ABA Banking Journal - November 2007 - (Page 36)

COVER STORY Coin counters thrive in the age of self-service vision consultants. Greg Lowell, the Reston, Va.-based senior manager of financial services strategy practice for Accenture, sees several options. Over the next two to five years, Accenture sees more self-service automation being built into the branch. “Banks have gradually begun to do more marketing and make greater use of the screen,” Lowell says. “We’ll go from more efforts at personalization and perhaps, better coordination of the internet and ATM channels, and then move to cash recycling and deposit automation,” he adds. Over a somewhat longer timeframe, the consultant also sees teller-assist functionality getting mainstreamed at branches, except at a smaller, elite fleet of dedicated full-service branches. “Imagine brochures being replaced by interactive kiosks that can, in effect, get the customer far more involved in financial planning—these devices can get the customer engaged far more easily than a brochure,” says Lowell. This sort of rich transaction branch experience has already been foreshadowed by the adoption of flat-screen display panels in many banks. Bank of Smithtown, Smithtown, N.Y., an early adopter of these video devices, has no brochures or rate boards in its newer branches, as described in last month’s cover story. And yet, internationally, “magical” ATMs and kiosks are earning their keep in new, inventive ways. In Asia, the Middle East, Spain, the U.K., and South America in particular, these devices are supporting biometrics, ticketing, stamp dispensing, and bill payment. All functions that have been possible here, but only sporadically adopted. “Those cultures accept self-service— it’s not entirely clear why,” Silva notes, adding: “These devices are often cobranded—bank and soccer teams are common pairings.” (In the U.S., Chase, Sovereign, and others are co-branding retail ATMs. Chase, has partnered with drug store retailer Duane Reade.) Self-service coin counting equipment, long associated with supermarkets or convenience stores, is also finding itself increasingly in bank branches. In the words of one manufacturing firm executive: “Banks want to offer convenience, and, in the last five years, it’s gone mainstream.” There’s another reason: it’s fun to get cash for coins. TowerGroup’s Jerry Silva, in a research note published in October, says that almost $3 billion in coins is redeemed in these machines annually. It’s about human interaction. Although that statement may seem counterintuitive given that we’re talking about self-service, the fact is coin counters bring people into the branch, including noncustomers, notes Wayne Stellmach, manager, marketing communications for Cummins-Allison Corp. Cummins’ machines have direct deposit capability but the most common situation is still to send people to a teller with a receipt to collect the cash from their coins, which creates a sales and service opportunity. The unit pictured, the Money Machine, is PC-based and can display messages and video on its 15 inch display. Good for retail or commercial coin deposits. Coinstar’s recently introduced Madison unit is smaller than the models you see at the grocery store. The units can support a bank-branded message, says Gretchen Marks, vicepresident of corporate marketing, and allow customers to transfer their coin deposit directly into checking. West Coast Bank in Portland, Ore., has had Coinstar units deployed in its branches for retail customers for six months, notes CEO Bob Sznewajs. “Soon, cash-based businesses like laundromats and grocers will be able to deposit their coins directly in their accounts,” he says. Grab that captive audience. The average coin counter user brings in $99 in coin to be cashed in. The process takes about three minutes, which means banks have a captive audience for cross-selling services. That, says, Douglas Magee, president of Magner Corp., explains the increased interest in flat screen displays attached to coin counters. One of Magner’s units with such a display is pictured at right. Banks are not simply buying a coin counter now, says Magee. The units have become part of a coordinated marketing plan to attract and retain customers. Silver lining? There are some self-service hot spots here, of course. Coin counters are a prime example. “Coin counters have become 36 NOVEMBER 2007/ABA BANKING JOURNAL Coin counting with intuitive interfaces. Scan Coin North America, Ashburn, Va., has been committed to the bank sector for 20 years. The company’s newest lobby units, the 810, 820, and 830 (pictured here), are outfitted with a touch-screen interface, notes President and CEO Lloyd T. Kaiser. “Obviously, the branch isn’t dead and the coin counter is another way to offer convenience,” says Kaiser. “Also, it can give kids a positive, early bank association.” www.ababj.com/subscribe.html http://www.accenture.com http://www.accenture.com http://www.cumminsallison.com http://www.coinstar.com http://www.coinstar.com http://www.bankofsmithtownonline.com http://www.bankofsmithtownonline.com http://www.selfservicecoin.com/index.html http://www.scancoin-usa.com http://www.scancoin-usa.com http://www.ababj.com/subscribe.html

Table of Contents Feed for the Digital Edition of ABA Banking Journal - November 2007

ABA Banking Journal - November 2007 Contents Editor’s Column Briefing: Good News for Mortgages Sleight of Mind N.Y. Hiring Bonanza May Be Bane Snapshot: A Look at Held-For-Investment Loan Growth ABA Resources ABA Chairman’s Position “The Moose Bank” Thrives on Manufactured Housing Loans Finding the Middle Way for Your Bank’s Retirement Program Pass the Aspirin Cover Story: Self-Service Steps Up DIY U.K. Style Marketing to Millennials Getting Real With “Gen Wired” Ethnic Marketing: Disinterested Banking Getting Good at Global Sourcing Case in Point Turn Compliance on It's Head Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - November 2007

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