Bank of England highlights the importance of ATMs

A recent speech by Andrew Bailey of the BoE touched on some interesting points. Cash is far from 'dead' as there are still some £45bn in notes in circulation and this number is rising despite the fact that cash is used for 60% of transactions compared to over 80% in the 1980s. This 'paradox' as Mr Bailey describes it is explained by the fact that the public still trusts cash and, given the low interest rates and current economy, see cash as a way to store value. This echoes some research we commissioned last Christmas when we surveyed consumers attitudes to spending. We found that consumers felt most comfortable making Christmas purchases with cash to control their spending, rather than using cards, at a time when budgeting is highly important.

Mr Bailey then went on to talk about the need to get more £5 notes in circulation as there is a high public demand for these.

The speech has some implications for the UK's ATM deployers. ATM withdrawals account for around 70% of cash acquisitions compared with 25% in the 1990s and, as a result, it is now more important than ever to keep this cash dispensing network available. This requires banks to implement extensive testing and monitoring for their ATM networks. Moreover, banks and IADs need to keep a close watch on bill mix combinations, and test these thoroughly, to ensure that demand for £5 notes is satisfied. Mr Bailey’s speech has clearly highlighted the strategic importance of the ATM channel and the visibility that any downtime will attract.

Ian Kerr

The ATM is critical at Christmas

The other day Visa predicted that the busiest time for high street shopping will be December 23 - the final weekday before Christmas Eve. The company expects to process over 17 million transactions in the UK worth over £860 million on this day alone.

As consumers hit the high street, the ATM will be a vital service for many shoppers. In fact, last year Level Four’s research found that shoppers favour cash over credit cards to manage their budgets at Christmas. Even though ‘green shoots’ are appearing it is highly likely that the same feelings will apply this year as well. As banks look to increase consumer trust and loyalty, it is essential that ATMs are up and running to ensure that they adequately meet consumer needs.

In order to ensure banks cope with this spike in withdrawal volumes they will to not only increase the levels of cash stored in the ATM or alternatively provide for more frequent cash replenishment, they will also need to look at preventing ATM downtime. Providing the best possible service is essential to maintaining brand reputation, especially at Christmas when the volumes of consumers are larger, and stress levels are typically higher. To provide this service, banks should be prioritising comprehensive ATM testing and monitoring strategies at this time as part of their ongoing campaigns to maximise the potential of their ATM networks. Whilst providing excellent service at the ATM is important at all times, it is clearly essential in the run up to Christmas

Ian Kerr