Consumers Found Willing to Pay for Expanded Services on ATMs
Epper, Karen, American Banker
Banks may be able to elicit higher fee revenues from customers through expanded automated teller machine and telephone banking services, according to a recent study by Mentis Corp.
Most consumers surveyed by the Salisbury, Md.-based research group expressed great interest in conducting their personal banking business - particularly receiving account statements and ordering new checks -- through ATMs.
More importantly, the Mentis study -- based on a survey of 800 households nationwide conducted in the fall of 1993 -- discovered that ATM users and nonusers alike would be willing to pay for these services.
"The significance for banks is that there is demand out there not only to use these services, but also to pay for them," said Mary Donadoni, a research associate for Mentis.
The demand for enhanced ATM and telephone banking features did not come as a surprise to Ms. Donadoni, but the high percentage of customers who would be willing to pay for services was an unexpected discovery.
For example, the survey found that more than one-quarter -- 28% -- of all the consumers surveyed said they would pay to receive an account statement at an ATM.
Mentis has conducted studies within the financial services arena for more than five years, but this is the research firm's first study based on a survey of consumers.
Unlike many other surveys, this study looked at consumers' attitudes rather than the actual action or patterns they followed, said Ms. Donadoni.
About half the consumers surveyed (52%) said they would use an ATM to order more checks, cash a check (49%), or buy postage stamps (50%). One-third of the households claimed they would use an ATM to pay bills. …