MAYNARD, Mass. — Research firm Mercator Advisory Group says self-service is being used more often to target underbanked/cash-preferred consumers.
According to its recent report, "Self-Service Kiosks, Bill Pay and Getting It Right," self-service is an effective channel for reaching this untapped market.
"Self-service kiosks have become a creative and effective means of reaching a range of consumers with a cost-effective set of financial services," said George Peabody, director of Mercator's emerging technologies advisory service. "Tools like these extend the capabilities of those selling financial services. Now the race is to see who really picks them up."
Highlights:
- Self-service kiosks offer flexible development platforms, reliable components and provide 24/7 network monitoring and system maintenance.
- Capital-expenditure constraints will slow development of billpay kiosks from previous levels.
- To avoid the CapEx concern, kiosks deployers are shifting their business models toward large, direct billers who take on the initial hardware cost.
- Billpay and other financial transactions at self-service kiosks offer "underbanked" consumers an economically rational alternative to banking relationships.
