Bank On Data Metrics

Account Opening Metrics

Accounts Opened

This metric refers to the number of Bank On-certified accounts opened since the product was available at the institution. Reporting on the running total of certified accounts opened provides the Bank On community with numbers that support and identify how the movement is scaling its impact through Bank On National Account certification, as well as the general appeal of products that meet the certification standards. Beyond the national movement, this metric also provides data locally and regionally to demonstrate local successes. The number of opened Bank On-certified accounts can serve as a benchmark for local coalition efforts to help residents open accounts or move to safer, more affordable accounts. Accurate and consistent account-opening metrics can also be useful for gaining government and philanthropic support for banking access efforts and helping coalitions attract new financial institutions and social service partners.

Accounts Newly Opened

This metric refers to the number of Bank On-certified accounts opened within the reporting year. Tracking the number of these accounts provides coalitions with data to assess the impact from their year’s efforts and to study how this number varies by city, region or ZIP code.

Number of New Account Customers New to the Institution

This metric is the number of Bank On-certified accounts opened by individuals who were not account holders on the day of account opening. It helps demonstrate to financial institutions how an account is attracting a new customer base, often key to the longer-term sustainability of such accounts. While this metric does not capture whether a customer was unbanked or underbanked prior to opening a Bank On-certified account, it may serve as an indicator for previously unbanked and underbanked and/or new customers opening the accounts—data that are otherwise difficult to track. The percentage of new accounts opened is calculated by dividing the number of accounts opened by individuals who weren’t deposit account holders by the total number of accounts opened in the same year.

Number of Accounts Newly Closed

This metric represents the total number of certified accounts closed for any reason during the reporting period. The account attrition rate is a key part of the equation in assessing the vitality of a product. For example, a low closure rate could help demonstrate the vitality and usage of accounts, and financial institutions’ internal comparisons of the rate with that of other accounts in their portfolios may prove useful. The percentage of new accounts closed is calculated by dividing number of accounts closed in that year by the total number of accounts that were open by the end of the year.

Number of Accounts during the Reporting Year

This metric represents the total number of accounts open at any point during the reporting year and captures the entire universe of Bank On-certified accounts open during a year. The number of individual accounts that were open and potentially active at any point during the reporting year is used as the basis for estimating the percentage of account holders using direct deposit and online banking, along with other key metrics. The number of open accounts helps show a complete picture of account usage across all accounts that were being used during the reporting year.

Account Usage and Consistency Metrics

Direct Deposit

This metric represents the total number of accounts with any ACH deposits made in the reporting year. The Bank On National Account Standards require that account holders have free deposit capability at a branch, an ATM or through direct deposit. Understanding direct deposit usage and frequency helps demonstrate the importance of this requirement. These metrics can be used to indicate whether account holders are consistently using the account’s full functionality—such as free direct deposit of paychecks—without turning to alternative financial services like check-cashing businesses that charge high fees. Direct deposit usage can also show the continuity of the account, and often indicates that account holders will keep it, since they are using it for their main transactions. The percentage of account holders using direct deposit is calculated in the report by dividing the total number of accounts with any ACH deposit by the total number of accounts that were open by the end of that year.

Debit Transactions

• Number of account holders making a debit transaction: The number of account holders who make a debit transaction through online or point-of-sale (POS) purchases in the reporting year
• Number of debit transactions per month
• Value of debit transactions per month

These metrics demonstrate how consumers are using products for everyday transactions and how account holders are interacting with the mainstream noncash economy. Tracking this usage also can help financial institutions further identify product sustainability and demand by helping show the amount of account usage.

These debit metrics represent a primary way that most people use banking accounts. The number of accounts making debit transactions provides information about the spending habits of the account holders, specifically on noncash transactions and purchases. The data also help illustrate how Bank On account holders are generating interchange revenue for financial institutions. In addition, cross-referencing the number of accounts making debit transactions and the total number of debit transactions monthly with the dollar value of these transactions can provide more detail on the frequency and value of average debit transactions. These transactions have the potential to show that for some financial institutions, these products are truly profitable and sustainable while also meeting consumer needs. The percentage of account holders making debit transactions is calculated by dividing the number of accounts used for any debit transaction by the total number of accounts open by the end of that year. The average debit amount is calculated by dividing the total dollar value of all debit transactions by the total number of accounts used for any debit transaction.

Withdrawals

• Number of accounts making withdrawals: The number of accounts used for any form of withdrawal within the reporting year
• Number of withdrawals per month
• Value of withdrawals per month

Tracking withdrawals is crucial to understanding account usage and the ways customers access their money using their Bank On-certified accounts. Withdrawal types may include ATM usage, teller withdrawal or transfers to another account. The total number of withdrawals made, as well as their value, helps identify the amount of money that customers are regularly obtaining, how often and how they are withdrawing their money.

Withdrawal behavior is an indicator of safe banking and money management. For example, all certified Bank On accounts are required to offer free, unrestricted in-network ATM and branch withdrawals, with no overdraft or nonsufficient fees (NSF). Thus, account holders could make smaller, regular cash withdrawals as needed, rather than concentrating them into a few large withdrawals to avoid fees. This withdrawal behavior would indicate that account holders are carrying cash in smaller amounts and using their accounts as money management tools, rather than for one-time lump-sum withdrawals. The percentage of account holders making withdrawals is calculated by dividing the number of accounts used for any withdrawal by the total number of accounts open by the end of that year.

Deposits

• Number of account holders making deposits: The number of accounts making any non-ACH deposit by check or cash
• Number of deposits per month
• Value of deposits per month

Tracking deposits helps measure a product’s effectiveness in helping account holders keep all their earnings by being able to deposit money without fees and without using a check casher or other alternative financial service.

Similar to withdrawals, deposits are also an indicator of account usage. Additionally, the collective value of these deposits represents the size of the market of people using Bank On-certified accounts, which can help make the case for other financial institutions to offer accounts that meet Bank On National Account Standards. In the report, the percentage of account holders making deposits is calculated by dividing the number of accounts with any non-ACH deposit by the total number of accounts open by the end of that year. The average value of deposits is calculated by dividing the total dollar value of all non-ACH deposits by the total number of non-ACH deposits.

Average Monthly Balance

This metric represents the average monthly balance of all accounts currently open at each financial institution. In addition to account usage, account balances are critical indicators for financial institutions in assessing the behavior of a new account holder. The data can serve as a general indicator of account usage and activity and provide insight about the income level of the account’s customer base. The average monthly balance per account is calculated by dividing the sum of the average month-end balance by the number of accounts open by the end of that year.

Online Access Metrics

Online Bill Pay

• Number of accounts using online bill pay
• Number of online bill pay transactions per month
• Value of online bill pay transactions per month

Online bill pay usage metrics not only display robust account usage but also help make the case for the importance of this functionality. For example, financial institutions with high money order usage rates and low bill pay takeup might seek to make product changes that meet customer needs and lead to cost savings through greater bill pay capabilities.

Tracking the total number of accounts used for bill pay in the reporting year, as well as the monthly number and value of online bill payments, demonstrates how account holders are managing payments and paying bills. It shows how, and if, customers are fully leveraging the benefits and features of their banking products. The percentage of account holders using bill pay is calculated by dividing the number of accounts using bill pay by the total number of accounts open by the end of that year.

Peer-to-Peer (P2P) Transactions

• Number of accounts used for P2P transactions
• Number of P2P transactions per month
• Value of P2P transactions per month

Usage of P2P capabilities—which allow customers to transfer and receive money and pay and be paid by someone through their accounts—demonstrates how they are using the accounts for a full range of financial needs.

As financial technology advances, P2P capabilities are seen as critical functionality for consumers of all ages. Additionally, financial institutions often obtain interchange revenue from P2P transactions. Thus, tracking P2P capabilities and their usage also supports further analysis of how payments outside the checking systems work and benefit financial institutions. The percentage of account holders using P2P is calculated by dividing the number of accounts using P2P functionality by the total number of accounts open by the end of that year.

Number of Digitally Active Accounts

The reporting system also documents the total number of customers who are digitally active, as defined by the financial institution, to assess the number of account holders who have online access and use it for transactions. An often-articulated concern from financial institutions is that account holders will have a high demand for in-branch customer assistance. Digitally active accounts indicate that customers can leverage online functionality, such as to check account balances or deposit checks, lessening the burden on bank branches. These data can help stakeholders understand the value of, and demand for, online access. Similarly, tracking digitally active accounts provides financial institutions with a high-level view of how customers with Bank On-certified products embrace and use nonbranch features that come with their new banking relationships. The percentage of digitally active account holders is calculated by dividing the number of customers who are digitally active, as defined by the reporting institution, by the total number of accounts open by the end of that year.