Self-service coin counters could give local bank branches a more effective way to increase traffic. Much has been made about the demise of the traditional branch as more people conduct their personal banking online. However, there are many steps financial institutions can take to raise traffic.
Bankrate surveyed more than 1,000 U.S. adults on the state of their personal finances in its March 2014 Financial Security Index and revealed that 14 percent of bank customers have not set foot inside a branch in the past six months and 21 percent hadn't been to a branch in a year or more. This was especially true for younger individuals. Only 19 percent of 18 to 29 year olds had visited a branch within the past week.
While these statistics received the most attention. the study found that 70 percent of bank customers still utilize branches, which is a prime opportunity for financial institutions to proactively engage with individuals. However, it is clear that customers' relationships with branches are constantly evolving, and financial institutions need to be prepared for this major shift, according to The Financial Brand.
What can branches do about decreasing traffic?
Many of the changes in customers' relationships with bank branches are the result of behavioral shifts. Some banks are responding by changing the staffing levels in their facilities, The Financial Brand stated. Fewer employees will be at the branch at any given time, and they will be in roles such as lending officers, relationship managers and financial advisors. These staffing choices may reflect consumers' increasing preference for self-service options.
Additionally, the article noted that some major banks may shift to a smaller branch design to provide more services to customers in a smaller amount of space. The future of banking may focus on offering extra convenience to individuals.
Because of the large move to online banking, financial institutions need to find new ways to both engage customers and increase branch traffic. Self-service coin counters are an additional offering banks can extend to their customers. Unlike many other personal banking functions, this can't be done online. Many people save change, and having access to a coin counting machine in a location where they already go can save them time and make it easier for them to receive cash for their change.
In the near future, banks will need to come up with new solutions to maintain or increase branch traffic, and providing self-service coin counters could provide an advantage for financial institutions.
June 23, 2014