Article

The case for self-service coin counting at the branch

As FIs sharpen their focus on enhancing the consumer experience through self service, it's an idea worth exploring.

November 26, 2013

by Jim Weaks

Vice President, Business Unit Manager, Cummins Allison

Approximately 80 percent of American households actively save loose change and look to their financial institution to count this saved coin, according to research by creditunions.com. Savvy FIs are catching on to this trend and many now offer coin-counting machines in the lobby. Here's why:

It matters to the customer

Sixty-four percent of people who save coins redeem them for cash at financial institutions. Clearly, consumers are looking to their FIs to help them turn this "found money" into funds that can be deposited or used for other purposes. 

According to CreditUnions.com, of the people who save their spare change, 90 percent would redeem their coins if a free coin counting machine were available at their local credit union.

A recent study revealed that after using a self-service coin machine just one time, 54 percent of credit union members would "definitely" use the machine for future coin redemption or coin counting needs, according to the 2011 BranMark Strategy Group study, "Views and Experiences with Self-Service Coin Counting Machines."

With a self-service option in the lobby, members no longer have to count and wrap their coins, they can avoid standing in a teller line while holding a heavy coin container and they can have a faster, more meaningful exchange with the teller when they cash in their coin redemption receipt.

It can benefit the FI

Self-service coin machines can drive branch traffic and attract new members or customers.

What's more, consumers who have a positive experience with their FI's self-service facilities are also more likely to spread the word to others in their community, leading to increased awareness of, and interest in, the institution.

In short, self-service coin machines can serve as a point of differentiation for an FI.

Of course, not all FIs have the budget to purchase coin counting machines — or the desire to provide maintenance for an additional self-service device. But, as with ATMs and other equipment, ownership is just one of several approaches to adding self-service coin counting. Following is a full list of options and benefits:

• ownership — FIs  can maximize long-term profitability and ROI through self-service coin machine ownership;
• lease — frees lines of credit and allows retention of capital so the FI can generate earnings while maximizing the profit of ownership;
• rental — with a fixed monthly payment, the FI can set user fees to retain profits; and
• placement — no investment is required; the vendor or service provider places and manages the coin counter free of charge, allowing the FI to offer a desired service without capital outlay.

Enhancing the consumer experience is the No. 1 priority for FIs of all sizes. Investing in technology that helps them meet this goal is the key to customer satisfaction and brand differentiation.

Jim Weaks is responsible for the self-service coin business unit at Cummins Allison. He develops strategic sales, marketing and customer support initiatives focused on the financial, retail and gaming markets.

Read more about bank automation.

photo: Jason Rogers