The growth of alternative banking services has exploded in the last decade.  When the history of non-traditional banking in the early 21st century is written, expect its increased use to be tied to its adoption by millennials.  Young adults aged 18 to 34.

A new survey conducted by Think Finance and reported by USA Today, found the following results.  Although 92% of those surveyed use a bank, they reported heavy usage of non-traditional banking products.  45% said that they have used other products such as payday loans, prepaid cards, check cashing services or pawn shops.

So why do they do it?  Convenience.

"It's flexibility and controllability that's really important for Millennials," says Ken Rees, president and CEO of Think Finance. "Banks don't have great products for people who need short-term credit. They're not really set up for that."

But that's not all the survey revealed.  Millennials like the predictability of alternative banking charges.

The Think Finance survey revealed that Millennials don't seem to mind. Nearly a quarter cited fewer fees and 13% cited more predictable fees as reasons for using alternative products, though convenience and better hours than banks won out over both of those as the top reasons.

"With non-bank products...the fees are very, very easy to understand," Rees says. "The reputations' that banks have is that it's a gotcha."

According to another survey, this one by Bankrate reveals that the percentage of free checking accounts has plummeted to 39% currently down from 76% in 2009.

The logic of using alternative banking tools seems to be that if a consumer has to pay fees anyway, why not pay fees that you understand and can predict, even if they are higher. 
There is a lesson here for Payday Loan Affiliate Marketers - targeting your marketing messages to millennials make good business sense.

Interesting developments indeed.