LAS VEGAS–Banks adding such features as videoconferencing and check imaging to their ATMs and self-service kiosks are taking steps to satisfy consumer preferences, new research suggests.
"Thirty-seven percent of ATM users see the ATM as their primary banking channel," says William McCracken, CEO of Synergistics Research, who spoke at SourceMedia’s ATM, Debit & Prepaid Forum in Las Vegas last week.
In a similar survey Synergistics conducted in 2007, 22% of ATM users placed such reliance on ATMs, he said.
The use of ATMs steadily is rising and catching up to branches as the place where bank customers want to make deposits, McCracken suggests. This is good news for banks that seek to shrink their branch networks, either in number or in square footage, and rely more on machines than tellers.
The research firm also asked 1,000 Internet-using households what they would like to do at an ATM that they cannot do today. The most common answer, chosen by 59% was, "cash checks."
Consumers most typically deposit personal checks (65%), payroll checks (38%) and cash and coins (36%) at ATMs, the survey found. Eighty-one percent get receipts at the ATM, and most were interested in receiving receipts on their mobile phones. Only 23% experienced overdrafts caused by ATM withdrawals.
When Synergistics asked respondents who do not use ATMs to deposit cash and checks what would motivate them to do so, 43% said rewards, 37% said the ability to immediately withdraw upon deposit, 35% said having the deposit amount printed on the receipt, and 29% said having the check image printed on receipt.
The findings suggest many consumers do not know about the latest services ATMs provide. "Some of this is a communication issue,” McCracken says. “These people aren't using ATMs and don't know you have these features."
The survey data suggest that 75% of consumers use their own bank's ATMs, while 23% use the ATM that is most convenient.
The poll found strong resistance to foreign-ATM fees: 36% of consumers said their own bank should not charge them for using another deployer’s machine, and 40% said the fees are too high.
"We're charging consumers on the upper end of what they'll accept," McCracken notes. The consumers surveyed were not interested in maintaining a high balance to avoid fees, and 54% said they would consider switching banks for free ATM access. Among respondents ages 18 to 34, 63% said they likely would switch banks for free ATM access.
Asked about the advantages of using kiosks, 54% of respondents cited their availability when the bank is closed, 45% cited emergency use, 38% cited convenience, and 36% said using them is faster than going to a bank.
Those percentages are low compared with other parts of the world. "When you go to Asia (where self-service financial activities are widespread), you can see how a kiosk can change the financial relationship," McCracken said.
Age also plays a role in consumers’ opinions regarding kiosks. While 49% of respondents overall would use a financial kiosk, 64% of those ages 18 to 34 said they would.
Despite the enthusiasm for ATMs and kiosks, the notion of low or no-fee branchless accounts in which a consumer only could interact with their bank online or through an ATM or mobile device did not sit well with survey respondents. Thirty percent said they would find the concept very appealing, 34% found it somewhat appealing, and 13% were not interested at all.
"It's a good idea, but how do you handle the consumer who needs to go to the branch occasionally?" McCracken asked.
Asked why their did not use ATMs, 40% of respondents said they preferred a human teller; 36% cited personal security concerns, and more than 40% indicated a preference for using debit cards instead of cash.
Respondents’ security concerns included skimming, cited by 79%; being robbed at an ATM, cited by 70%; and others being able to see their PIN, cited by 69%.
"The security concern is what jumps out at me," McCracken said. "The industry needs to do better job at providing security and educating people about it."
Asked what banks should do to protect them, 74% cited install cameras, 68% said provide an alarm button, 61% said install a privacy screen, 61% said use bright lighting, and 45% said make the ATM highly visible.
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