Using technology to make cash deposits simpler for customers

Digital payments are rising, cash payments are falling and a growing number of businesses are going cashless. Banks and other financial institutions (FIs) have embraced digital payments as a faster, more convenient and cost-effective way of doing business.

Based on this scenario, you might think the US is heading towards a cashless society. But customers aren’t ready to give up cash completely. Even the most tech-savvy want to keep it as an option. FIs that think they can leave cash behind will have to think again.  

Cash is still king

Those who want to see cash go away completely point to data like the recent Gallup poll, in which 60% of respondents said they make few or no purchases with cash—a significant drop from previous years.

But that number tells only part of the story because it’s weighted toward the higher-paid end of the spectrum, which represents a small proportion of the population. Here’s why: around half of the 66% of people who earn less than $100k still use cash regularly. And more than half of respondents across all demographics still like to have cash with them when they leave home. Meanwhile, another study suggests that, for 30% of customers in the US, cash remains their preferred payment method. Cash may no longer be the default payment method, but demand remains high across the entire population.

Banks need a cost-effective way to provide fast, surcharge-free cash on demand. That means rethinking their approach.

‍The challenge of cash

Unfortunately, FIs are not always keen to fulfill customers’ demand for cash. Providing customers with access to free, on-demand cash is expensive and time-consuming. Employees must be paid to handle the cash. Audits can become more complicated. And then there are the security risks.

From this perspective, every other payment option seems more convenient, less expensive and lower risk than cash: mobile payments can transfer money with just a tap, checks can be deposited via smartphones and funds can be transferred online.

What banks need is a cost-effective way to give customers access to fast, surcharge-free cash on demand. That means rethinking their approach.

The first step in that rethink is technology. To move from traditional static ATMs, which dispensed cash, to advanced ITMs, which offer a wider range of services, including withdrawals, deposits, statements and more. ITMs bring many of the services you’d expect from a branch, including person-to-person help from a from a real employee of the FI  over video—right on the ITM itself. That employee may even be a teller they know from the branch.

The second step is geography. To place surcharge-free cash machines where people live and work—either through units the FI itself owns or through networks. This way, FIs can extend their reach beyond their branches and into their communities.

ATMs and ITMs can be customized with your FI’s branding, laying the groundwork for custom marketing programs at branded locations. This helps companies raise awareness and ensures that their own customers can benefit from surcharge-free banking services at convenient locations like retail stores they may be visiting anyway. Rather than having to schedule time to travel to a branch, they can manage routine tasks such as checking statements or depositing cash while they do their daily shopping.

The third step is customer adoption. It only takes your customer a few great user experiences to go from thinking about your machines as static cash dispensers to thinking about them as a great interactive way to take advantage of a host of services in one stop—including cash withdrawals, deposits, statements, balance checks and more. If the customer wants personal help, they can get it there, too, on a video chat.

Now cash is digital, too

Cash itself is even moving into the digital age, thanks to the development of contactless and mobile cash. Now, instead of having to carry a physical card to access cash, customers can simply use a mobile app and a one-time-use numeric code to receive cash payments from any digital account. .

Cash may be a traditional payment option, but that doesn’t mean it can’t take advantage of digital technology. The two can be combined to provide new and exciting opportunities for customers and businesses alike.

Making it affordable for your FI

The final piece of the jigsaw, and the one that will appeal directly to FIs, is to find a more cost-effective cash solution. Maintaining—and expanding—a fleet can be expensive: hardware, maintenance, servicing, dealing with vendors and staying ahead of (or at least not behind) the innovation curve.  

One solution is to adopt an ‘as service’ model like that used with software. ATM as a Service (ATMaaS) gives FIs access to the latest technology, complete with a range of interactive financial services, all managed by an outsourced partner. Such systems can offer complete hardware, software and ongoing IT support together with a branded fleet of ITMs for a low, fixed monthly fee.

Cash recycling machines can also reduce the financial burden of stocking and restocking machines. Notes can be deposited at the machine and instantly added to the customer’s account. Those notes are then free to be withdrawn by the public. It’s a cheaper and safer approach, one that reduces the security risks associated with moving dollar bills from one place to another.  

With the right technology and implementation, FIs don’t need to choose between giving customers the services they want and cutting costs. Both are possible. ITMs and ATMs with cash deposit capabilities give customers full-service banking at their convenience and help FIs divert resources to more consultative banking services.