Only 3 Years Left for Checks–Are You Prepared?

Lady giving someone a check.

 

Experts predict paper checks will be obsolete by 20211. Is your company prepared?

Millennials and Generation Z are the most likely to make and receive payments by mobile methods. Their excitement for faster electronic payment methods will directly influence payment technology over the coming years. By 2020, 40% of consumers will be born after 19952, leading to the demise of checks shortly thereafter.

Only 14% of Baby Boomers have used a mobile payment platform, compared to 53% of Generation Z. Millennials, a group of highly adaptable consumers, will likely join Generation Z to favor new payment technology. As Gen Zers begin to make buying decisions, the payment space will see a significant shift as younger generations demand a change in the status quo.

Companies without new payment technology will lose out on major market share. Not only by losing current customers for not keeping up in a highly competitive industry, but by also neglecting to capture younger consumers as they begin to make buying decisions.

Does your company have a current plan to move away from paper checks within the next 3 years?

It’s critical for insurance companies to advance with technology so they can meet customer expectations. How will you make this transition without disrupting your day-to-day business or sacrificing employee engagement?

With CommerceVantage® Claims Payments, you can pay your insureds in as little as 30 minutes. The solution helps boost customer satisfaction and employee engagement while lowering Loss Adjustment Expenses.

Commerce Bank has dedicated time and energy to improving processes in the insurance industry. Working with multiple carriers, Commerce built the claims payment solution to help carriers put customers first, without creating a nightmare for adjusters. Talk to one of our insurance payments professionals for more information.

 


Sources:

  1. http://www.digitalcheck.com/old-people-write-checks/
  2. https://www.fastcoexist.com/3045317/what-is-generation-z-and-what-does-it-want
  3. Gramigna, K. (2017, February 22). Know Your Customers: How Different Generations Prefer To Pay. Retrieved from Business.com: https://www.business.com/articles/kristen-gramigna-customer-payments