Coinstar Moving Into Banks
Coinstar introduces new Madison model to deploy within retail financial institutions (ie your bank on the corner). Those institutions have seen a lot of changes in their traffic/customers and this is reasonable attempt to provide additional services though hard to say how much it impact their bottom line or retain/create customers. It is a definite step forward though in many other ways.
Payments News: Coinstar Announces Financial Institutions Solutions, FDC/Star Agreement - October 26, 2006
Coinstar Announces Financial Institutions Solutions, FDC/Star Agreement
Tags: Coinstar, First Data Corp.
Coinstar has announced a new Coinstar Direct Coin Deposit service that will allow bank and credit union customers to electronically transfer coin into their personal accounts. In addition, Coinstar’s making available a new "Madison" coin-counting kiosk specifically designed for retail financial institution branches.
Coinstar’s new product line has been developed to enhance customer acquisition and retention strategies for financial institutions while reducing the costs inherent with self-service coin counting.
“Banks are learning that one of the keys to more effective selling at the branch is the intelligent use of automation with self-service devices. The use of appropriate technologies to let customers help themselves at the branch allows staff to focus more on the relationship aspects of banking,” said Jerry Silva, Research Director, Retail Banking and Delivery Channels at the TowerGroup.
Coinstar Direct Coin Deposit Service
Enabled through First Data’s STAR® Network, Coinstar’s Direct Coin Deposit service is expected to be available to banks and credit unions in the first half of 2007. It is estimated that implementing a new technology can take banks between 12 to 18 months to get up and running; the Coinstar solution can be up in weeks, which can significantly reduce implementation costs.
For customers, Direct Coin Deposit is easy to use. Customers simply pour their loose change into the Coinstar kiosk, swipe their bank-issued debit card, and enter their PIN number to have the value of the change deposited into their account. A voucher will be dispensed verifying the amount of the transaction. The process is completely self-service and no teller interaction is required. Banks and credit unions offering the service will determine if a fee will be charged to the customer for the transaction.
Smaller, quieter coin-counting kiosks
Designed specifically for the bank environment, the new Madison kiosk is Coinstar’s smallest and quietest kiosk and can be customized to complement the financial institution’s company branding and look and feel. The Madison kiosk comes in two sizes, with the smallest having a footprint of just over five square feet.
“The turnkey – no hassle – model that Coinstar is known for allows banks and credit unions to bring in valuable services for their customers, while keeping the labor and cost at a minimum,” said Alex Camara, senior vice president and general manager of worldwide coin at Coinstar, Inc. “In addition, we estimate that there is over $10 billion in idle change in the U.S. that can be turned into valuable deposits for retail financial institutions.”
Coinstar’s turnkey, owner-operator model significantly decreases costs and hassles for financial institutions. Benefits include:
* No capital outlay
* Trained Coinstar field technicians install and maintain all equipment
* Networked machines and preventative maintenance minimize downtime
* Efficient accounting and reporting
* Built-in fraud protection
* Minimal labor requirements
The Madison kiosk is expected to be available in December of this year and the Direct Coin Deposit service is expected be available the first half of 2007.
Posted by staff at October 28, 2006 08:28 AM