Have you asked me? I’m a bank.!!!!
I’m a bank with substantial amount of ATM Kiosks and I consider this as a wrong decision, Because there is a cost involved in serving the customer through ATM'S. There is cost of maintenance, cost of replenishing the cash, cost of operation, rental and lot more. Now my fixed cost/ TOTAL customer (Mine other bank customers) will be reduced but the fixed cost/ my customer remains the same or may increase as my customer will withdraw money from other bank ATM’S.
My Operating cost will increase due to frequent customer walking in and outs of the ATM’S causing electricity bills to shoot up and I’ll have to incur additional maintenance cost of the machines. Variable cost i.e. cost of replenishing the cash will increase exorbitantly as people will find it easy to withdraw cash from the nearest ATM which could be my bank ATM.
Later I’ll discover that my cash refueling has to be done more frequently and many times my own customer will be deprived from there fundamental right of cash withdrawal because of the ATM’S running short of cash.
There can be a counter argument that my customer can use other bank’s ATM, but what about my privileged customer getting denial of services from my ATM and cursing the moment when he opted for my services. Three times it happens and I’m bound to loose my existing customer and even the prospective customer who is using my ATM for cash withdrawal.Moreover It will be also impossible for me to predict the demand.
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I’m a bank with substantial amount of ATM Kiosks and I consider this as a wrong decision, Because there is a cost involved in serving the customer through ATM'S. There is cost of maintenance, cost of replenishing the cash, cost of operation, rental and lot more. Now my fixed cost/ TOTAL customer (Mine other bank customers) will be reduced but the fixed cost/ my customer remains the same or may increase as my customer will withdraw money from other bank ATM’S.
My Operating cost will increase due to frequent customer walking in and outs of the ATM’S causing electricity bills to shoot up and I’ll have to incur additional maintenance cost of the machines. Variable cost i.e. cost of replenishing the cash will increase exorbitantly as people will find it easy to withdraw cash from the nearest ATM which could be my bank ATM.
Later I’ll discover that my cash refueling has to be done more frequently and many times my own customer will be deprived from there fundamental right of cash withdrawal because of the ATM’S running short of cash.
There can be a counter argument that my customer can use other bank’s ATM, but what about my privileged customer getting denial of services from my ATM and cursing the moment when he opted for my services. Three times it happens and I’m bound to loose my existing customer and even the prospective customer who is using my ATM for cash withdrawal.Moreover It will be also impossible for me to predict the demand.
To view complete discussion Click Here
Hello Sir,
ReplyDeleteNice to see your blog & such a beautiful article. Thanks for sharing such great thoughts to encourage to think over the issues in the public life.
Looking forward to read such great articles here. Wish you happy blogging. :)
Amish