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How New Technology Is Impacting the Check Cashing Industry

· technology,check cashing,finance,money management,advancements

More consumers have begun to rely on alternative financial services such as check cashing establishments, which have continued to grow at a steady pace. Many of the nation’s unbanked, in particular, rely on check cashing stores to cash their payroll and government-issued checks.

Check cashing businesses are constantly working to improve their customer service and product offerings. In doing so, many are taking advantage of cutting-edge check cashing technology. Aite Group reported that technology will be instrumental in helping check cashing businesses to retain a competitive edge. Read on to learn more about how check cashing establishments are keeping up with technology—from advanced fraud detection to mobile check cashing apps—while serving millions of customers.

Fraud-Detection Technology

Any industry that deals in finance places great importance on possessing robust fraud protection products and procedures—and check cashing is no different. Banks have a variety of measures in place to identify risk and minimize losses, and many check cashing establishments are increasingly using similar technology.

One of the best features of fraud-detection technology is the ability to obtain customer information from databases and cross-reference it with public records. Firms specializing in this type of technology can aggregate large networks of data in order to obtain a full picture of a consumer in a matter of seconds. The information can include demographic information such as known addresses, as well as employment and other information that can help to verify check funds.
 

Database

For check cashing businesses in particular, the ability to verify checks issued by the US Treasury, including tax refunds, is critical. In recent years, there has been more identity-related fraud associated with IRS tax refund checks, so being able to verify these funds before paying them out can save check cashing businesses a lot of frustration and will help protect them from losses.

Another important tool that many check cashing businesses use to prevent fraud is biometric technology. Don Gayhardt, the CEO of CURO Financial Technologies Corp, believes that biometric technology is one of the best ways that check cashing businesses can put customers at ease. Don Gayhardt noted that business that use the Payroll Check Cashing System are able to leverage biometric data such as fingerprints to pull up customers’ check cashing history and verify their identity.

Customer Retention Technology

Since check cashing establishments pride themselves on providing top-notch customer service, many are seeking ways to boost satisfaction. A recent Inte Q survey indicated that most customers prefer rewards programs and tend to use them in determining which business to patronize. The same survey also revealed that over 50 percent of respondents are likely to use more than one check cashing business.

wallet

The question then becomes, what can check cashing businesses do to bring in new customers and retain their current customers? The answer lies in using personalized technology that emphasizes customer tracking and retention. The best retention technology involves managing a large customer base, analyzing the patterns of those customers, and implementing strategies that will lead to repeat customers. In addition, the best customer retention technology not only focuses on check cashing, but also on other services such as money orders, wire transfers, and sales of prepaid cards.

Some check cashing businesses have begun to provide customer loyalty programs. Since these businesses rely so much on customers, offering them something in exchange for their loyalty seems to be a good way to keep them coming back. Even if these customers maintain a bank account, they will be more likely to use check cashing establishments for their financial transactions if they feel they are truly valued customers.

Mobile Check Cashing Apps

Over the last several years, smartphones have evolved to the point that they have simplified many processes. Cashing checks has also become easier due to the prevalence of smartphones and the technology that drives mobile applications. Research compiled by the Federal Reserve indicates that while all age groups are embracing mobile payment technology, millennials represent the majority of consumers who rely on mobile apps for financial transactions.

While most people think that smartphone apps are only for person-to-person payments, there are other uses for them, too. For example, check cashing firms can use smartphone technology to monitor their businesses. One mobile app even allows customers to see the checks that have been cashed that day, providing access to analytic reports and even companion desktop check cashing system software.

Technology has managed to permeate nearly every industry, and it appears to be improving all the time. As more check cashing technology is developed, customers will expect to see it implemented in ways that will make their lives easier, and business owners will be poised to increase security while maximizing profits. As with anything else, both consumers and merchants must weigh the pros and cons of implementing new technology and plan accordingly.

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