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OBJECTIVE:
Decrease checking account expense by moving
transactions into more efficient delivery channels
such as Point-Of-Sales debit cards. This
tactic can be used to find account holders who are not
using their debit card at all (or perhaps were never
issued one), or are under-using it. Debit_MonthlyAvg
shows the
annualized
monthly average transaction count.
This query will find all checking accounts that have
no debit card usage and the age of the account holder
is at least 18 but not older than 50: 
In
this example, 998 accounts in 945 households were
found.
If
you automatically issue a debit card to all checking
account holders, you might wish to find all debit card
holders who use their debit card occasionally, or not
at all:
IDEAS:
-
Offer
incentives for debit card use of at least 5
transactions per month.
-
Offer
usage incentives AND reward the debit card holder
for using Swipe & Sign authorization. This will
increase Debit Card Interchange income.
-
If
your institution does not offer debit cards to all
new checking accounts, reconsider. The
industry average loss rate is very low at 1/2 of
1%.
-
Fee
for swipe & PIN (.50 per trans) but not charge
for Swipe & Sign.
CAVEATS:
Issuing to dormant accounts
may not be a good idea since a debit card in and of itself
does not typically increase account activity... so why
incur the expense involved in preparing and mailing a
debit card? Check
NSF counts. You may not wish to issue a debit
card to a high NSF household since it may lead to an
increased number of overdrafts.
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