Google+ Consumer Psyche: Paper Statements vs E-statements


Friday, July 25, 2008

Paper Statements vs E-statements

There was a discussion in today's class about the acceptance of paper statements of credit cards vs e-statements. An argument was that the e-statements are not that inviting as customers prefer paper statements and think the bank is going to goof up and hence they need to be ready.

A bad experience may cause you to take extra caution and hence the person ends up asking for paper statements to ensure that there is no future flaw. The sense of security and 'I am ready' feel takes over.

It happened to me once. I first accident I had ended with my palms injured and it took a long time for them to heal. The next time I met with the accident my hands automatically went up ad ended without injuring them. I see this as a innate behaviour of the human mind, may be a part of the defence mechanism.

Once smitten twice shy?


Rahul said...

hii tiger...with the dismal pc pentration in India, a complete e-statement format in the country is still a few years away. thats the reason you observe providing added incentives to customers to switch to e-statements. moreover it costs a bank anywhere between Rs18-Rs22 to send you a paper statement. The same for an e-statement is around 40p. You see the reason why banks love e-statements??

Unknown said...

Hi Rahul,

The cost fr the paper statement is 2.50 Rs and the e-statement is .01 paise. But yes what you said is true and its a long time away.


Rahul said...

Hii Tiger...when i was working with HSBC about an year back, the data we had showed that the cost of a paper statement landed for the bank between Rs18 and Rs22 whereas the cost of e-statement was around 40p or so. But i'm glad that we agree on the more important point that the e-way is still far away.

Happy Blogging..