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Story URL: http://www.silicon.com/financialservices/0,3800010322,39168127,00.htm

Are ATMs punching holes in customer confidence?
Don't neglect the hole-in-the-wall, banks told...

By Julian Goldsmith

Published: Monday 13 August 2007

One in three bank customers would switch their account based on the condition of the bank's ATM network, research claims.

According to a study sponsored by ATM software company Level Four, 38 per cent of the 1,000 respondents said they would consider jumping ship if too many of their bank's hole-in-the-wall machines were either out of order or out of cash.

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The reaction is more marked when the respondents are broken down by age, with 43 per cent of bank customers aged between 18 and 24 more likely to consider switching - while 51 per cent of respondents aged over 65 would not consider it.

The researchers said a greater willingness for younger customers to switch their bank if they are not satisfied with self-service facilities should worry banks, which traditionally try to sign up customers when they are young.

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Level Four CEO Ian Kerr said the cash machine remains a key customer touch point for banks today but banks often overlook their cash machines in favour of investing in other channels such as online banking.

It is time for them to devote more attention to the reliability of their cash machine networks, he said.