Deposit Automation: Remaking the Consumer Experience

Sponsored by Diebold, Incorporated
Tags: Bank / Credit Union, Bank Automation, Cash Dispenser / Recycler / Acceptor, Deposits / Check 21, Multifunction ATMs
Type: Guide
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In an era when customers — and money — are on the move, financial institutions need continually to develop service offerings to help build and retain customers. And with self-service terminals becoming commonplace in everyday life, such as airport check-ins and grocery store check-outs, ATMs are proving to be a powerful tool for FIs to attract, retain and empower customers.

Despite the financial turmoil of the past several years, FIs have been introducing deposit automation at a record pace. According to London-based Retail Banking Research, more than 464,000 deposit automation terminals had been installed around the world as of the end of 2009, a 44 percent increase over 2007 totals. During the same period, the number of non-deposit ATMs grew by just 12 percent.

And the number of deposit automation ATMs is expected to triple by 2020. Clearly, FIs are seeing deposit automation as an indispensable part of their competitive strategy.

"There are more than 60,000 image-deposit ATMs in the United States already, and the number is climbing quickly," said Nicole Sturgill, research director, delivery channels, with Needham, Mass.-based research firm TowerGroup. "If you haven't deployed a deposit automation ATM, you are most likely competing with an institution that has."

The growth in the number of deposit automation ATMs comes in conjunction with a corresponding growth in the use of cash, likely a result of the economic downturn.

"We saw a huge public loss of confidence in credit, per se, as the full extent of household and consumer debt levels became apparent, exposed by the financial crisis," said Mike Lee, CEO of the ATM Industry Association. "As a result, masses of citizens turned to cash, and cash regained its leverage as a time-honored household budgeting tool."

The benefits of deposit automation are being felt throughout the banking industry. FIs benefit via the reduction in the costs associated with check processing and cash handling, as well as a reduction in deposit-based fraud. Tellers benefit by being able to spend more time interacting with customers and less time counting cash and tracing errors. And customers benefit from greater convenience, improved service and quicker access to deposited funds.

There are a number of factors to consider when implementing a deposit automation solution. The choice of vendor can have a significant impact on service and availability. Employees and customers need to be educated on the new technology.

In addition, deployers need to consider the manner in which they implement deposit automation. Should they phase a solution in over time, in one city at a time, or deploy it all at once? Should they implement deposit automation in every channel, or only those that handle either the fewest deposits, or the most? All of these questions need to be addressed when implementing a deposit automation solution.

Integrating all of the components of deposit automation can be a challenge. But when all the pieces are brought together in a seamless operation, FIs have the advantage of reduced operating costs and increased customer satisfaction. And that will lead to success in the marketplace.