Viewpoints

The buzz around the cashless society concept has been growing for years. Almost every day there is a news story about bank branches closing at a fast pace, ATMs disappearing from the streets, shops and restaurants around the world going cashless.

Despite the growth in the number of non-cash transactions in recent years, cash remains the most frequently used payment method in the US. Boris Demin, Vice President & Managing Director, Americas at Compass Plus Technologies, discusses how FIs can utilise the ATM to enhance customer experience.

In a time where the use of contactless payments rising globally, Germany still remains a predominantly cash-based society. A recent survey by Bundesbank, Gemany’s central bank, revealed that most Germans prefer using cash for small to medium sized transactions. What is more, many convenience stores and restaurants nationwide will only accept cash. It is payment security and transaction costs that are the top priorities for consumers and retailers respectively, while the convenience of a quick tap of a card or a mobile phone is not essential.

Recent news released by Action Fraud revealed that, from April 2017 to January 2018, the number of contactless card fraud cases reported in the UK had nearly doubled compared to the same period the previous year.

It won’t come as a surprise to learn that the US is the country most targeted by fraudsters looking to steal card data, with the UK not far behind in second place.

The results of a survey released by Valassis this week revealed that almost a third of US consumers don’t feel any loyalty to their bank, with 10% of respondents planning to switch their bank within a year. Kirsty Berry, Head of Marketing & PR at Compass Plus Tecnologies, compares bank customer loyalty in the US and UK.

For traditional banks, the growth of mobile technology – and the rise of digital-only banks – is often cited as a reason for the significant rate at which their branches are closing. Since 2007, nearly 50,000 branches across Europe closed their doors for good, with banks stating that this is due to the falling number of customers using their brick-and-mortar establishments. As a result, traditional banks seem to be diverting their attention increasingly towards their digital offering, but does this shift in focus spell the end for the physical bank?