KQ Article

Checks are a convenient form of transaction, and have been for nearly 100 years. Deluxe has been printing checks for just as long, and through the years, we have introduced many innovations resulting in greater fee income, ease of management and satisfied account holders. Changes to the payment and banking landscape are now happening more rapidly than ever, which is why we set out to learn exactly what today’s financial institutions and their consumers value most in a checking program.

To get some answers, Deluxe partnered with research firms to survey consumers and financial institutions from across the country, including banks and credit unions, large and small, in both urban and rural areas. We did so as part of a co-creation approach, defined as “an active, creative and social process, based on collaboration between producers and users, that is initiated by the firm to generate value for customers” (Co-creation: new pathways to value, Promise Corporation/LSE Enterprise, 2009).

And who better to educate us than those who deal with checking products on a daily basis?

We began our co-creation work by surveying 1,300 consumers online, followed by conducting 160 in-depth interviews with both check program decision-makers and banking front-line staff. The research included working sessions, followed by in-field ethnographic research and focus groups to further refine our findings. We visited countless branches and offices to closely observe common challenges related to checking programs, all in effort to understand exactly where value could be added.

Here’s what we asked your fellow banking professionals:

• How can check ordering best fit into your process?
• How can check ordering further your broader business objectives?
• What kind of opportunities could enhanced reports identify?

While executives and front-line personnel offered similar responses, how their perspectives and priorities differed was perhaps the most revealing.

Banking executive insights
“I want clear reports that drive performance.”

Our discussions made it clear those executives responsible for check programs want powerful reporting that identifies opportunities to improve. The reporting must be clear and user-friendly. Ultimately, reports need to inform decisions that drive greater program performance.

However, the decision-makers we interviewed also made it clear that ideas do not come from reports alone. Executives value partnerships with third-party experts, as a means of providing fresh outsider perspectives for recommending program enhancements.

The desire for clear, actionable information was further reinforced by executive attitudes regarding pricing. Almost unanimously, they prefer straightforward, wholesale pricing. No smoke, no mirrors.

Front-line personnel insights
“Make it simple. Satisfy my account holder.”

The front-line employees we spoke to emphasized process — specifically, that the check-ordering process must complement the process of opening an account. It must be efficient for the banker and easy for the account holder.

An efficient process gives front-line personnel the opportunity to engage the account holder. While re-orders can be online or over the phone, front-line staff felt that it is important for them to place the original consumer check order themselves.

Most front-line bankers interviewed felt that the current catalog is “too much,” especially given everything else involved with opening an account. The point-of-sale material for checks needs to be easy and feature only the most popular check design options. In fact, many front-line personnel expressed their preference for a “flash card” format for showing consumers their check options. However, some customization is important. Which checks are shown should be chosen based on the demographics of each institution.

When it comes to pricing, front-line staff and executives are on the same page. Retail pricing for checks should be fair and straightforward, so that bankers can confidently and immediately provide a quote.

Consumer insights
“I want a check design that is right for me, and I need to manage a greater variety of transactions.”

While account holders continue to prefer diverse check designs, our research found that a mix of 15 check designs provides the right level of choice. The key driver is not quantity of choices, but in finding a design that’s “right for me.”

The research also yielded important insights into how consumers actually encountered check design options in the real world. The majority of consumers find out about check design options via check box inserts or through online ordering channels.

Naturally, the check register also plays an important role in the consumer experience. Consumers like and use their registers — not just for checks, but also for recording all types of transactions on their checking account, such as ATM, debit card and online activity.

Learnings from this co-creation process will manifest themselves in an innovative new checking program that Deluxe will unveil later this year. With this introduction, paper checks will be sleeker, smarter and more user-friendly for consumers — and more profitable for you.

_{© 2012 Deluxe Enterprise Operations, Inc.}