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Kiosks in Financial Services: Targeting Fringe Banking Users

Kiosks in Financial Services: Targeting Fringe Banking Users

After several failed attempts, transactional financial services kiosks are making a comeback to serve fringe banking users. Fringe banking users are unbanked and underbanked consumers, as well as banked consumers who may use alternative financial services

Boston, MA, February 8, 2006 – In a new report, Kiosks in Financial Services: Targeting Fringe Banking Users, Aite Group reviews the prospects of transactional financial services kiosks in the United States. The report aims to answer the following questions: Are kiosks a developing distribution channel for fringe banking services? What are the fastest developing applications? Who are the leading players, and what are the key competitive trends? What is the projected level of IT spending on financial services kiosks?

The report reveals that several business and technology factors are joining forces to create new opportunities for kiosk deployers to deliver fringe banking services. The term fringe banking users refers to both unbanked and underbanked consumers, as well as banked consumers who may use alternative financial services providers for convenience reasons.

"In their quest to wow fringe banking users, banks are facing a far more dynamic, technology-savvy and competitive environment than in the past," remarks Gwenn Bézard, a research director with Aite Group and author of the report. While banks have made progress in targeting fringe banking users, alternative financial services providers have also enhanced the quality and the variety of their products, therefore deflecting some of the progress made by banks. "Banks need to wake up to a hard and cold fact: the emergence of kiosks is one more sign that fringe banking services are a developing value proposition, not a declining one," adds Bézard.

The twenty-seven firms mentioned and/or profiled in the report include: ACE Cash Express, APS (CheckFree), BillMatrix (Fiserv), Blackstone, CashWorks (GE Consumer Finance), Coinstar, Cyphermint, Empasys, Euronet, Greenland, IBM, Infonox, Innoventry, InfoTouch, IPP, KIOSK Information Systems, Palm Desert Bank, Pay-Ease, PhoneCharge (CheckFree), PreCash, NCR, 7-Eleven, Source Technologies, Speedpay (First Data Corp), Tranax, VERO, and Western Union (First Data Corp).

This is a 41-page Impact Report. Clients of Aite Group's Retail Banking service can download the report.