opinion
Self-service
technology
Could this be the win-win banks and customers have been waiting for?
By Neill Malcolm Harris ,NCR Product Marketing Director for ATM Solutions
According to Accenture’s ‘The Untapped
Win-Win in Self-Service Banking’ report
noted that US banks spend approximately
$13 billion a year, employing roughly
514,00 cashiers. Furthermore, 50% of
branch space is dedicated to counterrelated activities.
Yet, these services rarely generate
enough revenues to offset costs and
digital deposits are 95% cheaper to
process than face-to-face transactions.
Moreover, online payments reduce
physical cheque deposit costs by 65%.
Self-service technology can therefore
enable businesses to redirect budgets
into value-creating investments, such
as boosting customer relationships,
designing better products and
restructuring their physical store network.
But are consumers as keen to embrace
the DIY trend?
Convincing consumers
Research suggests the public response
to self-service can be dependent on
the bank’s method of delivery. Assistant
professor at Harvard Business School,
Ryan Buell told the Harvard Business
Review that a study he and colleagues
had conducted discovered consumer
satisfaction with a bank declined as more
20 KIOSK solutions
interactions moved from face-to-face to
self-service channels.
“I think one reason could be that
automation sometimes obscures the
work that’s being done for us,” he
explained. “When we’re interacting with a
person, we can see what’s being done to
create value for us.”
According to Accenture, some banks
have failed to achieve the full potential
offered by self-service technologies. This
is typically due to the implementation of
new solutions rather than the technology
itself, with organisations perceived to be
offloading time-consuming and expensive
tasks onto their customers.
The most successful adopters of
self-service technology take a different
approach. Instead of forcing consumers
to switch to DIY banking, businesses
should identify features and functions
that people feel are valuable.
“Start with the customer. Develop
and refine a clear migration strategy, and
introduce simple solutions that customers
want and can control. It’s a win-win,” the
report’s authors stated.
driver of satisfaction when dealing with
providers, while 32% opted for the 'ease
of doing business.'
Self-service technology taps into
both these trends, meaning banks must
choose solutions that are geared
towards ease-of-use and ensure
consumers can control the interactions.
Opt-in services help drive adoption
and prevent unwanted disruption for
consumers who are resistant to change.
Ultimately, the future is bright for
the self-service technology industry.
Recent P&S Market Research figures
showed the sector’s revenues will nearly
triple from $15.9 billion a year in 2015
to more than $42 billion in 2022. This
represents a compound annual growth
rate of 15.6 percent over the eight-year
period.
However, banks wishing to take
full advantage of these opportunities
will ultimately need to deliver the best
technologies in the right way. This will
ensure that customers embrace selfservice as a convenient alternative to
traditional human interactions.
Understanding consumer trends
Accenture revealed 26% of banking users
feel the digital experience is a primary
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