In the era of the smartphone, mobile banking has seen a considerable increase in use. Account holders who once depended on bank branches have started using their mobile phones and laptops for a variety of transactions. And it seems as if new payment systems are entering the market each week.
The most common way of interacting with a bank or credit union remains the branch, with eighty-four percent (84%) of consumers with bank accounts stating they have visited a branch in the past 12 months according to a recent survey. However, the digital age has begun to generate an ongoing decline in cardholders visiting the branch as they rely more heavily on on-the-go account options via computer and smartphone.
Despite this growing preference for digital account interaction, the convenience of ATMs continues to drive consumers to use them as a main source of cash and account access. In fact, a recent study from Raddon Research Insights reports an increase in ATM use by those cardholders that rely on mobile. Here are 5 reasons why mobile banking users love the ATM.
5 Reasons Mobile Users Love the ATM
1. ATMs Are Convenient for Mobile Banking Users
In the past, new products and services were introduced through mail or phone. Now, mobile banking users are in touch with any new service or products from their financial institutions via their mobile devices and computers. Users have the ability to simply open their financial institution’s app or website and apply for the latest offerings. Account holders want this type of convenience in all aspects of banking.
Most transactions, like checking account balances, transferring funds, and buying goods and services, can be handled through mobile banking applications. But there is one thing mobile apps and online account access cannot provide - hard cash. A 2017 ATM and Self-Service Software Trends Report shows seventy-nine (79%) of respondents consider access to fee-free ATMs “very important” or “essential”. For fast and easy access to real funds, heavy users of online and mobile avenues turn to the most convenient, quick and easy solution - the ATM.
2. The ATM Has Evolved
The primary use for an ATM is still to grab some cash - but that is quickly starting to change. Newer ATMs are offering a wider range of convenient services including cash and check deposits, card-less transactions, person-to-person payments, and check cashing - and cardholders are taking notice. In fact, surveyed cardholders freely admit they would like to see greater functionality at the ATM - with nineteen percent (19%) requesting bill pay and over seventy percent (70%) asking for cash in denominations other than $20. Cardless transactions is another function many mobile users are beginning to rely upon – with large institutions such as Wells Fargo, Bank of American, JP Morgan Chase, and others announcing the introduction of card-free transaction capabilities at their machines. As these new capabilities are continually implemented, ATMs are becoming more user-friendly than ever before.
3. ATMs Can Give Mobile Savvy Users an Omni-channel Experience
With lower branch engagement, the avenues for communicating with mobile banking users are fewer than standard branch visitors - making alignment of digital messaging, called Omni-channel, more important than ever. Some advanced ATMs can help bridge the mobile user/financial institution gap with specialized upload and delivery software. These systems can provide an additional avenue for banks and credit unions to display event reminders, special offers, and other relevant messaging - specifically targeted to the cardholder.
4. A Preference for Self-Service
A Mercator Insight Report, “Self-Service, ATM, and Other Channel Banking: Expand My Options” notes that more and more consumers are enamored with self-service options - including the ATM. The report surveyed over 3,000 financial institution account holding adults. Of respondents, smartphone owners reported using a wider variety of self-service with sixty-seven percent (67%) banking at the ATM versus sixty percent (60%) of total respondents.
5. Financial Institutions Love ATMs, Too
Supporting an ATM network is often less expensive than maintaining a robust branch presence. And, as branch usage trends downward, ATMs simply make sense as a reliable avenue for maintaining physical brand presence and cash availability. The growing availability of surcharge-free networks and outsourcing opportunities at already convenient locations are also a benefit for banks and credit unions focused on reaching their cardholders on-the-go.
Mobile Banking Isn’t Going Anywhere
As smartphones continue to grow in popularity and prevalence, consumers steadily come to trust and rely upon the technology and integrate it more fully into their everyday lives. These mobile users show a marked preference for convenience, self-service...and the ATM. With the growing availability and addition of more advanced functionality, the ATM is quickly becoming an invaluable touchpoint for connection with digital and mobile banking users.