Article

3 reasons why video teller devices need their own strategy

Would you treat a teller like an ATM? Then why lump a video teller device in with your ATM fleet? 

December 10, 2013

by Terrina Rishel
CEO of ATM Authority

Some successful branch transformation initiatives have demonstrated that "teller-controlled" video teller devices can eliminate many branch inefficiencies. These programs have shown that in order tosignificantly alter the long-term cost of branch networks, FIs need to focus on the reduction of laborious processes and expensive transactions.

In the past, reducing branch costs was often equated with a negative impact on the consumer experience. But today, "bleeding edge" branch transformation enthusiasts have proven the opposite with solutions that redirect teller focus from counting cash to concentrating on the consumer.

But when this approach involves the implementation of video teller devices at the branch, it's important to develop a strategy that considers the unique capabilities of the machine in order to create the best possible consumer experience. Here are three things to keep in mind as you develop that strategy:

1. Lessons learned from gas station transformation

Remember when gas stations were full-service only? Gas station transformation was a huge success mainly because gas-pump technology, in conjunction with pay-at-the-pump convenience, evolved in a way that initially gave consumers a choice between full- and self-service. Customers weren't forced to go it alone until the marketplace adapted, at which time gas station attendants became essentially obsolete.

Early adopters learned that if they had a problem, they could speak to the attendant by intercom at the pump, or ask the clerk inside to assist them. Creating separate self- and full-service lanes allowed gas stations to accommodate both types of consumers.

Retailers had to achieve a delicate balance when changing their business model by delivering a technology solution that the marketplace would embrace over time. Gas station transformation employed a self-service payment vehicle to attract consumers with a quicker more convenient experience, but their true focus was on gas-delivery automation.

FI branch networks today are in a similar position to the one that gas stations found themselves in decades ago, except that for FIs, the focus is on cash automation and the elimination of operational inefficiencies. Ultimately, consumers will reap similar benefits from a more convenient, consumer-focused experience, while FI's implement and leverage new automation solutions.   

2. Your current ATM vendor might not have the device you need

If you believe that traditional teller lines could become obsolete, then this should be the filter through which you evaluate a potential investment in a video teller solution. 

Find out firsthand which of the products in the market today are tried and true solutions that deliver real results. I highly recommend visiting a financial institution that has used a video teller device past the pilot phase.

Many FIs have realized the value of looking outside their current marriage to one ATM manufacturer in order to optimize the best possible video teller product. It is not uncommon to have ATMs from one vendor, and a video teller solution from another.

3. Video teller devices should be viewed as tellers, not ATM boxes

Market leaders have figured out that the video teller devices require a strategy that begins by treating them as tellers, not ATMs. 

Customers are interacting with a live person who is replacing the traditional teller line function. Video teller capability appeals to full-service minded consumers or those who need to complete a more complex transaction. There is a big difference between this demographic and ATM users carrying out basic transactions.

These differences will require an evaluation of service hours, device placement, currency and coin needs, transaction offering, and the like. To lump them into an ATM strategy might result in missing the opportunity to fill the needs of the target consumer, and the channel as a whole.

When evaluating what solution to purchase and how, determine which channel will be served by the functionality of the device. Will implementing a partially assisted or unassisted device achieve the goals of eliminating traditional teller lines and the laborious cash-counting processes that go with them? Will self-service resistant consumers migrate to these channels without feeling disgruntled? Does this solution allow for teller centralization?

Currently only one of the video teller devices on the market allows full teller control of the terminal, accommodating up to 95 percent of teller line transactions. It's important to determine in advance which solution set will best meet the needs of your branch and your customers — teller consultation through a video ATM or teller control through a full-feature device.

True branch transformation

Don't underestimate the power of an evolutionaryexperience strategy that separates ATM delivery needs from the video teller channel. It's imperative to do so in order to capitalize on technology that will truly transform branches and allow your branch network to compete in the ever-changing marketplace.

Read more about ATM innovation.

photo: carbon arc