Since 2008, in Spain 30% of vending machines have disappeared with which to carry out banking transactions, especially in rural areas. Thus, older people and customers with fewer digital skills were the most affected by this deterioration in banking service.
Of all the procedures that can be carried out in a vending machine, the one that most affects this type of customer is cash withdrawal. According to the latest Cash Use Habits Survey (EHUE) from the Bank of Spain, daily cash use increases with age. Thus, while 48% of young people use it to make their daily payments, the percentage among those over 54 rises to 77%.
Likewise, the most common way to get money in Spain is the ATM, with 74.5% usage, followed distantly by the physical bank branch (9.1%).
It is for this reason that the Mediator asked the National Markets and Competition Commission (CNMC) to carry out a study aimed at finding ways to overcome the lack of ATMs in rural areas. In response, the solutions found by the commission are divided into public initiatives and private initiatives.
On the one hand, the CNMC proposes, as private initiativesimplement the cash back And checkout in storewhile on the other hand it proposes, at a public level, to evaluate different alternatives, such as ofibus.
Cash Back
Cashback and checkout in store In short, they consist of using already existing local businesses as vending machines.
In the case of cashback, the mechanism is as follows: the customer who wishes to obtain cash goes to a store, buy one or more products and pay them with your card. When paying, the customer requests that, in addition to the amount of the products they are going to purchase, they be charged an additional amount, equivalent to the amount they wish to withdraw from the “checkout”. Thus, the establishment will charge you the corresponding amount for the products you purchased and will return the extra amount you requested in cash. The CNMC explains it with the following practical case:
“A person who buys food worth 60 euros with their card in a supermarket could ask for an additional 40 euros to be added to their purchase and to be given this sum in cash. In this way, their card bank would be debited 100 euros, the 60 euros of the purchase and the 40 euros that the supermarket would give in cash, thus saving the consumer a subsequent trip to an ATM.
Cash-in-shop
In the case of cash-in-shop, the mechanics are somewhat different. Here no need to buy a productbut the customer directly asks the establishment to withdraw cash, which will be debited from their card.
According to the commission, both methods involve benefits for consumers and businesses. For the former, this means avoiding trips to other ATMs or offices, as well as the typical personalized treatment at retail stores that is essential for seniors. For the latter, the provision of this service can lead to a larger customer base, as well as the generation of additional revenue by the bank by providing the service that banking entities should provide.
Bus
The case of buses is simpler; Basically it is about creating mobile offices inside buses, but with certain limitations. The measure is not that innovative, since they already exist. In fact, according to the CNMC, this service is already offered in 827 municipalities throughout Spain.
