How can coin counting machines help banks increase revenue?
Banks that are interested in reinforcing their local branch strategies can look to self-service coin counters as an effective solution. Customer traffic is a key metric in measuring the success of any financial institution. A large volume of patrons visiting the establishment means the bank is likely generating more revenue from its services. However, many of these businesses have experienced obstacles in maintaining the vitality of the brick-and-mortar branches in recent years. With the advent of online banking technology, many companies are reducing their footprints as a way to control costs.
Quartz, an online economic news publication, cited a report from SNL Financial that found banks shuttered more than 280 branches in the first quarter of 2014. At the current pace, the industry is on track to close 2 percent more establishments by the end of the year compared to 2013. Most companies participating in these closures have justified their decisions to reduce the number of banks in their networks because of the rise of mobile technology.
Reinforcing branch services positions banks to compete with other establishments
Most consumers enjoy access to a variety of online banking features these days. However, those amenities only represent a small portion of the additional services offered by financial institutions. Kevin Tynan, a senior vice president of marketing at the Chicago-based Liberty Bank for Savings, argued in an op-ed published in American Banker that the brick-and-mortar branch still satisfies an important niche for consumers. In fact, most individuals rely on the ability to consult with a bank teller or representative in person when they wish to open a new account or ask questions that can't easily be answered over the phone. Tynan wrote that most people even choose their banks based on factors such as proximity and convenience.
In other words, closing branches isn't necessarily the best strategy for financial institutions moving forward. Instead, enterprises can revitalize their existing strategies by offering a variety of amenities. This includes incorporating coin counting machines that patrons can access at their leisure during normal operating hours. Aside from a local bank branch, most people have few options when it comes to finding a place to convert loose change into hard cash. Offering these kinds of niche services will help any financial institution attract more customers and remain competitive in an increasingly volatile industry.
May 1, 2014