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Consumer perceptions, operator opportunities in the ATM channel today

"Changing consumer ATM habits and how to address these for success," a breakout session at last month's ATMIA US conference, gave financial institutions and independent ATM deployers a look at results from a TNS study that illuminated opportunities to increase ATM user satisfaction and boost operator revenues.

Consumer perceptions, operator opportunities in the ATM channel todayiStock.com/AndreyPopov


| by Suzanne Cluckey — Owner, Suzanne Cluckey Communications

"Changing consumer ATM habits and how to address these for success," a breakout session at last month's ATMIA US conference, gave financial institutions and independent ATM deployers a look at results from a new study that illuminated opportunities to increase ATM user satisfaction and boost operator revenues.

Presenter Dan Lyman, North American head of business development for fintech solutions at Transaction Network Services Inc. opened the session with an overview of the research objectives, which he said were simple.

"We just wanted to understand consumer perspectives regarding their use of ATMs, looking at a perception that consumers have today on ATMs versus what we all may recognize from years ago when cash was still the king in all sorts of transactions."

The independent survey was conducted by Kantar TNS, and included 1,050 adults comprising representative sample of the U.S. population. Following are research statistics presented in the ATMIA session, accompanied by quotes from Lyman, lightly edited, that provide supporting insights.


(Click on any image below to see it at a larger size)


"No matter how much migration we see attached to alternatives, 8 in 10 people basically agree that it's still important that they have access to cash."

"The inference is that it's not a challenge for consumers to find an ATM."

"Overall, 85 percent of our respondents agreed [that availability is usually good], but that means 15 out of 100 don't agree. That's a significant portion of the consumer market that's using those ATMs that really is not happy."

"Not surprisingly, the group from age 25 to 34 was the most accepting of the noncash alternatives. But by and large, there's still a significant percentage of the population that doesn't seem to think that cash has become less important."
"Twenty percent of respondents — which is not insignificant — don't care. They're not deterred by having to pay to use an ATM that's not associated or affiliated with their bank. So they are willing to pay those convenience fees."

"So, what do we infer from that data? Most consumers will seek out their bank's ATM to avoid the fees, but some don't care."

"And I think most consumers do appreciate all the work that all of you do and that we do."

"There is a cost to that and there's a cost to providing that convenience, that access to cash."

"If your ATM is down ... chances are you're losing a lot of future business from consumers that frequent that ATM. And if it's repeatedly down, that could be a significant loss of traffic."

"How many transactions do you lose during the outage and how many transactions do you lose in future business even after the ATM is back operational again, just because people that frequent that location are not coming back because they're getting frustrated with the service interruptions?"

"That's a pretty broad question, but ultimately, consumers are more than happy to engage in other ways at an ATM and especially at a [geographical] distribution that's as accessible as the ATM market is today."

"What this data tells us is that consumers are very open to broadening their engagements at ATMs, and there's an opportunity for us to enable brands and other consumer-facing product providers. It's a self-service platform that can be used much more broadly than just to do banking transactions."

"This tells us that there's comfort with other ways of interacting with the ATM besides presenting a card. This opens up an opportunity to enable the use of the ATM as a distribution vehicle for enriched engagement."



Suzanne Cluckey

Suzanne’s editorial career has spanned three decades and encompassed all B2B and B2C communications formats. Her award-winning work has appeared in trade and consumer media in the United States and internationally.


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