Consumer Payment Card News

Consumers Want More ATM Services

Many consumers want their banks to provide additional services such as event ticketing, coupons and internet access through their ATMs, according to a nationwide survey carried out by NCR Corporation. The survey shows that these new services can help banks justify charging ATM fees. While 32 per cent of respondents agree with paying fees for ordinary ATM usage, the figure rises to 37 percent for those more advanced services. Among young people 18 to 35 the figure rises to 42 per cent. There is also a demand for personalized services from banks. Almost half 48 per cent of the respondents felt happy with banks using personal data if it would lead to better, more individual services, while 47 per cent of 18-34 year olds said that this was an important factor in their choice of banks.

FULL STORY:
Many consumers want their banks to provide additional services such as event ticketing, coupons and internet access through their Automated Teller Machines (ATMs), according to a nationwide survey carried out by NCR Corporation (NYSE: NCR).

The survey also reveals a strong demand among many consumers for banks to offer them more personalized services. And it contains a warning that many people would consider switching their accounts to well-known household brand names if they chose to enter the banking business.

“Consumers have long understood the convenience that ATMs have brought to banking,” said Lars Nyberg, NCR’s Chairman and CEO. “Now they’re hearing about the extra capabilities of the new generation of ATMs such as bill payment, ticketing and arranging loans and they want their banks to provide them.” Nyberg announced the survey findings here to an audience of senior executives from the continent’s leading retail banks attending NCR’s second annual American Financial Seminar.

The survey also shows that these new services can help banks justify charging ATM fees. While 32 per cent of respondents agree with paying fees for ordinary ATM usage, the figure rises to 37 per cent for these more advanced services. Among young people — 18 to 35 — the figure rises to 42 per cent.

There was also a clear demand for personalized services from banks. Almost half — 48 per cent — of the respondents felt happy with banks using personal data if it would lead to better, more individual services, while 47 per cent of 18-34 year olds said that this was an important factor in their choice of banks.

“It’s a very clear message for bankers,” said Nyberg. “The consumers are saying: ‘You have our accounts and you have all the data you need about us; now use it to treat us like individuals when you write, phone or meet us.’ The younger generation in particular indicate that they will vote with their feet if they aren’t happy.”

There was also a warning from consumers that they would readily consider switching accounts to leading household brand names from the amusement park, soft drink or fast food industries if they decided to enter the banking arena. Up to half of the younger age group said they would consider using these companies.

“This is a strong, spontaneous reaction to brand names which consumers would like to be associated with in banking as well as their leisure activities,” said Nyberg. “We’ve seen leading retail brand names invade traditional banking territory in several countries and it could well happen here.

“The message for banks is that their franchise may not as safe as they think it is in an age when there are few barriers to entry from outside the industry. They need to guard against these brand names by making the most of the technology available to them and offering consumers exactly what they want today — a more customized, personalized level of treatment and in particular, more services through their ATM networks.

NCR Corporation

NCR supplies banks and other financial institutions with Banking Solutions in the Age of the Consumer — solutions that are tailored to our customers’ individual needs so that they can offer the best services to their consumers. These solutions include, apart from ATMs, relationship management systems, image and payment systems and consumer delivery systems.

NCR Corporation’s computer systems, store automation, banking systems, consulting and support services are used by customers in more than 130 countries around the world. NCR is located on the World Wide Web at http://www.ncr.com

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