New Trends Underscore Role of Surcharge-Free ATM's

  • ID: 4088989
  • Report
  • Region: United States
  • 14 Pages
  • Mercator Advisory Group
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Market Trends Suggest it is time for Banks and Credit Unions to take Another Look at Cash Access Strategies

FEATURED COMPANIES

  • Allpoint
  • CO-OP
  • CU 24
  • Fifth Third Bank
  • Fiserv
  • Kroger
  • MORE

While other countries look to discourage reliance on cash, consumers in the U.S. continue to include cash in their day-to-day payment transaction mix. The use of cash permeates across generations, suggesting that although cash use has seen a small decline in use, it will still play an important role for many years to come.

The latest report, New Trends Underscore Role of Surcharge-Free ATMs, provides an understanding of cash usage in the U.S., the reasons that financial institutions of all sizes are latching onto surcharge free networks, and a discussion of the small group of market providers for these services.

"Smaller institutions, online-only banks, and alternative financial product providers have been the traditional buyers of surcharge-free ATM networks to offer cash access points that could rival big financial institutions. Now, with new trends such as the rising expense of surcharge rebate programs and a desire to get out from underneath the overhead expense of managing off-premise ATM fleets, very large financial institutions are embracing surcharge-free as a lower-cost option", comments Sarah Grotta, Director, Debit Advisory Service and the author of the report.

Highlights of the report include:

  • Trends in cash usage in the U.S.
  • Channels U.S. consumers use to get cash.
  • The influence of convenient cash access has on the choice of a financial institution
  • Recent trends that are influencing the use of surcharge-free strategies by larger banks and credit unions.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Allpoint
  • CO-OP
  • CU 24
  • Fifth Third Bank
  • Fiserv
  • Kroger
  • MORE

1. Executive Summary

2. Introduction

3. For the Love of Cash

4. Getting Cash

5. The Market for Surcharge-Free ATMs

6. New Trends Have Big Banks Looking at Surcharge-Free Networks

  • Shrinking Branch Networks
  • Consideration of Off-Premise ATMs as a Core Competency…or Not
  • Merchant Pullback on Cash Back at the POS
  • Surcharge Rebate Programs Reach a Tipping Point

7. Making the Business Case for Surcharge-Free ATMs

  • Questions and Details to Consider
  • Expense Items Entailed

8. Market Providers of Surcharge-Free Services

9. Conclusions: Thinking About Cash Strategically
Endnotes

List of Tables & Figures
 
Figure 1: 52% of U.S. Consumers Spend $50 or More in Cash Each Week
Figure 2: Average Number of Withdrawals per Month by Channel
Figure 3: Word of Mouth, Location Visibility, and Better Offers or Fees/Rates Are Top Influencers to Switch FIs
Figure 4: Most Consumers Avoid Paying Surcharges for ATMs, and 18% Get Reimbursed
Figure 5: Number of Branches of FDIC-Insured Financial Institutions in the United States, 2006-2015
Table 1: Surcharge-Free Network Providers

Note: Product cover images may vary from those shown
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  • Allpoint
  • CO-OP
  • CU 24
  • CVS
  • Citibank
  • Costco
  • Fifth Third Bank
  • First Tennessee
  • Fiserv
  • Green Dot
  • Kroger
  • Mastercard
  • Safeway
  • Star SF
  • Target
  • Visa
  • Walmart
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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