Are checking accounts going away?
Many banks continue to make it difficult to maintain a checking account, requiring all e-banking customers to maintain large minimum balances to avoid fees. More than five million Millennials don’t want a checking account at all, preferring to use electronic payments.
The decline of the traditional checking account has also been substantiated by the FDIC which estimates that roughly 8 million households don't have a bank account, and another 24 million households are underbanked.
According to George Mavrantzas, Vice President of Strategy and Thought Leadership at ADP, "Many people, especially younger workers, don't want to set up a bank account. They would rather have something attached to their mobile device and aren’t interested in ever visiting a physical bank branch."
Knowing this, it has become very important for companies to start offering alternative payroll options to their employees. Could paycards be part of the solution? To delve into this critical issue, go to:
Amy Kovar, Senior Director, ADP B2B Payments Marketing
