73% of Millenials Prefer "Payments" Accounts Over Checking

The American Banker reports today on the survey showing Millennials, the largest age segment today, prefer payments providers like PayPal, Apple and Google over bank checking accounts. How can community and regional banks win with this critical market segment?

The answers are documented in the survey above and the FRB of Philadelphia recent study.  Specifically, community and regional banks should:

• Brand transaction accounts around payments services rather than "checking."  In the day of PayPal, Apple Pay and AliPay, the word checking is down right dowdy.

• Offer no overdraft fees ever.  This is a key objective of Millennials as documented in the FRB of Philadelphia study.

• Provide multiple card payment methods tools for managing security and budgets.  Again the FRB of Philadelphia study documents Millennials grew up using cards not cash.  When they budget, they do not use "cash envelopes" as older consumers do, they use multiple cards as different envelopes.

• Make liquidity online and automated.  Millennials are more likely to click on Lending Club, Lending Key or BillMeLater from PayPal than fill out a bank loan application.

These are the exact benefits of our turn-key PaySound^® program.  It is time to get in the game with Millennials!