What Happened to the Double-Dippers?
In early November 2023, Citi launched a controversial program targeting a specific group of customers, encouraging them to go paperless by notifying them that if they continued to receive paper statements, they would lose access to their online banking account, including the Citi Mobile App and website.
These customers, known within the Customer Communications Management (CCM) industry as “double-dippers,” receive both mailed and digital versions of their credit cards bills and statements. Despite receiving paper, they primarily use Citi’s digital services—such as the mobile app or website—for activities like checking account balances, tracking transactions, and making payments.
To clarify, Citi required these double-dippers who were using the mobile application and receiving paper to agree to digital-only communications or risk losing access to their accounts. After agreeing to go digital, customers still had the option to revert their preference back to mailed statements if they chose to do so.
The program which was announced as a pilot, received substantial criticism in industry media for its heavy-handed approach and poor customer experience. There are two key elements to this story: first, the push to force customers into digital communications; and second, the more concerning aspect of withholding access to their accounts unless they complied, even if they could later revert to back to paper as their preference.
Despite extensive research and outreach to media outlets like The Wall Street Journal, I have been unable to uncover concrete information about the outcome of this pilot program. What I have heard, through reliable sources, are rumors of a lawsuit that may have led to the termination of the pilot program. I have been unable to verify a lawsuit, and when I reached out to Citi they declined to comment.
The issue here seems less about the transition to digital communications and more about the potential overreach of restricting account access—a tactic that could be seen as holding customers’ accounts hostage.
The issue here seems less about the transition to digital communications and more about the potential overreach of restricting account access—a tactic that could be seen as holding customers’ accounts hostage. This raises questions about possible violations of the E-Sign Act, which stipulates that no one can be compelled to use or accept electronic records without their consent.
In response to Citi’s pilot program, Rep. Michael Turner (R-Ohio) introduced H.R. 6777, the “Protecting Against Paperless and Electronic Requirements Act” (PAPER Act), a little over a month after Citi’s pilot on December 13, 2023. The bill was introduced following reports of banks pushing customers towards full digital adoption as a requirement for maintaining access to online accounts. The PAPER Act mandates that depository institutions and credit unions offer customers the option to receive paper statements and prohibits requiring digital statements as a condition of any service. The bill is currently under review by the House Financial Services Committee.
Several questions remain unanswered. Was there indeed a lawsuit and was the program halted as a result? If not, how many customers closed their accounts due to the enforcement of this policy? How many chose to revert back to paper statements? Did the pilot have measurable impact on Citi’s customer scores or other business metrics?
Another interesting possibility is that the program quietly succeeded, perhaps shedding a group of account holders that Citi preferred not to retain. However, the lack of transparency makes it difficult to say for sure. My guess is that Citi isn’t alone—other financial institutions and industries with large user bases are likely experimenting with similar strategies to accelerate the transition to digital communications, increasingly driven by AI and private LLMs that navigate the legal boundaries of regulations. It’s worth noting that the E-Sign Act only applies to communications from financial institutions.
What happened to the double-dippers at Citi? If you have insights or thoughts about this Citi pilot program or results, please contact me or feel free to share by commenting below. Your feedback could help shed light on what happened and what it might mean for the industry moving forward.
1 thought on “Citi’s Paperless Push One Year Later”
A more effective and customer-centric strategy for transitioning customers to digital communications is to enhance the value that digital offers compared to paper. While cost savings are important for businesses, customers will be more willing to embrace digital if it delivers features that paper cannot match.
For instance, digital communications can offer personalized video explanations of complex statements, instant transaction inquiries, and in-document AI assistants to address customer queries in real time. These features not only provide convenience but also improve the overall customer experience, making digital adoption feel like an upgrade rather than a sacrifice.
The forced approach used by Citi, as described in the article, risks alienating customers and could have long-term repercussions on customer trust and satisfaction. Instead, emphasizing the unique benefits of digital while maintaining customer choice would be a more sustainable and positive way to achieve adoption goals. A strategy focused on adding value aligns better with customer expectations and industry trends toward personalization and interactivity.