By : Colin Gordon
September 09, 2014 07:53 PM
The role of ATMs in consumer banking interactions is currently undergoing a complete makeover. This is the view of Les Riedl, senior managing partner at consultancy Bank Solutions Group.
Speaking to ATM Marketplace for its' 2014 ATM Software Trends and Analysis report, he notes that it was only a few years ago that the use of cash machines was beginning to decrease. Constant re-invention of the ATM has now made them now more relevant than ever, with the global install base expected to grow to over 3.7M by 2018 (Source: RBR 2013).
“There is now a convergence of factors in the financial services industry driving a redefinition of the ATM’s role,” he says, adding that the impact of these factors is “spurring an unprecedented period of innovation and the reinvention of ATMs from being cash dispensers to essential components of a self-service banking and payments hub.”
So just how are ATMs changing from having your bank card read by a machine and then withdrawing your cash? Here are three different transactions and ways of interacting with the ATM:
To be able to deliver the level and range of services desired, banks need to enable customers to open accounts at self-service machines like ATMs. This enables customers to perform 100 per cent of the account opening processes out of hours, when it’s more convenient for them. This is done using a process called ‘Know Your Customer’ which identifies the person with biometrics, while scanners can be used to check essential documents like a passport.
Biometric technology is transforming ATMs, particularly as a means to improve authentication security. However, at present it’s mainly in emerging markets where this functionality is being tested.
“We feel biometric authentication will mature and be usable earlier than other security technologies,” Mridul Sharma, executive vice president and head of solution delivery at India’s IndusInd Bank, says in the report.
Biometrics can also increase automation and speed up consumer transaction, with recent estimates suggesting up to 90 percent of all bank operations could be authenticated using biometrics.
Increasingly the ATM will present each customer with a customized user interface based on who they are, the types of transactions they normally carry out and other personal preferences. These can be changed dynamically or by the customer themselves. Messages can be sent to customers who only use ATMs and never step into the branch. Marketing is another important area. “Targeted one-to-one marketing has excellent potential at ATMs,” says the report. “Moreover, targeted ATM advertising needs to be actionable to be effective. For example, the addition of video in an ATM advert creates a compelling call to action.”
These are just some of the ways ATMs are changing - the evolution of self-service is ongoing and will likely see further continuous improvement as newly designed ATMs with more modern aesthetics become more common.