A recent report has revealed that the growth in deposits spurred by interest rates wasn’t sustainable. Furthermore, from 2016 to 2018, banks and credit unions found it highly difficult to attain profitability through traditional means of extending loans and building deposits. The reason was that the interest rates were too low to yield a profit on loans and attract a good amount of deposits.
Then, digital transformations in banking services became a priority for many financial institutions. However, when the interest rates started rising in the middle of 2016, once again, deposits growth became a major focus for several financial insinuations.
Conversely, Deposit Insights Survey shows that rate wars do not attract today’s consumers; only 7% of Americans were interested in tracking rates and moved their deposits to an institution for better rates.
Also, more than 40% of consumers move their money to a financial institution without considering the interest rates. In fact, Perceived Convenience is one of the major reasons that attract several people for deposits.
In 2017, an omnichannel shopper survey found that Perceived Convenience is defined today as enabling the customers to access their funds whenever or wherever they want, with no foreign surcharge. Nevertheless, the part that ATM devices are playing in today’s era is worth noticing; people are more likely to commute to ATMs to process their financial transactions rather than receiving bank services.
Also, another research found that consumers expect to use ATM units that offer better functionality along with convenient features. Not only this, but people are also becoming more reliant on ATM devices to conduct financial transactions, including cash withdrawals and check deposits.
Not to mention, instant access to cash in retail stores, as well as bank branches, has proved critical. However, while 87% of Americans today use ATMs, they are expecting no-fee ATM networks. Research reveals that 67% of people said they would prefer using ATM units that do not charge an extra fee for the service.
Surcharge-Free ATM Networks
Besides hassle-free access to cash withdrawals within a surcharge-free ATM network, other functions, including deposit acceptance, have become necessary. Many consumers prefer dealing with cash devices for immediate banking transactions; so, making deposits is becoming more popular among ATM users. Mercator research shows that 76% of users made cash deposits, whereas 58% of them were depositing checks.
It further unveils that new financial institutions are competing against larger organizations through leveraging the distribution of located ATM units. When it comes to the benefits of ATM, it impressively expands the deposit convenience with no capital outlay. Put simply; consumers can easily make deposits, through cash or checks.
Considering what we have discusses until now, it’s a perfect time for you to go beyond cash withdrawals and provide your customers with a convenient yet full-service banking service. By installing the latest ATMs, such as from MOBILEMONEY, you can provide your customers with easy access to make cash and check deposits.
Not to mention, this strategy will ultimately reduce your costs for capital expenditures, along with eliminating operational costs.
The Bottom Line
While ATMs have become one of the key factors for businesses to boost their profitability, it’s important that you leverage this amazing technology to take an edge over your competitors. While your retail store may already contain an ATM, it’s time to upgrade it with the latest models that you can find on MOBILEMONEY.
Unlike in the past, where ATMs were only used for cash withdrawals, enable your customers to make cash or check deposits through the ATM unit you have at your store. Believe it or not, this deposit strategy will make your business stand out in the retail industry.