Mary — Fri, 04 Dec 2009 18:34:51 +0000

spend***

By: Mary

Mary — Fri, 04 Dec 2009 18:34:35 +0000

Um hello! “Spending Accounts” is where its at! For money you intend to save you get a Savings Account – for money you intend to sepnd you get a Spending Acount…. !!

By: Editor

Editor — Thu, 03 Dec 2009 18:32:50 +0000

That’s an interesting idea, Bill. Virgin Money rolled out a dual-purpose debit/credit card a while ago, which sparks the question, “Is this more reflective of how people relate to their money?” Perhaps consumers (subconsciously) wonder, “Why do I have to have all these different types of accounts?” Realistically, a single account isn’t a solution that’s appropriate for everyone; some people will always appreciate being able to segregate their spending from their borrowing. But I imagine that a measurable segment of financial consumers would find such a product intriguing. A lot of it hinges on how it would be structured.

By: When the hand that feeds you starts feeding themselves | The Life and Times of a Credit Union Employee

Thu, 03 Dec 2009 18:31:48 +0000

[...] to differentiate their free checking accounts from one another? I’m sorry, is it a checking account, share draft account, or a spending account? Is your checking account free-er than your [...]

By: Bill Lantzy

Bill Lantzy — Thu, 03 Dec 2009 14:57:08 +0000

Has anyone looke into how the "One Account" as described in Filene's i3 program might fit into this question? Not only could it be a great wealth management tool, but financial institutions would benefit from additional loan penetration and activation. It is kind of like using a HELOC to pay for everything and applying you entire pay against it...as long as you do not overspend, you payoff loans quicker, save money on interest. This is a gross oversimplification, but I think it may have a role in this type of product development scheme.

By: Madeline Anderson

Madeline Anderson — Thu, 03 Dec 2009 14:53:49 +0000

We’re in the process of developing a new type of checking/share draft/savings account that revolves around savings, with automatic sweeps. No name yet, but definitely a visit to the drawing board will be necessary. That said, I personally like the spend account, save account, and my personal favorite, “mad money” account!