Consumers still are conducting a high number of cash transactions per month, survey data the Federal Reserve Bank of Boston released in June show.
In 2009, consumers on average were conducting 16.6 cash transactions per month compared with 13.1 debit transactions and 7.6 credit transactions, the research found (
With consumers retaining a passion for cash, more banks likely will recommit themselves to their ATM operations, observers say.
Companies such as Cardtronics Inc. already are taking advantage of consumers’ steady demand for cash by seeking ways to influence their behavior in a way that will benefit financial institutions and merchants.
“That goes beyond our traditional thinking,” Cardtronics CEO Steve Rathgaber told PaymentsSource earlier this month in Chicago during the BAI Retail Delivery conference. “That’s something we’re building towards.”
Cardtronics is attempting to engage consumers before, during and after ATM cash withdrawals with the help of Locator Search, a product that enables banks to market existing branches and ATM networks to customers across different channels, including online and through mobile phones.
For example, customers can send their banks a text message to find the nearest branch or ATM. The message back to the customer could include a link where driving directions are provided.
Cardtronics also is working on behalf of banks to enhance the consumer experience during and after cash withdrawals through loyalty programs and custom advertisements at the ATM, Rathgaber said.
“I think we’re approaching a time with the convergence of technology, with the density of our models and with the capabilities that are now available on screen and in software, to where we can truly do the advertising thing a little bit more richly,” he added.
Rathgaber admitted Cardtronics is still in the early stages about learning what drives the consumer.
“That’s part of the journey,” he said.
What Cardtronics and financial institutions are learning from consumers is that ATMs still matter.
The Dieringer Research Group Inc. found that 57% of consumers it recently surveyed said ATMs were an important factor when choosing a bank. Seventy-four percent of respondents also said conveniently located ATMs factored into their decision.
Dieringer surveyed 2,000 consumers by phone late in 2010 into early 2011. It made the results available in April.
“Hopefully, it’s an indication the ATM channel is coming back,” Andy Hernandez, executive vice president and director of channel development at BBVA Compass Bancshares Inc. said about the survey during a panel discussion. “The channel has a growing significance in customer satisfaction for the bank.”
However, investment in ATM programs typically loses out to online and mobile-banking initiatives because the industry has shifted its emphasis to those areas, Hernandez said. But BBVA is enhancing its ATM footprint with continued deployments while leveraging areas such as mobile to improve the user experience.
What do you think about this? Send us your feedback.
