Consumer Behaviour Towards Cashless Transactions: A Report

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Consumer Behaviour A1
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Table of Contents
Introduction......................................................................................................................................3
Assessment 1...................................................................................................................................4
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................11
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Introduction
The report aims at providing an understanding on the cashless transactions and the theory of
motivation and consumer behaviour. It will assess the behaviour of the consumers with respect to
‘cash versus cashless transactions’. According to sources BBC News (2017), it was derived;
cash is an important component of the day to day lives of citizens in UK. The report would be
guided as per the perspectives of Barclays and their preference for digital transactions. It will
provide an understanding on consumer behaviour and motivation theory. It will outline a
comprehensive understanding on the growth of the cash machines and their role in the society.
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Assessment 1
Task
Discuss consumer behaviour towards cash versus cashless transactions
According to Sunil (2018), with the development and rise of digital technology, the consumers
are inclined to possess a particular conduct for derivation of cash from banks. Utilization of
money for trade purposes have been substituted with digital transactions. With the growing
incidence of mobile payments services, consumers are inclined to make such transactions. As
per the case study of BBC (2017), cash has brought in utilization of ATM’s and their services. It
has been witnessed; around 94% individuals make the utilization of the cash for their day to day
activities. As opined by Pal and Jain (2018) the income class and salaried class of the
individuals portray, cashless transactions are more of a viable option. Consumer behaviour
towards use of cash transactions creates an understanding of their daily expenditure. Feasibility
and flexibility is important as it realizes the needs of the traditional customers. With the
changing nature of money, there have been significant developments in the digital banking. Cash
transactions have lost their utility with customers. Similarly, with the growing incidence of e-
wallets, e-payments, order drafts, these have been adopted over time. There are consumer
groups that are worried about the closure of the banks and the ATM machines.
As opined by Pradhan et al., (2018), the buying behaviour of the customers is affected with
changes affecting the economy. The consumers are more entitled to feel flexible while plunging
on digital payment and transactions. Similarly, consumers from the low-income groups are in
favour with the cash transactions, as it is easily accessible and gives them an estimated
understanding on the growth of the customer behaviour. As per the understanding of the
consumer behaviour in UK, the transactions are made with the usage of in more than one of ten
transactions. It is vital to take into account the use of cash, where around 74% individuals, still
make the utilization of cash for making major payments. This has given a description of the
population associated with the growth of making cash transactions other than cashless. A opined
by (Ft.com, 2019) consumers in Britain are ready to embrace cashless society with the growing
incidence of digital payments. Hence, the outlook of the consumers is more attuned to making
cashless transactions as opposed to cash transactions. Although, a small portion of the
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community such as charity houses, cleaners and services workers are reliable on the use of the
cash transactions.
It is important to integrate a better outlook of the behaviour of the consumers as per the
understanding of the population and the income groups prevailing in the United Kingdom. That
would give a better understanding of the nature of the consumers with the changes and the shifts,
which are witnessed in the society.
Explain consumer perceptions towards digital banking
The improvements in technology, has ushered the growth of digital banking in the economy of
UK. Digital banking has brought in changes, within the attitudes and the flexible shopping of the
consumers. As opined by Murugeswari et al., (2018) consumers are able to make the use of the
ATM to make various day-to-day transactions. The banking industry, have improvised on the use
of the newer technology for provision of financial services. Customers are provided with various
touch points to deal with an estimation of their daily transactions. Internet daily transactions are
considered to be useful for the customers and help them in retention. As stated by Shanmugam
et al., (2015) digital banking is useful and has bringing in better understanding of the customers
and their rising expectations. Consumers are inclined and motivated to make the use of these
types of transactions while depending on the safety and the security provided by the banks. There
are positive expectations that are derived from the growth in the services of digital transactions.
The UK citizens are predisposed to make the use of the services such as e-wallets and so on for
the growth of the incidence and in the payments paid to the customers.
As per the statement of Al-Debei et al., (2015), the consumers from the shopping group have
been affected with the incidence of new applications. Mobile payments are more convenient for
the better payment for service usages. In the words of Santini et al., (2019) acceptance of
technology has been widely used by banking institutions. The growth of digital banking has
given consumers reliability and protected the interests of the citizens. This is vital, as there have
been useful considerations of customer benefit programme and so on for company. It has also
brought in better understanding of the role of customers in management of daily transactions.
Digital banking has opened up different channels, which have been justified in the research. This
has also brought in understanding of the customer and their perception towards digital banking.
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The consumers posit a different perspective using the e-wallets and so on for the better
understanding of the marketing and business.
As stated by Lillard and Al-Suqri (2019), it is important to make the establishment of the
customer relationship management for public transactions. Hence, consumers pose an air of
beneficence for better understanding of customers. In the words of Hampshire (2017), consumers
rely on the use of trust and viability for the better understanding of the customers.
Therefore, consumers are able to make elicit choices while, including the use of shopping for the
customers. This is vital, as mobile payments have witnessed a better innovation of the internet
banking services provided by the company.
Apply any motivation theory, with a clear justification, to the use of automated teller
machines in the UK
Figure 1: Maslow’s hierarchical needs
(Source: Robertson, 2016)
UK is becoming a cashless economy in present time and people are looking for convenient
methods to conduct their daily activity, which requires cash. Carrying huge amount of cash for
larger purchases is very difficult, as it increases the weight and it is very much risky. Therefore,
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people are opting for ATM to make purchases easier. Maslow’s motivational theory can help to
understand the rise of ATM in UK. There are various advantages of using automated teller
machines. It provides service to people 24 hours. ATMs are available in several locations
throughout the country and it provides a huge amount of convenience for people. The chances of
human error is minimised through this and it is a major advantage of it.
Physiological
ATM can provide cash to people at any point of time and it is a huge factor satisfying needs,
which deals with food, shelter and clothes. People can withdraw good amount of cash any time
and buy these things, as per their need. Satisfaction of this stage is important to reach the next
stage of this theory (Konheim, 2016).
Safety
The implementation of ATM in various locations across the country is giving people a sense of
safety. This enables them to reach towards the source of cash in a small period. In case of
emergency, they are able to withdraw cash quickly and any kind of critical situations can be
averted due to the availability. This gives them a security as they think that their cash is in a safe
location because ATMs have CCTV cameras installed near it (Blower et al., 2019).
Love
Money is very necessary for people and if they feel safety regarding it, then a liking will grow
inside them for ATM system. The easy accessibility of it is a major cause for people loving this
system. This is very important to love a procedure, which they have to repeat on regular basis
and the feasibility of using ATM is the main reason behind the growth of it in UK (Kobres and
Mouden, 2018).
Esteem
ATM gives physical evidence to the amount of cash a person has on their bank account. This
provides them with a scope to assess the situation of their economical condition and it affects
their self-esteem. A healthy amount of cash inside their bank account can increase their
confidence and ATMs provide proper statement about it.
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Self-actualisation
The cash statement from ATM provides a person with a clear about their current financial status.
If they have sufficient amount of cash, they can go for recreational and creative activities. This
gives them a sense of fulfilment and people can focus more on indulging on activities, which will
improve their mental health.
Based on the analysis above, make a number of recommendations to UK banks in relation
to their efforts for investing in digital banking
The banks in the UK have witnessed an increase in the utilization of the cashless transactions.
With the growth in the expectations and needs of the customers, the cashless mode of deliveries
is acceptable. As per the analysis through a set of scholars and their opinions, cashless economy
has been gaining prominence among the UK citizens. There are various methods of tending to
the financial marketing services used by the company. Digital banking has ushered in a new set
of customers inclined to make the use of their ATM’s. There are different forms of transactions
that are widely accepted by consumers such as e-banking, online drafts, credit/debit payments
and so on.
This has encouraged the consumers to feel the satisfied and content while making shopping or
other payments. Therefore, as per the efforts posited by the company, various other transactions
have catered to the investments made on digital banking. Although, the digital banks are
integrated for the provision of e-payments, the ATM’s have witnessed an improvement in their
delivery of prompt services. Transformation of the banking branch has been witnessed in the UK
this has given the consumers a better sense of direction. Transparency and improvement in the
quality of the digital services can be recommended for improvement of accessibility (Lipton,
2016).
The UK banks should evolve with the shift and the changing trends and patterns of the
customers. This would further improve on the quality of timely services and accessibility of cash
anywhere across the globe. The willingness, which is being posited by the UK companies, can be
brought for enhancing the views and perspectives of the customers. The efforts, which are
undertaken by the UK banks for digital transaction, would enhance the perspectives of customers
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in the growth of transactions. With the better understanding of the cash transactions, the
customers will be able to rely on the use of better banking services.
Therefore, there can be better strategic management for the development of the digital banking
system. This will bring in better cash deposits that are useful for growth of the companies in a
better manner. Investment in the digital banking services should be done for easy access of the
citizens on the use of money. The growth and strategic development of the banks can be
improved in a better manner by reducing hassle and chaos. This would also serve as an outlook
of progress for the consumers. Customer engagement can be adapted to for procuring viable
feedbacks that would serve as an outlet of understanding the needs of customers (Mbama, 2018).
Hence, through the adoption of these recommendations, the companies will be able to enhance
and improve on their quality of cash transactions. The UK banks can improve the economical
conditions of their economy by a better perspective of the services.
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Conclusion
The report has provided an outlook of the behaviour of the customers to the utilization of ‘cash
versus cashless transactions. According to the findings, it has been estimated, UK citizens are
more inclined to make the use of digital transactions. It is a feasible and provides an
understanding on the utilization of the digital transactions prevalent in the UK. ATM can provide
people with cash at any time and this is a major factor, as it satisfies their physiological needs.
The advance system of ATM gives people a huge amount of safety because it has many safety
protocols. Therefore, it gives them the opportunity to participate in deeds, which provides them
fulfilment.
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Reference list
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BBC News (2017) Cash 'lives on' after 50 years of ATMs. BBC [online]. Available from:
http://www.bbc.co.uk/news/business-40404814 [Accessed 10/07/18].
Blower, D., Forsdyke, S.J. and Tombs, L., International Business Machines Corp, 2019. Security
apparatus for an automated teller machine. U.S. Patent Application 10/249,150.
Ft.com. (2019). Is Britain ready to go cashless? | Financial Times. [online] Available at:
https://www.ft.com/content/61fcee76-38e6-11e9-9988-28303f70fcff [Accessed 9 May 2019]
Hampshire, C., 2017. A mixed methods empirical exploration of UK consumer perceptions of
trust, risk and usefulness of mobile payments. International Journal of Bank Marketing, 35(3),
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Kobres, E. and Mouden, B.J.J., NCR Corp, 2018. Techniques for automated teller machine
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Konheim, A.G., 2016. Automated teller machines: their history and authentication
protocols. Journal of Cryptographic Engineering, 6(1), pp.1-29.
Lillard, L.L. and Al-Suqri, M.N., 2019. Librarians Learning from the Retail Sector: Reaching
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Lipton, A., Shrier, D. and Pentland, A., 2016. Digital banking manifesto: the end of banks?.
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Mbama, C.I. and Ezepue, P.O., 2018. Digital banking, customer experience and bank financial
performance: UK customers’ perceptions. International Journal of Bank Marketing, 36(2),
pp.230-255.
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Murugeswari, M., Kamalakannan, K. and Balasubramanian, M., 2018. A Study on Service
Quality towards Digital Banking. Age, 20(7), p.12.
Pal, M. and Jain, P., 2018. An Empirical Study of Transaction Patterns of Salaried Class:
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