Self-Service Coin-Counting Machines Could Represent $500 Million Market for U.S. Banks
This entry was posted on 10/30/2007 11:19 AM and is filed under Technology,Branches.
October 29, 2007: PRNewswire — All those nickels and dimes add
up to big business in the U.S. when it comes to self-service
coin-counting machines. Each year, almost $3 billion (USD) in coins is
redeemed at supermarket machines alone, generating a steady revenue
stream of service fees as well as the opportunity to capture additional
money from consumers while they are in store.
Despite various attempts to legislate the elimination of the penny
or nickel, coins are not going away anytime soon. New research from
TowerGroup estimates that nearly $6 billion in coins are brought into
U.S. bank branches annually. If banks charged customers the same fee
that retail locations charge for coin redemption, the service would
represent a $500 million market for banking institutions.
In the face of declining check volumes and increased focus on sales,
banks must better leverage automation where appropriate to support the
needs of both the customer as well as their own bottom line. TowerGroup
believes that the self-service coin-counting machine can support a
bank's critical business, operational, and marketing strategies — but
only if it is implemented with the appropriate technology and process.
Helping customers off-load the "idle" coins in their homes and
pockets will become more relevant as consumers turn increasingly to
non-cash payment alternatives like debit and prepaid cards. The
underlying technology of the self-service coin-counting machine has
changed significantly since the initial deployments by banks, and
today's devices deserve a second look by the banking industry as a
service to themselves and their customers.
The TowerGroup ViewPoint, titled "Self-Service Coin Counting at the
Branch: Time to Change Attitudes About Loose Change," is authored by
Jerry Silva, research director in TowerGroup's Delivery Channels
practice.
