Blog: Bridging the Physical and Digital Worlds at the ATM to Improve Financial Inclusion

Just now, your mind may have conjured the image of an older person. Perhaps a stereotypical grandma who whips out her wallet to count out the exact amount in coins to pay for her purchase. This is a common bias but does not actually reflect reality. Traditional client segmentation applied to understand consumer needs often starts with demographics – defining the “Who” by categories like age, as we just did in this example. But reality and people are more complicated than that.

So, what is the reality of digital versus physical preferences?

The Surprising Role of Cash and Physical Channels Among Gen Z Consumers

Several surveys indicate that large parts of younger populations view physical channels as critical to their banking experience – while simultaneously being strong adopters of digital channels. While often portrayed as digital-first consumers in one survey, 70% of Gen Z stated they were against a cashless society, for example – in that survey¹ they were the second strongest promoters of cash – more than millennials and Gen X.

Consequently, it’s not just older demographics that demand physical access to financial services.

Maintaining a Balance Between Digital Innovation and Physical Accessibility is Key

We’ve seen that it’s not just older generations who are averse to digital channels, so your long-term strategy can’t be to wait until that group disappears and then go all-digital. This presents a challenge, particularly concerning the interplay of the digital and physical landscape. Many individuals – today and tomorrow – may not feel entirely comfortable exclusively utilizing digital channels for their everyday banking needs. Simultaneously, banks are compelled to develop innovative services to meet the evolving expectations of digital-first consumers. In navigating this dynamic landscape, self-service and mobility emerge as pivotal elements to cater to the diverse needs of different consumer groups. More digitally leaning consumer groups often demand seamless and mobile-centric banking experiences, while others seek more traditional and advisory-focused services. Striking a balance between these contrasting needs becomes imperative for banks seeking to differentiate themselves in an increasingly competitive landscape.

How Self-service Channels Maintain a Balance Between Digital Innovation and Physical Accessibility is Key

Almost all consumers use the self-service channel. It is the most widely adopted touchpoint in the banking journey and a bridge between the digital and physical channels. By forging strategic connections between these channels, you can cultivate a holistic and inclusive space that caters to consumers’ diverse preferences and technological comfort levels.

Consider un- or underbanked people who are less familiar with financial services overall and may have a lower familiarity with digital channels. In gaining knowledge about financial services, they may have become familiar with the ATM as a cash point. The ATM can become a gateway to offer other financial services as well. It’s a great way to get started, as users can take their time to navigate through transactions. Should they encounter any problems they could use video teller or other assistance functionalities—a digital transaction at a physical touchpoint with a human touch.

DN Series^® ATMs with Vynamic^® Transaction Automation, powered by Vynamic Transaction Middleware, provide the ability for consumers to receive assistance from bank staff while using a self-service device. Assist capabilities are powered via APIs and can be triggered in the form supported by the bank (e.g., chatbot, tablet or video on demand). For this and other reasons, DN Series ATMs are a great way to provide an engaging experience to consumers – unrelated to their preferences regarding digital channels. If you’d like to learn more, have a look at DieboldNixdorf.com/DNSeries.


Sources:
1 Markets Insider