As financial institutions grapple with how best to compete for accountholders in a digital environment, an undeniable truth is that physical forms of payment, in particular cash, still matter to consumers. While consumers are signaling a greater focus on mobile banking, a key area of competition among financial institutions, physical proximity to cash-out and cash-in features, remains equally valuable and necessary. That’s because paper payments – led by cash – continue to be among the most used payment methods of consumers and small businesses. While the ability to extract physical currency from one’s digital banking account has become commonplace through the ATM, the moving of hard currency back into the financial cloud remains mostly dependent upon a branch ATM or teller.
In this paper, we examine the demand that exists for paper-based monetary deposits as a necessary component of digital banking based on specific use cases. Further, we share our finding that meeting the demand for deposits is best achieved by integrating these capabilities into an institution’s digital/mobile eco-system by leveraging a network of deposit-enabled ATMs.