To the Editor:
In the March 23 article First Wingspan Kiosks; Now Bankone.com Kiosks Too you wrote that the Wingspan kiosks are meant to attract new users to the companys Internet-only bank, while [other] kiosks are meant to prove ... that Internet banking is easier and more convenient than branch banking. ... A few other banking companies have been installing kiosks here and there to prod customers toward lower-cost channels.
The allure of the Internet may be distracting us from identifying alternate delivery channels. These might be cheaper to implement and maintain than kiosks, and easier and more convenient for our customers than branch banking.
For example, what keeps us from accepting deposits through a debit card?
A customer who returns debit card-purchased merchandise can expect a credit for the corresponding amount to appear on the next statement. Consider, instead of unwanted merchandise, this customer delivering checks and cash to that merchant for a deposit.
As with an ordinary purchase, the merchant would confirm the amount and instruct the customer to pass the debit card through the electronic card reader.
The transaction amount would be displayed on the readers screen for customer verification and authorization. Once authorized by the customer, the merchant would process this as a merchandise returned transaction, resulting in a credit to the customers account.
Depending on merchant affiliation, a program such as this could extend 24 x 7 availability to risk-worthy customers right in their neighborhoods, in a seemingly branchless banking environment. And while merchants could benefit from higher store traffic and transaction-related incentives, banks could benefit from increased debit card usage fees and higher merchant compensating balances.
Indeed, there may be easier and more convenient delivery channels than branch and Internet banking. Lets stay alert and open to the opportunities.
Robert O. Suarez
Senior vice president, chief information officer
Fidelity Federal Bank
Los Angeles
