Simplii x Direct Deposit Remover User Research
Strategic Research for Financial Product
In the FY2024, Simplii Financial has observed a trend of new customers opening chequing accounts through direct deposit promotions, then removing their direct deposit shortly after receiving the reward.
This study evaluates the effectiveness of Simplii Financial’s direct deposit promotions, aiming to understand customer motivations, barriers to retention, and ways to convert reward-driven signups into lasting banking relationships.
ROLE
User Researcher
TIMELINE
4 Weeks | May 2025
Industry
Digital Banking
METHODOLOGY
Survey
STUDY OVERVIEW.
Direct deposit is crucial for banks because it provides a steady stream of deposits, which are the lifeblood of a bank's operations. It also streamlines the payment process, reducing costs and improving efficiency for both the bank and its customers.
Over the past year, Simplii Financial has seen many new customers open chequing accounts to access direct deposit promotions, only to withdraw their deposits soon after receiving the reward.
This behavior leads to inconsistent account funding and raises concerns about customer retention and the long-term use of the chequing account. This project has used a mixed-method research approach to explore why customers remove direct deposit after receiving the new client offer.
RESEARCH Assumptions.
The 4 main assumptions of the study are:
Irregular Income Sources
Reward-Driven Behavior
Negative Banking Experience
Preference for Consolidation
Research Method.
Survey
Sample Size: 356 Simplii clients
Participant recruiting platform run through Alida
Participant Criteria.
Current Simplii clients who opened a chequing account in the last 12 months, and received a New client reward
Individuals who have not previously participated in any Insider Program surveys in the past 4 months
PROCESS.
RESULTS.
Assumption Validation 1:
Irregular Income Sources: Changes in the client job status or consistency of income
Key Findings
More than 81% of respondents have a stable income source, suggesting that disengagement from direct deposit is not primarily due to income irregularity.
Assumption Validation 2:
Reward-Driven Behavior: Clients attracted by cash rewards often leave after meeting promo requirements
Assumption Validation 2:
Reward-Driven Behavior: Clients attracted by cash rewards often leave after meeting promo requirements
Key Findings
Better Offers from Competitors (50%)
Most respondents moved their direct deposit to banks offering better cash rewards or higher interest rates, showing that new client offers work, but long-term retention requires ongoing value
Banking Preference (29%)
Many respondents prefer to simplify banking by consolidating services in one place
Changes in Employment Status (12%)
Some respondents removed direct deposit from Simplii because of changes in their job situation—like losing a job, switching to an employer, or going on leave
Key Findings
14% of respondents use Simplii Financial as their primary account, while 48.3% use a Big 5 Bank, and 38% use other banks
Most customers (60%) intend to keep their account open, but not as their primary banking option
Around 60% of the customers use their Simplii chequing account at least once a month, only 4% of the users have never made transactions on their chequing accounts
Most users (71%) still use their Simplii chequing account occasionally, 17% use it regularly without direct deposit, and only 12% have stopped using it altogether compared to one month ago.
NEXT STEP.
After summarizing the results of the study, I compiled recommendations for next steps for the Product team to consider.
