For retailers and merchants, attracting new customers and retaining existing ones is crucial for success. One innovative way to achieve this is by offering self-service financial kiosks in your retail stores. These kiosks provide a range of financial services, allowing customers to handle their banking needs while shopping, ultimately enhancing their experience and encouraging repeat visits.
Why Financial Kiosks?
Non-bank financial services are seeing heavy usage, especially among the unbanked and underbanked populations. According to the Federal Deposit Insurance Corporation (FDIC), non-bank entities now manage over 55% of mortgages in the US, a significant increase from 11% in 2011.
Perhaps more important, individuals without traditional banking relationships rely almost exclusively on non-bank services for money transmission, check cashing, money orders, and bill payments. This trend is further amplified by the closure of bank branches in rural and urban areas, making access to banking even more challenging.
By offering financial kiosks, retailers can tap into this growing demand for non-bank financial services and attract more customers to their stores. Here are three ways financial kiosks can help retailers achieve this:
Help customers avoid having to switch banks - Switching banks can be a daunting task for many customers, often involving forms and credit checks. Then there is the hassle of updating bill pay services and anything linked to your bank. However, when bank branches close, most consumers are left with no choice but to move financial institutions. By providing financial kiosks, retailers can offer their customers an alternative solution, allowing them to access their accounts and conduct basic banking transactions without having to switch banks entirely. This convenience can foster customer loyalty and encourage repeat visits to your retail stores.
Provide much-needed account access beyond standard ATM options - While ATMs offer basic cash withdrawal and deposit services, financial kiosks take it a step further. These kiosks allow customers to check account balances, transfer funds, pay bills, and even apply for loans or open new accounts. By offering a broader range of banking services, retailers can cater to a wider customer base and position themselves as a one-stop-shop for both shopping and financial needs.
Appeal to consumer self-service preferences and serve the unbanked and underbanked - In today's fast-paced world, consumers increasingly prefer self-service options that offer convenience and flexibility. Financial kiosks align perfectly with this trend, allowing customers to manage their finances on their own terms, without the need for human interaction. They even provide a modicum of privacy – rather than having to deal with busy staff at a service counter.
Moreover, these kiosks provide a viable solution for the unbanked and underbanked populations, who often face barriers to accessing traditional banking services. By offering financial kiosks, retailers can tap into this underserved market and attract a new customer base.
Incorporating financial kiosks into retail stores is a strategic move that can significantly enhance the customer experience and drive foot traffic. As retailers seek to differentiate themselves and cater to evolving consumer preferences, embracing innovative financial solutions like these kiosks can give them a competitive edge in attracting and retaining customers.