Not Every Checking Account Tells the Story
- Anne Legg
- 22 hours ago
- 2 min read
Over the past few weeks, we've been working through what it really means to estimate whether members may be living paycheck to paycheck.
We started by defining the term.
Then we discovered that cash flow often tells us more than income.
This week, another deceptively simple question emerged.
Which checking account should we measure?
At first, the answer seems obvious.
THE checking account. Wait..
Until you remember that many members don't have just one.
Some have multiple checking accounts.
Some split direct deposits.
Some use one account for bills and another for spending.
Some maintain accounts at multiple financial institutions.
Some use digital banks for everyday transactions while keeping their credit union relationship for lending or savings.
Suddenly, the question becomes much more interesting.
Which account tells the member's financial story?
The answer isn't necessarily the account with the highest balance.
Or the oldest relationship.
Or even the most transactions.
It's the account that reflects the member's everyday financial life.
That's why we've begun focusing on what we call a primary checking relationship.
Not because it's perfect.
But because it gives us the most consistent picture of how money flows through a member's life.
That raises another set of questions.
Does the account receive regular income deposits?
Are recurring household expenses paid from it?
Is it consistently active?
Does it reflect the member's monthly financial rhythm?
If the answer is yes, we're probably looking in the right place.
If not, we may only be seeing part of the story.
This may sound like a technical detail.
It isn't.
It's the difference between measuring an account...
and understanding a member.
That's an important distinction.
Because the CU Power Starting Proof isn't about analyzing checking accounts.
It's about understanding where a credit union has the greatest opportunity to fulfill its mission.
The more we work through these questions, the more convinced I become that meaningful measurement is built one definition at a time.
Every definition improves confidence.
Every improvement increases trust.
And trust creates evidence that leaders can actually use.
Next week, we'll tackle another challenge we didn't expect:
How much financial cushion does someone need before they're no longer living paycheck to paycheck?
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Credit unions do meaningful work every day—but those stories often live in silos.
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