America is going back to basics. A slowed economy and the horrific events of Sept. 11 have caused many of us to re-evaluate choices and change our behaviors to bring a stronger sense of safety and security to our daily lives.
So it's not too surprising that, in the wake of the attacks, one in four Americans started keeping more cash on hand. What's more, 21 percent of the 1,250 people we recently surveyed nationwide plan to increase their use of cash over the next six months.
As the oldest payment method, cash is also the most positively regarded payment choice with respect to speed, comfort, and ease of use - the three most important factors in determining which payment method a consumer will use. In addition, cash is the most widely accepted form of payment, which makes it even more valuable in times of uncertainty.
To satisfy their increased need for cash, consumers have several options available to them: debit with cash back, a trip to their local bank or larger cash withdrawals upon each ATM visit. However, while the increase in the demand for cash signals an opportunity for ATM deployers, it has not yet translated into significant volume growth.
According to our study, 78 percent of survey participants reported no change in their ATM use in the weeks following the attacks, while 17 percent indicated that they have used ATMs less often. Only five percent of respondents visited the ATM more often after Sept. 11.
How should ATM deployers position themselves to capture their fair share of this increased need for our oldest liquid asset? By appealing to a consumer's need for reliability, safety and certainty.
During a period when many more consumers are concerned about safety, they want to know that cash is available to them whenever and wherever they need it. If there is ever a time to ensure the reliability of your network, that time is now.
As a deployer, your message should be simple: customers can rely on you.
Dove Consulting is a Boston-based strategy firm specializing in market growth strategies and organization effectiveness. Dove's Financial Services practice is renowned for its expertise in e-payments, retail banking and distribution, and Internet and online financial services. American Express, Bank of America, Capital One Financial, Charles Schwab & Co., Diebold, eBay, S1 Corporation and Boeing are among the clients served by Dove.
About the authors: Ann Schmitt, a director at Dove Consulting, is an expert in electronic payment systems, including ATM, debit, credit and merchant processing. Jessica Ip is a research analyst at Dove, specializing in survey design, primary consumer research and quantitative analysis.
For more information, contact Ann Schmitt at 303-663-2048
