Banking Review

Cash machines & the credit crunch

Here are two startling different approaches to customer concerns in the current economic climate.

The UK’s leading independent ATM operator, Cash Machine has taken an innovative approach the credit crunch. Cash Machine has begun installing ATMs that dispenses only £5 notes instead of the usual £10 or £20 notes.

In the days before ATMs, EFTPOS and supermarkets taking credit payments, customers could only spend what they have withdrawn from their branch. Over spending and a more frugal approach to purchasing was not conscience customer behaviour; it was just how money was managed.

Cash Machine has identified that customers tend to spend what they have; thus if they have less cash, they will spend less. Cash Machine has said that introduction of the £5 dispensing ATMS is designed to help customers manage their spending in tougher economic times.

Whether increasing the volume and availability smaller currency notes will have an impact on customer spending behaviours remains to be seen. Cash Machine has, however, provided a thought provoking approach to customer sentiment in the current market.

Compare this customer centric approach to the fantastic example of ‘unknown unknowns marketing’ or ‘customers don’t what they don’t know’, in this recent tale of banking woe from the Head of Email Marketing at NCR in the US.

As the fallout from the credit crunch continues unabated, more tales of innovation and customer frustration will no doubt come to light.