By : Colin Gordon
February 25, 2015 04:07 PM
When the forecast calls for severe cold and snow, it means a real risk that many bank branches could close temporarily. A wave of winter storms threatened cities from Texas to Delaware recently. And last week when much of the northeastern U.S. was hit by up to two feet of snow, cities like New York and Boston went into lock down.
While New York was not as badly hit by snow, cities such as Boston and the state of Connecticut were. In these locations, effective cash management at the ATM to ensure high availability of cash for consumers becomes very important.
Ensuring cash is available to consumers at the right time and the right location is not a new strategy and there is prior evidence to suggest the ATM becomes an even more vital banking channel for consumers at times of severe weather.
ATMs love blizzards
A recent article on PYMNTS.com took readers back to the importance of the ATM when very severe snow last hit the United States. An excerpt from article:
“On February 5th 1978, an incredible 17 inches of snow fell on New York City in about 24 hours, and the city ground to a screeching halt! Nothing, especially banks were open – which presented a problem for consumers, who started getting cash at supermarkets. These supermarkets however promptly ran out of cash!
Guess what though? Ready and waiting, were ATMs - poised and able to come to the rescue of consumers, delivering high level consumer experience and cash availability just when it mattered.
During the storm, the use of the cash machines shot up 20 percent, more or less, overnight.”
Consumers love ATMs too
Fast forward to 2015, and the United States of America currently has 432,000 ATMs compared to 11,775 back in the late 1970s. Although consumers nowadays do have access to a wide range of digital and electronic payment methods, cash still proves important for consumers. Take the United States for example where $1,241B of cash is now in circulation (source: Bank of International Settlements).
Availability of cash in such severe weather or environments is something that can be best emphasized by the fact that there are now NCR SelfServ ATMs even in the Antarctic. Consumers continually demand access to cash wherever and whenever they need it and a solution like the NCR SelfServ 28 (a fully weatherized ATM proven to operate in extreme temperatures as low as -35c) is helping financial institutions serve their customers in a secure and cost effective manner.
While the weather may remain uncertain, what can be predicted is that high levels of cash availability at the ATM will always be important for consumers!