The ARCA Recycler Newsletter 

We know you don't have time to keep up with the latest news and research on cash trends. As your cash automation experts, it's what we do. The Recycler monthly newsletter is one way we keep you informed of what's happening in cash management for the retail and financial industries.

November 2018


Customer research and cash data about banks and retailers in The Recycler

Rather than curling up next to the fire with a good book, our team has handled the cold weather snap by sitting down to read some research reports, consumer surveys, and success stories. Instead of plot twists and character arcs, we've got consumer preferences and cash studies. While wishing you a coffee in hand, here's what we've been reading lately:

Expectations & Experiences: Channels and new entrants
Everyone knows this but it's good to repeat from time to time: the branch still matters. In fact, 52% of consumers have visited a branch within the past month while 80% have done so in the past six months. Fiserv gets answer to why people still visit the branch and a lot more in their Channels and New Entrants survey. [From Consumer Bankers Association]

People prefer small banks and credit unions, but the clock is ticking
Large national institutions have a better digital experience while smaller banks and credit unions have better customer service. These statements feel familiar, but the interesting takeaway from this assessment is that most institutions are not winning the personalization game. FIs are not anticipating their customers' financial needs despite firmly holding customers' trust. [From The Financial Brand]

Universal truths of universal banking: Three success stories
The one universal truth about universal banking? There is no one perfect implementation or staffing model. Given that, David Kerstein of BAI examines three success stories of universal banker implementation with two banks and a credit union. [From BAI]

Cash costs U.S. businesses $40 billion a year
This article is five years old. But it's one that's worth returning to because it still points out a fundamental issue retailers are still worried about today. Cash is expensive and cash theft plays a central role in those costs. [From Inc Magazine]

Related articles from ARCA



 

October 2018


Banking, cash and statistics with The Recycler

Data and statistics are not scary. At least they shouldn't be. Data and statistics are just more information to help executives make decisions. In this era of "big data," let us share with you some of our favorite recent stories about banking, cash and statistics. So, without any good reason to be scared, here's what we've been reading lately:

Trends in Urban and Rural Community Banks
Earlier this month at the Community Banking in the 21st Century Research and Policy Conference, the Vice Chairman for Supervision at the Federal Reserve spoke in depth about what research data indicates about the health of community banking in rural and urban areas. [From The Federal Reserve]

Attacking the Cost of Cash
While utilizing technology like cash recyclers to streamline processes and reduce cash costs remains a good first step, McKinsey recommends that most banks could drive costs around cash even lower by applying "lean principles to eliminate waste and maximize productivity in distribution centers, inventory management, and transportation." [From McKinsey and Company]

Banks are using Tinder-style apps and in-store tech to drive customers into branches
Bankers tend to overestimate how many people want digital only experiences. Some financial institutions, like Umpqua Bank, are using apps or video technology to help promote relationship banking rather than replace it. [From DIGIDAY]

How Software Ate the Point of Sale
The point of sale for retailers remains a technological wild wild west. [From The Atlantic]

Related articles from ARCA



 

September 2018


Explore customer service with The Recycler

Just because every bank, credit union and retailer have something about delivering great service in their core values doesn't mean they are equipped to make it happen. Banking providers have to reward the loyalty still afforded to them by providing real relationship banking. And retailers need to stop wasting time counting cash and deliver in-person value to customers. Great customer service is hard. ARCA can help. Now, on to what we've been reading lately:

How (and why) consumers and banking providers don’t see eye to eye
New research from Bob Meara at Celent shows that most bank and credit union executives aren't exactly in sync with what their customers want. For example, banking executives overestimated consumer's desire for digital services as a retail delivery method. [From Financial Brand]

The Branch Puzzle: Why are there still bank branches?
Economists ask a simple question: Why are there still bank branches? The answer: Evidence suggests that the large number of local bank branches across the country persist because customers and small businesses "continue to value local bank branches." [From The Federal Reserve]

Do Retail Banks Have A Problem With Relationships?
While digital payments are steadily growing in popularity, cash remains very much a part of consumers’ financial lives even in the least cash-friendly countries. [From Forbes]

Why your managers would love to stop counting money
After surveying 4,000 consumers about different banking channels, PwC finds that a "mobile first" strategy will win the market but traditional banking centers are still important for specific transactions. [From QSR Magazine]

Related articles from ARCA



 

July 2018


Tools to re-engage bank customers
69% of millennials have not received formal financial education. Banks and credit unions could fill that gap, but they must use new tools to move from focusing on transactions to focusing on relationship banking that promotes financial wellness for their customers and members.  [From ABA Bank Marketing]

How to get branch design right in the digital age
More than half of all consumers are still visiting branches at least once a month, some even more frequently than that. [From Financial Brand]

Can cash and digital payments coexist?
While digital payments are steadily growing in popularity, cash remains very much a part of consumers’ financial lives even in the least cash-friendly countries. [From ATM Marketplace]

PwC's 2018 digital banking consumer survey
After surveying 4,000 consumers about different banking channels, PwC finds that a "mobile first" strategy will win the market but traditional banking centers are still important for specific transactions. [From PwC Financial Services]

Related articles from ARCA



 

June 2018


Fintechs and digital-only alternatives face a consumer backlash
The most satisfied consumers — which J.D. Powers calls “branch-dependent digital consumers” — have visited a branch at least twice in last three months. [From The Financial Branch]

Winning the new deposit war
For the past decade, banks have taken for granted the abundance of low-cost deposits. Customers flocked to banks for safety during the crisis, and didn’t see any attractive investments for that money long after the crisis ended. However, there is ample evidence this period of easy deposit growth has come to an end. From ABA Bank Marketing]

Improving customer experience depends on rewriting this rule
Ask your customers to name the most important thing you can do to win their loyalty, and you’ll probably hear, “make it easy for me” as the most common answer. While simple in concept, this is at odds with how most banks serve their customers.[From Bank Director]

A consumer-centric approach to retail banking sales
Good customer outcomes are best achieved by delivering new capabilities, technology, process, and policy changes in a way that the front line can adopt quickly and easily. [From McKinsey & Company]

Related articles from ARCA



 

May 2018


The digital banking imperative
In the age of the customer, banks will either reinvent themselves or be forgotten. [From Forrester]

Bank of America's 500 new branches show the death of the bank branch might be overstated
Branches are still a valuable asset to banks — 60% of US consumers would still prefer to visit a branch, rather than use a digital banking channel, to open a new checking account, according to a Novantas study. [From Business Insider]

    Where stores can still compete - and win
    For all the well-documented challenges and economic pressures of managing brick-and-mortar locations, shopping trends and consumer spend still favor the store. After all, some 80 percent of purchases are expected to still happen in stores in 2020. [From McKinsey]

    The changing face of branch banking
    As an increasing number of consumers use their mobile devices to conduct banking transactions, many wondered if this is the death knell for the physical branch. However, instead of becoming obsolete, brick and mortar bank branches are being reinvigorated by technology. [From DBS]

    Why Amazon is a 'no-go' for most retailers
    Even in an increasingly digital arena, the branch network can play a critical role in building trust and credibility, providing financial advice, offering convenience, and easing the transition to digital channels. [From Chain Store Age]

    Branch Evolution: A NEW APPROACH TO BRANCH TRANSFORMATION [ebook]
    The future of branch banking is unclear. The only thing that's certain is that branch banking is undergoing unprecedented changes. Retail banks and credit unions are scrambling to meet the demands of changing customer preferences. These demands have executives making big bets on technology that may be obsolete before it can generate an ROI. This 34-page ebook examines how cash automation fundamentally impacts retail banking and how to ease into a branch evolution strategy. [From ARCA]

    Related Articles from ARCA