Press Release
TOWERGROUP: SELF-SERVICE COIN-COUNTING MACHINES COULD REPRESENT $500 MILLION MARKET FOR U.S. BANKS
NEEDHAM, MA, October 29, 2007 - All those nickels and dimes add up to big business in the U.S. when it comes to self-service coin-counting machines. Each year, almost $3 billion (USD) in coins is redeemed at supermarket machines alone, generating a steady revenue stream of service fees as well as the opportunity to capture additional money from consumers while they are in store.
Despite various attempts to legislate the elimination of the penny or nickel, coins are not going away anytime soon. New research from TowerGroup estimates that nearly $6 billion in coins are brought into U.S. bank branches annually. If banks charged customers the same fee that retail locations charge for coin redemption, the service would represent a $500 million market for banking institutions.
In the face of declining check volumes and increased focus on sales, banks must better leverage automation where appropriate to support the needs of both the customer as well as their own bottom line. TowerGroup believes that the self-service coin-counting machine can support a bank's critical business, operational, and marketing strategies - but only if it is implemented with the appropriate technology and process.
Helping customers off-load the "idle" coins in their homes and pockets will become more relevant as consumers turn increasingly to non-cash payment alternatives like debit and prepaid cards. The underlying technology of the self-service coin-counting machine has changed significantly since the initial deployments by banks, and today's devices deserve a second look by the banking industry as a service to themselves and their customers.
The TowerGroup ViewPoint, titled "Self-Service Coin Counting at the Branch: Time to Change Attitudes About Loose Change," is authored by Jerry Silva, research director in TowerGroup's Delivery Channels practice. Members of the media may contact Lisette Kwong at +1.212.642.7753 or Lisette.kwong@edelman.com to review the new research report or to arrange an interview with Silva. Those interested in purchasing a copy of any TowerGroup report or subscribing to a TowerGroup research service may call +1.781.292.5200 or email service-info@towergroup.com.
At TowerGroup, Silva oversees research in the areas of core banking, transaction processing, customer information and relationship systems, and customer interaction systems.
Mr. Silva will be onsite at the BAI Retail Delivery Conference & Expo in Las Vegas, NV, on November 13-15, 2007, and is available for one-on-one interviews.
About TowerGroup: TowerGroup is the leading research and advisory services firm focused exclusively on the financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America and Europe, TowerGroup serves a global client base. Visit www.towergroup.com for more information.
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