Banks and IAD: Mutually Beneficial? - GoldStar ATM
It has been clear throughout the past year as the world has dealt with the ravages of the COVID-19 pandemic that cash isn’t going anywhere. What has changed, however, is how people want to be able to access their cash. As the COVID-19 pandemic began to make its way through the U.S., local and state governments began to lockdown. While deemed essential businesses, many financial institutions severely cut down on their necessary staff, closed locations, or curbed their hours. And yet, the demand for access to cash is still there.

Increasingly, customers are seeking self-banking ATMs to conduct basic banking transactions, including accessing cash. This means good news for Independent ATM Deployers (IADs) who have the opportunity to collaborate with banks to provide easy access to cash throughout localities.

In August 2020, MetaBank, N.A., a financial institution that serves consumers who are often overlooked by traditional banks, conducted a survey of over 1,200 people in the U.S. The survey focused on how respondents felt about post-pandemic cash and ATM usage. The results can help financial institutions and IADs identify ways to improve service to their customers.

Cash Remains Strong During COVID-19

While many people thought that cash would begin the inevitable fall of cash in America, survey results found otherwise. The majority of respondents (55%) still accessed cash in spring 2020. Additionally, 59% of respondents said that their views on the use of cash have not altered. What has changed, however, is that 24% of respondents stated that they were less likely to visit a bank branch as a result of the pandemic.

Self-Service is the Future

What was also apparent is that self-service banking is the future. 43% of respondents said that they were interested in self-service activities completed at an ATM rather than in a physical bank branch. Over 19% of respondents stated that they’d prefer to complete simple self-service activities at an ATM. These activities include accessing cash, making deposits, and cashing checks. Also noted was the ability to video conference with a remote teller.

The Role of an IAD

With bank branches closing nationwide, IADs have the opportunity to step into the fold by providing access to ATMs throughout local communities where bank branches may have closed. For banks wanting to provide ATM access to their customers without having to manage a fleet of ATMs, constructing a branding agreement with an IAD allows this.

With cash demand still remaining strong at the same time as bank closures are increasingly common, IADs are finding ways to fill the growing demand for self-service banking. When IADs and banks partner, both parties are able to increase their customer base. It’s a win-win situation.

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