If your bank or credit union offers more than two different checking accounts, you may want to rethink your product line.

 

As a bank marketer for over 30 years, I spent a ton of my time on checking accounts.

 

True, I also had savings accounts, CDs, auto loans, credit cards, and equity lines and mortgage loans to consider.

 

But my primary focus was always on checking accounts.

 

When I first started in banking in the early 70’s, most consumers depended on banks for all the products listed above.  Sure, there were a few loan companies like HFC and Associates, but they were considered lenders of last resort for folks unable to get a bank loan.

 

Back then, as now, consumers identify “my bank” as they place where they have their personal checking account.  While not a glamorous product, a checking account remains the most important financial product for most consumers.  It’s a necessity.  It’s how money is moved between people, businesses, utilities, and government entities.

 

It’s the ubiquitous checking account that is responsible for the velocity of money.

 

But things have changed in the banking business.

 

Over the past 40 years, banks and credit unions have become less important to many consumers.  This is the result of all the non-bank businesses offering credit cards, auto loans, mortgage loans, equity lines and loans, mutual funds, and even checking accounts linked to investment accounts.

 

Fortunately for the banks and credit unions, consumers still need them for their personal checking accounts.  I call this the banks’ last remaining franchise – one they should hold on to for dear life.

 

This being said, I also believe it is important that banks and credit unions not offer consumers too many checking account choices.  In fact, it is my opinion that two checking account choices comprise the ideal product mix.

 

The two choices are free checking and interest or premium checking.  Basically, these are the only two mutually-exclusive product choices.

 

And believe it or not, at least two credit unions offer only one checking product – State Employees Credit Union and Pentagon Federal Credit Union (PenFed).  Most shocking to me was discovering that Bank of America now offers only two checking account choices…excluding student accounts.  The same is true for Boeing Employees Credit Union.

 

If your bank or credit union currently offers more than two checking account choices, you should consider a thorough review of your checking product line.

 

In the ACTON Marketing December newsletter, you’ll discover seven reasons why you should re-evaluate your checking account product line.  Included are the paradox of choice, feature fatigue, and the high cost of attrition.

 

Your free copy of the December issue is available at http://www.actonfs.com/ContactUs.aspx.  Past issues of the newsletter are available, free at http://www.actonfs.com/Newsletter.aspx.

 

Give the December issue a read…it might just change the way you think about your checking account product line.