How can bank kiosk market growth benefit your retail store?
The global banking kiosk market is poised for tremendous growth over the next decade. Research and Markets predicts the market will expand at a compound annual growth rate (CAGR) of 15% between 2023 and 2030. This rapid expansion presents a lucrative opportunity for retailers to bring self-service banking kiosks into their stores.
What are the key drivers of banking kiosk growth and how can retailers capitalize on this trend to boost revenue, better serve customers, and streamline their operations?
The Banking Kiosk Market: Key Segments Driving Growth
The banking kiosk market consists of two main segments – ATMs and financial services kiosks
ATMs are the largest and most established kiosk segment. The standard functionality of these machines includes cash withdrawals and balance inquiries. Some have additional functions such as cash or check deposits.
Financial services kiosks go beyond the ATM transaction. These kiosks allow users to perform more advanced functions such as money transfers, bill payments, check cashing, and opening accounts. Systems like Cash Depot’s BANK IN A BOX can add even more services, like mobile or prepaid top-ups or even links to insurance and loan businesses. These connections can allow consumers to use the machines to file insurance claims, pay their insurance and loans, as well as pull funds for payouts.
With so many convenient services, it’s hardly surprising to discover financial services kiosks are seeing the most robust growth. And this growth is being driven by rising demand from key demographics including Millennials, who are highly receptive to self-service options.
How Can Retailers Benefit from Banking Kiosk Growth?
There are several compelling benefits for retailers who deploy self-service banking kiosks in-store, including:
- Alleviating staffing pressures. Like many industries, retail struggles with labor shortages. Banking kiosks allow stores to move low-value transactions like money transfers and bill payments to automated self-service. This frees up staff for more important tasks like customer service. It also reduces payroll expenses and eliminates the possibility of cash-handling errors with these transactions.
- Meet customer demand. Consumers increasingly prefer self-service for convenience and speed. Over half (51%) of banking customers have used a self-service kiosk. And 40% of consumers say they favor self-service over staff interaction in stores. In addition, consumers who prefer self-service actively seek out locations that offer that feature, making retailers with banking kiosks even more attractive as a one-stop destination for convenience products as well as financial transactions.
- Attract Millennial customers. 68% of Millennials have used retail banking kiosks for services like getting cash, sending money, and paying bills. The ability to handle these potentially sensitive financial services without less likelihood of judgement from others is a draw for many in this demographic. Meeting this preference for self-service can continue to pull in crucial Millennial spend.
- Boost revenues. Retailers hosting financial kiosks can enjoy new revenue streams through transaction fees for additional services. Multi-denomination cash dispensing, a feature in financial kiosks like BANK IN A BOX, also help lift ATM transaction volumes 2-3%. Most importantly, the addition of banking kiosks gives shoppers yet another reason to visit and spend money in-store.
Choosing the Right Banking Kiosk Partner
Selecting the right banking kiosk is crucial for a successful deployment. Retailers considering adding new self-service options in their stores should consider:
- All-in-one functionality. A single financial kiosk should be able to host a wide range of operations such as bill pay, money transfers, and more.
- Program integration and expansion opportunities. Advanced systems like BANK IN BOX have been built with flexible platforms allowing for customized and expanded capabilities – so a single machine can continue to meet consumer preferences and demand even as it changes over time.
- Robust security and compliance standards. It’s not every machine or operator that meets PCI, ADA, processing, and other compliance standards. But customer and store safety should be taken seriously.
- Turnkey management and service. Financial kiosks are new, more robust technology than many retailers are used to hosting. The right partner will have the experience and capabilities to properly maintenance and maintain the equipment and programs they offer.
Start Benefiting from the Banking Kiosk Boom
As banking kiosks proliferate across retail, now is the time for convenience stores and other retail merchants to capitalize on this opportunity. Adding self-service financial kiosks to your locations meets consumer demand for self-service, provides more labor flexibility, drives new revenue, and helps cement loyalty. With the right provider, equipment, and programs, retailers can cash in on the banking kiosk boom.
TLDR: Retailers can benefit from the financial/banking kiosk boom by leveraging systems like BANK IN A BOX to meet consumer self-service demands, draw foot traffic, alleviate staffing pressures, and make more money.