SURVEY ON BANKING SERVICES AND ELECTRONIC FUND TRANSFERS THE RESEARCH DIVISION OF THE NEW YORK CITY DEPARTMENT OF CONSUMER AFFAIRS Elinor C. Guggenheimer, Commissioner Although most consumers appear satisfied with the current system of' banking and checking, a sizeable segment of New Yorkers like certain aspects of computerized banking, according to an informal Department of Consumer Affairs survey. Staff interviewers questioned 303 randomly selected adults at banks and automatic cash machine locations throughout New York City between September 8-20. The purpose of the study was to determine consumer attitudes towards conventional banking and Electronic Funds Transfer Systems (EFTS). The primary findings appear below: New Yorkers indicate that they are happy with the present system of banking and with bill paying by check. a. When consumers were asked about their satisfaction level with various banking services, the vast majority were very content: (See Table #1 for details). ... 80%were very satisfied with overall convenience of bill paying by personal checks. ... 74% were very satisfied with current system of checking services provided by banks. ... ... 66% were very satisfied with the current system of credit cards. Nearly everyone else was somewhat satisfied with these services, and only 1-2 were not at all satisfied. -2 b. Consumers were asked about their extent of agreement or disagreement with several statements about their financial transactions. (Table #5). ...77% agree completely that the current banking system is convenient enough for them. ... 76% agree completely that a cancelled check is the most reliable evidence or proof of payment. .. ... 64% agree completely that when it comes to money matters, they would prefer dealing with people, not computers. The remainder agree partially with these statements; a small minority of people disagree completely. C. New Yorkers were also questioned specifically to their degree of satisfaction with certain features of conventional checking accounts. (Table #6). ..90% of respondents are very pleased with having complete records of bank account activity, including cancelled checks and receipts for deposits and withdrawals. ... 80% are very pleased with the degree to which financial transactions are kept confidential. ...62% are very pleased about their control over where and how much they pay for each bill. 56% are very pleased with the stop payment feature of checks, when they are not satisfied with a purchase. ...52% take advantage of the float. -3 ...Almost all remaining respondents were at least somewhat pleased New Yorkers show selective enthusiasm about and interest in certain types of computer transactions. Specifically, they like automated cash dispensers and point-of-sale terminals in retail stores. Overall, the data indicate that .8 most people who have used electronic fund transfers are satisfied with the system. Non-users of electronic transfers will be addressed in a later section of this report. a. Automated Cash Dispensers About 7 in 10 New Yorkers interviewed have used automated cash dispensers. Approximately 9 in 10 of the consumers who use them to withdraw or deposit money are very satisfied with the system. (Tables #1, #4a.). Consumers liked the following features of the automated teller machines. 4 Even though people who use cash machines are enthusiastic, only 21% of those who never used them are very interested in trying the machines; 40% are somewhat interested, and the remainder not at all interested (Tables #4a. & 4b.). The fact that 2 in 5 New Yorkers who never used a cash machine are not interested in trying it points to the following trend: people who have used electronic banking techniques like the system, but those with no experience are reluctant to experiment and do not show strong interest in it. b. Point-of-Sale Terminal Use About 4 in 10 consumers (36%) have used point-of-sale terminals to purchase goods. Nearly all (87%) are very satisfied with this type of electronic transaction. (Table #4a.) Interestingly, over half of those who never made a purchase this way (53%) indicated that they were very interested in doing this. 25% said that they were somewhat interested, and 22% not at all interested. For people never before involved with electronic banking, this was the only item in which a majority expressed a strong interest. (Tables #4a & 4b.) The generally positive reaction to this type of buying was strengthened by a further finding: 56% of the consumers questioned said that being able to make purchases at stores and supermarkets through computer terminals without the need for cash or checks would very much improve their financial transactions (Table 7) -5 Other types of computer transactions, like preauthorized payroll deposits and bill payment, are used by far fewer people (from 2-13%). Satisfaction with these methods is mixed, and non-users do not show strong interest in trying such transactions. (Tables 4a & 4b.) The data indicate that automated teller machines and point-of-sale terminals are the most satisfactory and most frequently used forms of electronic transfers. Consumer see convenience and comparable safety in EFT, since 56% agree completely with the statement "with full electronic banking, my money will be as safe as in a conventional checking account." About half of those surveyed (47%) agree completely with "paying bills and making other financial transactions by computer will be more convenient than writing checks." most New Yorkers (80%) seem satisfied with the convenience of the existing banking system, one questions how much need there really is for added convenience (Table #5). Since 3. What Consumers Dislike About EFT Consumers who have used automated cash dispensers list several things they dislike about them. People with no experience in each form of EFT express little interest in using electronic banking. Furthermore, there are several problems that grow out of the idea or concept of EFT, i. e., mistrust of computers, |