According to a new whitepaper released by NACHA, the electronic payments association, and PayItGreen, nearly 30% to 40% of consumers who receive their financial statements and bills online also receive paper versions. The study, prepared by Javelin Strategy & Research, finds that this trend, known as ‘double dipping’, surprisingly exists primarily among Gen Y and ‘early adopters’. Gen Y consumers are those between the ages of 18 and 32 and early adopters are those consumers identifying themselves as the first to try new technology.
“‘Double dippers’ present a number of challenges for financial institutions and billers,” said Jim Van Dyke, president and founder of Javelin Strategy & Research. “By not fully disconnecting from paper bills and statements, ‘double dippers’ waste precious resources and create an unnecessary burden on the environment. Additionally, they weaken financial organisations’ ROI [return on investment] and create inefficiencies by requiring twice the amount of service.”
Fortunately for financial institutions and billers, the study also showed that Gen Y and early adopters are more likely to respond positively to messages encouraging a complete transition to paperless. According to the study, nearly 20% of Gen Y consumers simply forgot to turn off paper statements. The study also showed that 41% of Gen Y and 48% of early adopters would be receptive to the automatic shut-off of paper statements when signing up for online billing and payments.
To encourage the adoption of online-only behaviours with consumers, the study recommends that financial institutions and billers refocus their efforts to influence the younger, technology-savvy consumers, such as Gen Y and/or early adopters. Recommendations include changing out-bound marketing messages and channels to better target Gen Y and/or early adopters, and creating appealing content and placing it on websites to attract Gen Y and/or early adopters.
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