Straight Talk — Market direct deposit

It is only about half a year now until the Federal Government stops mailing Social Security checks. By March 1, 2013, nearly all federal benefits are going to be delivered electronically, either to the recipient's local bank account or to a debit card account in Texas. Although the vast majority of Social Security benefit recipients already receive benefits by direct deposit, the looming deadline offers banks a great marketing opportunity to reach out to those still receiving paper checks..It is important that banks make the most of this opportunity because a marketing effort pushing MasterCard's "Direct Express" is well underway. The debit card accounts are hosted by Comerica Bank, based in Dallas. The Federal government is urging benefit recipients still receiving paper checks to set up direct deposit with their bank or to sign up for the debit card. Direct Express does not require the recipient to set up a bank account; the service is mostly free although there are fees for ancillary services..Now is the time for banks to tout the benefits of opening a bank account for direct deposit of their Social Security benefits. Now is the time for banks to explain the benefits of keeping your money local instead of allowing it to be deposited with a bank hundreds or thousands of miles away. Some elderly folks may be intimidated by the prospect of opening an account with a bank, so banks need to do all they can to demonstrate that banking locally is easy and safe. Personal service offered by a local bank should make the decision easy for anyone wrestling with what to do..The U.S. Treasury Department and the Federal Reserve are working together to offer bankers a variety of tools for marketing direct deposit. Check outwww.GoDirect.org for the details. At that web site, you will be able to access information about direct deposit, in addition to the competitive intelligence you will need to compete against the Direct Express option. Be sure to study the section that explains the fees. You will want to be able to explain them to potential customers weighing their options..The Federal government has been migrating people to electronic delivery of funds for some time now, saving the government and taxpayers significant money. Bankers can play a key role in the migration effort as the Go Direct campaign moves into the homestretch. Marketing efforts that demonstrate the advantages of direct deposit into a local bank account will help the remaining check recipients make the right decision.