Today, many FIs view their ATM endpoints as a key part of their digital transformation strategies, offering exceptional digital first transactions that are seamless across the mobile and ATM channels.
In a connected age of open banking, cryptocurrencies and mobile banking, the current multivendor ATM network is increasingly limiting an FI’s ability to innovate and respond to changing market forces.
This opens up the option of employing an ATM as a service model. This allows financial institutions to outsource part, or the whole, of their ATM operations to third party providers. Experts can take on all aspects of ATM operations including distribution, installation, maintenance and cash management. This takes the burden off financial institutions, allowing staff to concentrate on further innovation and saving money in operating expenses.
- Efficiency: Iit’s easy to deploy with one software point of contact across the entire network in a seamless and integrated manner.
- Connectability: Ensuring consistent and reliable connectivity to the banking infrastructure which becomes much easier with just one system to configure.
- Security and compliance: Single handling of security and compliance across the whole network.
- Simplicity and consistency: If you’re having to interact with many different vendors, you can have a single and unified experience at all ATMs.
These benefits can be considerable. According to one study, in-house ATM operations can account for up to 35% of a FIs operating costs. With a single strategic partner, they oversee all operations including managing all the vendors being supported through the system.
What you get out of this is a more flexible, sophisticated and interactive solution in which ATMs are becoming FIs in a box. The vast majority of teller transactions are possible at the ATM including cash deposit, coin dispensing, account services, replacement cards and much more. Interactive teller services provide options such as face to face support through audio or video chat. FIs will be able to transform the traditional branch model, extending office hours and finding new ways to blend the self-directed banking experience.
All this new functionality, though, needs new and more advanced infrastructure to underpin it. Here at NCR, we’ve been working on upgrading software to provide enhanced functionality. We are, for example, the first to achieve ATMIA Next Gen Level 2 API certification with our Activate Enterprise NextGen ATM application. This allows for interoperability between vendors and provides access to banking and financial services which dramatically expand the functionality of the ATM. We are proud to be the first technology provider to achieve this milestone and empower modern applications delivering mobile like services through ATMs.
This is where the technology is going at the moment. What is advanced and innovative today will become commonplace tomorrow. The more technology customers are given, the more they expect which raises the bar for everyone.
This is the future and FIs will benefit by changing the fundamental business case around how they manage their ATM fleet. But they need to ask some probing questions: Are ATMs strategic to your branch strategy? Are you seeking to implement digital first engagements and journeys? Are you looking for vendors or partners?
Importantly, now ATM operators have options in regards to the operating models for their ATM network. Cloud and hosted solutions help reduce infrastructure costs, managed service options allow you to outsource more operations, while subscription pricing models provide more flexibility on the commercial costs to operate ATMs.
Digital innovation can always be a cause of anxiety – especially in the financial sector where every new advance creates a new avenue of attack. However, as long as FIs can understand the technology they work with and ensure all implementations are managed in the right way, they can open up all sorts of opportunities. And with ATM as a Service models growing in precedence, FIs don’t need to understand and manage the technology – they can outsource it to a partner who can take care of it all.
But the rewards are the same - aside from saving time and money, they can give the sector access to the benefits of open banking and all the growth potential which comes with it.