3 tips to successful deployment of deposit automation
by Mike Ruth, ATM Product Manager, Cummins Allison
Though the concept of depositing cash or checks at the ATM is not new, many community banks and credit unions are revisiting its impact on efficiency, profitability and the customer experience as they work toward achieving their branch transformation goals.
To successfully deploy automated deposit, it’s important to understand how current processes might change, and to prepare employees and consumers for this new and convenient technology.
Following is an integrated approach that financial institutions can follow to effectively roll out automated ATM deposits to both employees and consumers.
The benefits add up
Recent figures indicate that automated deposit costs 90 percent less than a deposit completed at a branch. To be exact, it costs 65 cents to handle a deposit in a branch vs. just 8 cents per transaction at an ATM — cost savings that can significantly impact overall branch profitability.
Additionally, efficiency and service gains can be made by reducing the time tellers spend handling manual transactions and providing customers with an opportunity to make deposits when and how they want.
Prepare your employees
Employee readiness is a critical requirement of a successful automated deposit strategy. This includes a thorough understanding of how the technology will impact current processes and operations, as well as trai.ning on how the technology works.
When branch staff is trained on the ease of making cash and check deposits, it encourages them to embrace the new technology. Hands-on training also enables employees to become familiar with key features and functionality, and empowers them to communicate deposit automation steps to others. If possible, have staff practice with transactions on their own accounts, as they can better assist customers when they are comfortable using deposit automation technology themselves.
Ensure that staff can explain the benefits of deposit automation, including:
- greater convenience for customers;
- greater efficiency than visiting a teller for simple transactions; and
- earlier availability of funds in a savings or checking account.
Once employees have a firm grasp of how automated deposit works, it’s time to develop a marketing plan to educate consumers. A multifaceted campaign should explain what the technology is and how it works, share when it will be available, and encourage consumers to use it.
Materials that help create awareness and interest include banner displays, social media, email, brochures, direct mail, print and digital advertising and step-by-step guides or demo videos.
FIs can also use existing communication channels — such as tellers and branch personnel, in-branch monitors, the web and mobile banking apps — to promote automated deposit availability.
As resources allow, an automated deposit concierge role can be assigned. FIs can dedicate one staff member per branch or rotate staff members to stand near the ATM and provide hands-on support to those customers who are unsure what steps must be performed during the transaction.
Use promotions to encourage adoption
There is always a learning curve when implementing a new technology. Communicating with consumers should result in change, but depending on branch demographics, some consumers might require additional incentives or education to change their behavior.
In these cases, additional promotional activities can help migrate consumers to automated deposit:
- A grand opening can be an effective way to demonstrate the technology at the branch. Both consumers and personnel can get engaged while raising awareness. The event can also attract new customers or members while offering the opportunity to strengthen existing relationships. Giveaways, contests, coupons and drawings can further increase awareness during a grand opening event.
- Promotions can act as an incentive for consumers to try the new technology. For instance, some FIs offer additional credits for every deposit made at the ATM during a specified time frame. The credit can even take the form of a small check sent in the mail that can only be deposited at the new ATM
Automated deposit can transform the consumer banking experience and help FIs meet branch transformation goals — but it will take time and effort to get there.
Companies: Cummins Allison