Citibank decided to test the use of Beacon technology in some of its Smart Banking branches in New York City. By making use of this technology, the company wants to provide their customers to make use of smartphones to access the branch ATMs 24h a day.The use of Beacons lets the customer choose to receive location based customized messaging. This includes messages about special promotions or specific events of the branch/region.

Value of Beacons for Citibank

By integrating this new technology, the company is aiming to enhance the appeal of branch banking. In the past years, this industry has been declining in popularity. According to a survey conducted by the BI Intelligence Digital Banking, 75% of millennials either never visit branches or do so once a month or less.However, the survey also showed that 62% of millennials sees value in branches. This means banks need to find a way to create a better balance between digital and in-branch services.Beacons can provide a good solution for this need of integration between the digital and offline environment.Citibank has created an infographic on how this technology will be used.

The banking industry is becoming more popular to tech-savvy customers due to the introduction of beacons, cardless ATMs, and other mobile technology. Smartphones are becoming a foundational banking channel. This offers a great opportunity for the expansion of the use of Beacons in this industry. By making use of Beacons the bank is able to collect data about the user and on its purchases. This is more reliable due to the fact that the smartphones go everywhere the user goes.

Beacons are a good technology to respond to the increasing needs of the millennial user. This user is more tech-savvy and is focused on the easiness of the use of the banking system. With the use of Beacon, technology banks are able to collect more information on their users and do better targeting.