Contrary to popular belief, millennials are fairly heavy cash users, particularly in the United States, according to a Federal Reserve study. And to manage their finances, they have a preference for ATMs and online banking instead of branch visits. Data shows that ATMs are still a central part of banking transactions, even for younger consumers. Yet, to maintain cash machines competitive, PaymentsSource offers a number of easy fixes based on observed data.
For example, 46% of millennials switched banks due to ATM surcharge fees sending a signal that financial institutions should seriously consider joining surcharge-free networks and offer their customers free access to their money. This data could also benefit the UK in the current debate about LINK and their plan to lower fees paid by banks to run ATMs – a drop in costs that will inevitably affect the final user: consumers.
Furthermore, millennials have proven to be much more loyal to brands if these are capable of telling a compelling story while offering affordable and quality services. A great way to gain visibility is to provide branded ATMs at local events known to attract this age group.
In an age where an almost dizzying amount of payment tools are available, banks should consider promoting all the services that are available to them, particularly when these respond to the needs of their existing customers or lead to overall customer loyalty.