Self Banking On The Cusp Of Growth, Says Study

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Self-service banking is on the cusp of an explosion in both quantity and quality, according to new research by the TowerGroup.

The research group estimates that by 2010, retail banking customers in the U.S. will conduct nearly 60-billion self-service transactions every year-an increase of nearly 50% over self-service transaction volumes forecasted for 2006.

Until recently, financial institutions' migration to self-service channels was driven by consumer demands for more banking options-not by the banks themselves, the TowerGroup said.

Yet recent internal studies by financial institutions have found that the most profitable customers are those who use a variety of delivery channels, both attended and self-service. Further, banks are finding higher satisfaction rates among consumers who have greater choice in dictating where, when and how they do their banking.

Airlines and Internet retailers, among other non-financial services industries, are continuing to innovate in the self-service options they provide to their customers, helping to drive further acceptance of self-service functionality.

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