Last summer, I posted a summary of the trends we were seeing at the time in our initial funding transactions, and I've been meaning to follow up with an update since then.
So this morning I took a look at our activity during the month of August '08, and found the following:
- When given a choice, 66% of applicants funded by credit card (34% by ACH)
- Average ACH funding was $5,031.77
- Average Credit/Debit funding was 469.14
Interestingly, compared to the stats from last summer, a few things have changed.
First of all, credit and debit cards are becoming more popular as a funding method, moving from 58% last summer to 66% now. At two thirds of all transactions, this has to be considered an overwhelming consumer preference that cannot be ignored.
Secondly, the average ACH transaction size has come down significantly ($10,320 down to $5,031), probably reflecting the general shift away from direct bank models focused on high yield, high balance accounts over the past year (although we have recently seen a resurgence as bank liquidity has become harder to come by). Backing up that assertion is the fact that credit card transactions, which are not typically used to fund high yield accounts given the variable costs involved, saw little change in their average size ($435 up to $469).
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