Two thousand is the largest banking premium I’ve ever seen, although Chase’s out-of-pocket costs are probably less than $500. The offer was made last week via email (see first screenshot) to existing business-banking customers not already enrolled in Chase Quick Deposit, a scanner-based remote check-deposit service.
From: Chase Bank
To: Business Banking clients
Date: 10 June 2010 (1 PM)
Offer: Two years of free remote deposit services (Chase Quick Deposit), normally $50/mo, plus the $855 Panini 50-50 business-class scanner to power it. Total retail value = $2,055
— Users must deposit at least 10 checks per month to maintain fee-free service
— New Quick Deposit users only; not valid for current or previous users
— $500 cancellation fee if discontinued within 12 months
— Offer good through July 31, 2010
Notes: This offer does not appear to be available to the general public. On the bank’s website, the current offer is a free scanner with a 2-year contract at $50/mo.
Analysis: It’s definitely attention-getting and will drive new remote-deposit business. But I’m a bit surprised Chase is giving away both the razor and the blades (see note 1). Perhaps the bank is testing different offers. But it will be two years before Chase finds out what percentage of its users convert to paying customers. Of course, they are also banking on an account-retention lift to repay the significant cost of the offer.
Email from Chase offering free remote deposit services (10 June 2010, 1 PM)
Users accepting the offer must first log in to their account to enroll
1. Offer made to a single-service (DDA) small business checking client converted from WaMu.
2. For more info, see Online Banking Report: Micro- and Small Business Online Banking (published Oct. 2009)