Consumers Have Embraced Shared Branching and Shared ATMs… They Just Don’t Know It Yet!
by: Mark DeBellis, President, PSB Integrated Marketing
I talk with many marketers around the country and they love the idea of shared branching and ATMs. But many do face skepticism from new members when the discussion of shared branching comes up. Some members just aren’t friendly towards the notion of doing their banking at a different location.
I haven’t seen the hard research so I’m not sure why. I guess it’s probably a trust, convenience or security/privacy concern. No easy hurdle there.
But I’ve seen another business model developing a healthy following recently that provides anecdotal proof that this shared branching thing will work. And will prosper.
It’s called Red Box video rentals.
Here in California we have seen the Red Box video rentals in just about every supermarket. Even Target and Wal-Mart.
In 2011, Red Box reported a growth of 29% over the previous year. They currently have an excess of 30,000 locations around the country.
With the projected decrease of branch banking and traffic falling, electronic and kiosk banking are just one step removed from a video rental experience.
Red Box has proven that they can manage both the logistics (you can rent from any Red Box and return to any Red Box) and the inventory (using a technology that tracks the DVD). All transactions are via credit card and encrypted.
And the entire transaction is generally under two dollars. Talk about convenience and efficiency!
The next time a member voices a concern about a shared branch or ATM transaction, ask them if they have ever rented from Red Box. They are already early adopters!
Mark DeBellis has spent over half of his life in the Marketing profession and in the promotion and management of consumer brands and services. He seeks new ways to provide value-added services and product marketing strategies for PSB’s financial service clients. As a full-service provider, PSB Integrated Marketing offers creative concepts, graphic design and layout, in-house prepress, and on-site lithographic/digital printing, bindery in addition to secured mail house services in their Orange County, CA facility. Mark DeBellis is President of PSB Integrated Marketing and can be reached at markd@psbonline.com; www.psbonline.com.
