How Does a Retail Payment Account Consumer Changes over Time? Usage Rate Behavioral Segmentation from 2010 till 2016 in the Czech Republic

The paper is focused on retail payment account consumers with account access via e-banking. Firstly, the goal is to provide payment account usage profiles at the level of payment instruments. Secondly, to assess the development of identified profiles during the crisis and post-crisis year 2010-2016 in the Czech Republic. The two-step cluster analysis sample segmented 16,392 individual payment account usage records. Three clusters were identified: price-driven, active, and low balance/overdraft user. The clusters were mainly separated by an ATM usage and average balance. Payment instruments showed a less significant difference. The first cluster showed exclusive preference of own bank’s ATM network. The second cluster manifested the highest usage frequencies and the broadest range of services. The third cluster had average account balance below zero with most of the consumers declaring an average balance from €-925 to €370. A steady trend of change was found regarding the demand structure. The price-driven profile was a mainstream consumer segment till 2014. The active consumer segment became dominant in 2015 due to a steady trend of price-driven profile share loss. The third cluster’s share remained stable over the surveyed period. The next change in consumer typology was related to the usage rate. All clusters showed an increase in ATM usage over time. Price-driven cluster steadily increased ATM withdrawal abroad from technical zero to 0.4 per month. Active profile and low balance/overdraft user increased domestic ATM usage by almost one withdrawal per month. Direct payments showed an increase over time as well. Direct payments shared trend of increase in average by one payment per month, in a case of the price-driven profile by two.