NCBT

Changes in Consumer Behavior Prompt Introduction of New Type of Checking Account

June 05, 2009

In response to changes in consumer behaviors, NCBT has developed a new type of checking account, which will be rolled out on June 8th, that targets this new evolution of consumer. 

Over the past 10 years, banks have seen more and more customers move into online and electronic banking products.  In addition, as the economic conditions tighten, consumers look for ways to stretch every dollar and make wise choices with their money.  As a result, NCBT has launched a new type of checking account that rewards consumers for these types of behaviors.

Consumers today are more conscious of the cost and want to do their banking in the most convenient and efficient manner possible.  Paying their bills online to save postage.  Managing their account online to monitor their account in real time.  Using ATMs and the web to do their banking on their schedule.  Using a Visa Debit Card to save the cost of printed checks.  Having their payroll check deposited directly into their account to save a trip to the bank.

In the past, most of the premium checking products rewarded customers for maintaining a high balance in their account and doing a minimal number of transactions.  As consumer behaviors changed, this type of account is fast becoming obsolete.  
 
In 2001, only 32.5% of families did their banking online.  The Federal Reserve Board's recent Survey of Consumer Finances showed that 59.7% of all families use the internet for financial information or financial services.  When broken down by age group, the percentage was even higher.

Age of Head of Household    Percentage of Family
Less than 35                              71.9%
35-44                                        70.8
45-54                                        69.1
55-64                                        59.1
65-74                                        40.3
75 or more                                16.5

This growing trend among consumers to do their banking electronically prompted NCBT to evaluate their checking products and determine ways to better meet the changing needs of their customers.

After evaluating the behaviors of their online banking customers, the bank learned that customers used or wanted the following:

• High interest rate
• Visa debit card
• Electronic statements
• Online bill payment services
• Direct deposit
• High ATM usage

Based on this profile, NCBT set out to create an account to meet these needs.  The new account is for customers who use their Visa debit card at least 10 times per month, receive electronic statements, and have at least one automatic draft or direct deposit per month.  Customers with these characteristics will receive a high rate of interest on their checking account, plus they get the benefit of free ATMS that is available to all NCBT customers. 

"Basically, the account rewards customers for doing things they are already doing," said Gary Hood, executive vice president, NCBT.  "We tried to take the changing needs of the customer into consideration in planning for this new product.  The type of person who would benefit from this account is probably already doing their banking online, receiving e-statements and are high users of Visa debit cards.  This just gives them an incentive to do their banking with us."

The new account, which is called Mad Money Checking, will be available at all NCBT branches starting June 1.  As a special promotion during the introductory period, NCBT will pay $100 to customers who open an account at the designated NCBT office on Mad Money Mondays.  People can also register at any NCBT location for a $1,000 cash prize to be given away at the conclusion of the promotion on August 31, 2009.  Details regarding the contest rules or dates and locations of the Mad Money Mondays can be found on http://www.ncbtmadmoney.com/.

North Carolina Bank and Trust (NCBT) operates four locations in Mecklenburg County in North Carolina.  Serving the financial needs of the Charlotte market since 1998, NCBT operates offices in Myers Park, South Park, Cotswald and Mint Hill.  NCBT is a division of SCBT, N.A., a subsidiary of SCBT Financial Corporation, which has assets of approximately $2.8 billion and its stock is traded under the symbol SCBT in the NASDAQ Global Select Market.  More information can be found at http://www.ncbtonline.com/.