Mercator Blog

Strong Interest in Using Mobile Device to Withdraw Cash From ATMs
Date: March 17, 2017
Karen Augustine
Manager, Primary Data Services
Self-service banking is growing rapidly in the United States at the expense of use of in-branch tellers, as consumers do more of their day-to-day banking activities via ATM, online banking, or mobile banking without the assistance of branch personnel. While many consumers still prefer going to a teller for some transactions, most want to be able to do more banking themselves at their own convenience. Financial institutions (FIs) are focused on reducing service delivery costs by automating transactions while increasing the convenience of time and place to retail banking customers. As this Mercator Advisory Group Insight Summary Report demonstrates, U.S. consumers are embracing this added self-service convenience.

Financial institutions continue to develop self-service banking with the expansion of online and mobile banking as well as the functionality of ATMs and videoconferencing. As shown by the survey findings summarized in this report, U.S. consumers who use self-service banking engage more often with their FIs and use a wider variety of self-service channels. Industry pundits have been predicting a transformation in banking channel use with the adoption of new video, mobile, and ATM technologies. Our findings confirm that U.S. consumers are beginning to prefer the convenience of self-service methods to make simple transactions rather than visiting the branch to conduct transactions with tellers.

In this new mobile era, consumers are embracing mobile technology and mobile banking and relying on mobile more to manage their lives. This is fostering more active engagement with their financial institutions as well as growing interest in new options, even in the more traditional channels of bank branches and ATMs, to enhance convenience, save time, and support more services in more channels. Consumers want a plethora of options available to them to enhance banking convenience.

As consumers avail themselves of the growing array of self-service banking options, they have more choices as to how, when, and where to bank and they will take advantage of the enhanced convenience. Financial institutions need to listen to their customers, especially those in segments who engage with them more frequently than average and through multiple channels, and provide greater access to added functionality no matter what channel is used. Customers will want the bank to recognize their communications and transactions as quickly as possible and enable them to optimize the convenience of multiple channels with seamless integration.

Learn more in Mercator Advisory Group’s most recent Insight Summary Report, ATM and Self-Service Banking: Key to Engagement, from the bi-annual CustomerMonitor Survey Series.