The Internet has killed traditional checking
With the growth of mobile and online banking, using pen and paper to write a check seems more outdated every day.
This post comes from Casey Bond at partner site GoBankingRates.com.
How often do you write a personal check?
If you’re like many of the respondents in the latest GoBankingRates poll, never.
With the increasing availability of mobile and online banking options, traditional checking account products like paper personal checks are falling out of usage.
Online bill pay, peer-to-peer payment apps and other, more convenient ways of moving money are taking their place.
Banking customers ditch personal checks
In a 2014 poll, GoBankingRates asked how often banking customers wrote personal checks.
The most common response was "never," with 37.8 percent. That was followed by "several times a month" (25.6 percent), "a few times a year" (20.5 percent) and "once a month" (16.1 percent).
Checkbook study highlights
Men are more likely to never write checks than women.
Every single respondent polled making $150,000 and up reported writing checks several times a month.
The youngest demographic polled, 18-24, were most likely to never write checks.
Older respondents were more likely to write checks several times a month.
Western respondents were more likely to never write checks than respondents in any other region.
Rural respondents were more likely to write checks several times a month than urban and suburban respondents.
"Increased convenience and adoption of online banking technologies are the largest factors reducing the number of checks being written today," Kyle Kolsky, SVP Head of Consumer Deposits at Bank of Internet, told GOBankingRates.
"Consumers are becoming more tech-savvy and realize that online banking is more convenient and secure than using paper checks that have the potential to expose your personal information, including your account number, to others," Kolsky said. "Younger consumers rely on debit card transactions or person-to-person money transfer services and may never write a check, similar to consumer behavior in Europe."
Indeed, online payment systems have become ubiquitous among banking customers. The Financial Brand reported in October 2013 that research by Fiserv found 60 percent of respondents make a payment via laptop or desktop computer at least once a month, while 30 percent have made a payment using a mobile phone and 22 percent with a tablet.
"Consumers are increasingly looking for new ways to manage their bills, which points to the need for continued innovation by service providers across the payments industry," said David Shapiro, senior vice president of payments at Western Union, in a statement regarding Western Union’s 2013 Money Mindset Index.
"Less than one-third of payments occur via non-electronic channels, and consumers continue to use a mix of payment methods that provide enhanced choice, flexibility, control and convenience around their lifestyles and cash flow," he explained.
- Of those who never write checks, 43.4 percent were male, and 32.7 percent were female, a spread of more than 10 points.
- Of those who write checks several times a month, 21.7 percent were male, while 29.2 percent were female, a spread of more than 8 points.
- Those making between $100,000 and $149,999 and those making between $0 and $24,999 were most likely to never write checks, at 47.4 percent and 46.3 percent, respectively.
- 100 percent of those making $150,000 or more write checks several times a month.
- 61.2 percent of respondents who never write checks were between the ages of 18 and 24 (the largest age group represented), while just 25.7 percent of respondents 55-64 and 27.6 percent of respondents 65 and up never write checks.
- 24.1 percent of respondents who write checks once a month were between the ages of 25 and 34, the largest age group represented, compared with 10.7 percent of respondents aged 18-24 and 11.5 percent of respondents aged 35-44 who write checks monthly.
- The second most popular response, writing checks "several times a month," was most commonly selected by adults aged 55-64, with 38.5 percent. Trailing closely behind were adults aged 65 and up, with 36.5 percent choosing this option. The least likely to write checks several times a month were adults aged 18 to 24, at 11.7 percent.
Polling was conducted through Google Consumer Surveys from February 19 – 21, 2014 for a total of 1,501 responses with a RMSE score of 2.0 percent.
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This is a very flawed conclusion on the future of check writing. Using the info in your Bar Chart
CHECK WRITING IS ALIVE AND WELL. Your title should say that. Based on your age band:
1. 72% of 65+ still write checks,
2. 74% of 55 - 64 still write checks,
3. 68% of 45 - 54 still write checks,
4. 53% of 33 - 44 still write checks,
5. 65% of 23 - 32 still write checks,
6. 39% of 18 - 24 still write checks.
Let's be generous in your favor and say 60% of all people over the age 23 write checks it stand to reason that your Title should read " Checking is alive and well "
Electronically paying bills has saved me a lot of time and money (writing checks, envelopes, stamps, etc.) but I will always keep my checkbook for services that don't take debit or credit cards (school services, girl scout cookies or boy scout popcorn, my vet, my babysitter, some personal services, etc).
I will keep doing both.
Checks for me!
I have complete control, no hackers on my accounts.
I have been hacked on credit cards and they caught it.
So easy to steal money on-line today!
not so fast bankers......I do not have cell service in my area and internet is not dependable...I
will continue to write checks until they pry the pen out of my cold dead hands,,,,,,
I still pay my bills with checks and will continue to do so as Tech can always be Hacked and your personal info Stolen!
In fact 2 days ago I asked my neighbor if he was being charged the excess service fee on Electric Bills and he did not know for all of his bills are electrically/IT paid.
He did check and confirmed it but he also spent over an hour checking to find that additional charge!
When I pay my bills by check I have a record of them something that he does not have easily to his access!
For those young and so very tech savvy and addicted they don't yet have a clue relative to self protection or to function w/o tech and I find this fact of life Upsetting at best. WHY Life is found outside of tech which is not a real life but a computer generated wanted life!
The reason older adults write checks "several times a month" or "once a month" is that they have monthly bills to pay. Sounds obvious. The reason a smaller percentage of 18 - 24 year olds write checks once or several times a month is that fewer of them are living independently and paying monthly bills like rent, utilities etc.
While it is also true that younger people are more likely to use electronic banking, this survey doesn't seem to have factored in the life-stage differences that would also skew the responses. The survey would be more valid if it surveyed people of different age groups who actually pay monthly bills.
The Data Brokers: Selling Your Personal Information
60 Minutes March 09, 2014
I work with computers and programming and while you may believe banking on-line is safe, it isn't fail-safe. Even the most secure system can be hacked.
One aggressive virus in our infrastructure can bring down the entire system we have erected leaving us reeling for decades. We are attacked hundreds of times per day and we must be right in our response 100% of the time, the attackers need only be successful ONCE, and we are done for.
Let us not forget, EVERYTHING is done over the internet now. Energy delivery to include electricity, gasoline and heating fuels, food deliveries, banking, you name it and it is reliant on a safe and SECURE internet, which does not exist. US companies are hacked and property stolen thousands of times each year. What will the terrorist nation attack, and when???
Use technology at your own peril, and do not whine and complain when the system comes down around your neck.
Can you spell p-a-p-e-r--t-r-a-i-l ??
Yer dang strait...I still need undiputable PROOF that they got it and cashed it.
Especially when mailing payments.
On-line it's too damn easy for them to say...''uh, we don't see that payment.'' and what proof do you have ?
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