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No-fee self-service coin counters pay off for banks, customers
Financial institutions are constantly looking for ways to monetize their customer interactions, an objective achieved through the use of technology like self-service coin counters. In addition to providing a value-added service to customers, coin counters are also a way to entice consumers that fall in higher income levels.
Self-service coin counters fill a need
According to a Cummins Allison white paper, households that earn annual incomes in excess of $75,000 are more likely to collect and save spare change than homes that earn $25,000 or less. As a result, banks can attract a valuable customer segment by providing access to in-branch resources like self-service coin counters. What's more, the fees associated with this equipment are increasingly important for customers when they're considering where they can redeem their coins.
Non-customers pay higher fees
"Roughly 60 percent of coin collectors take their savings to banks to have them sorted and processed."
According to My Bank Tracker, alternative fee-based coin counters often ask consumers to accept an 8 percent or even an 11 percent cut whenever they use the equipment. For instance, $11 will potentially be taken out of every $100 transaction. As a result, instead of the full value of the coins, customers are forced to accept a lesser return in exchange for the service. However, there are banks that will allow account-holders to forego the fee. This helps to display the dedication the institution has for its patrons, and it can build loyalty.
In fact, roughly 60 percent of coin collectors take their savings to banks to have them sorted and processed, according to the Cummins Allison white paper. A big reason for this is the fact that they can avoid the significant charges they would otherwise face with fee-based coin counters. Among the top reasons for choosing a bank, fees are the third most important factor.
Financial institutions have a substantial opportunity to target high-value customers through the use of self-service coin counters. They're also able to capture more of the coin redemption market by eliminating fees that repel many consumers.
February 18, 2015
