Enhancing Self Service ATM Machines to Curb Customer Churn

Sectran Security

Do you have one of those self-service ATMs near your home that are always without cash? Not only you, but almost everyone will have a negative impression of the bank. Many will phone their call center to complain, adding to the customer service team's work burden. Some will go to the nearest branch to cash a check instead. Others will be so irate the second or third time it happens that they will close their account with the bank.

Find a vendor with a holistic solution.

Banks that realize early there is a problem in their ATM cash management process should act quickly. If they can't pinpoint the problem or don't have the solution internally for the issue, they should outsource their ATM management to a reliable vendor. The first choice should be a vendor that is tried and tested. Preference should be a single vendor who can handle maintenance and replenishing cash in the numerous ATMs.

Some banks in California have outsourced their vault management and cash logistics to an armored car service that offers related solutions. They are lucky that a vendor in their state offers various interlinked services to smoothen the ATM cash management process. The business relationship between the bank and the vendor started with armored car services for transporting large quantities of cash. Then they realized that digital banking is becoming big, and there is no requirement to keep more than a couple of hundred thousand dollars at a time in their in-house vault. The vendor offered cash vault services, which they found ideal for their need. As the vendor realized they could add ATM management services to their business, the bank agreed to outsource their entire ATM cash management process.

The outcome of this business relationship between the bank and the armored car service vendor was very fruitful. The vendor undertook everything from collecting cash from the bank to replenishing cash in self-service ATMs. Money that was not required stayed in the vendor's high-security vault. By studying reports and analyzing future customer demands, they calculated when to shut ATMs for maintenance and how much money was required in each kiosk. The armored car team was used for two purposes, collecting money from the bank's vault and transporting it to various ATMs across the city.

Is there ROI when working with vendors?

Within a few weeks, the number of customer complaints at the call center dropped, and churn rates decreased. Without ATMs to manage and an almost empty vault, employees at the bank could finally focus on their core activities. Their self-service ATMs' popularity was increasing, and customers started looking for other services from the bank. It was a win-win situation for everybody. The bank was gaining trust from its customers, and the vendor was making optimal use of their vaults and armored cars with better profitability.

In a few months, the bank started to see a return on investment from their outsourced business in the form of new customers. Existing customers applied for services like credit cards, safe deposit boxes, and loans advertised on the self-service ATMs' screens.