Innovation
3 ways ITMs can deliver a better banking experience
When used properly, ITMs can improve the banking experience. Here's how.
April 4, 2025 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator
ITMs(interactive teller machines) are one of the biggest innovations in banking self-service. Banks can use these devices to deliver branch services on customer's terms.
Tidal Commerce defines an ITM as, "a 'branch in a box' system that uses a combination of touch screens and video technology to offer a virtual version of the in-person banking experience."
ITMs vary in function. For example, some include advanced ATM tools, while others have account management tools. If implemented successfully, ITMs can dramatically improve the banking experience. Read below for three ways they can accomplish this task.
ITM video banking
The most common feature for ITMs is video banking. Customers, especially younger generations, choose self-service options such as digital banking or ATMs over walking into the branch for most simple bank needs.
However, if they have a question or need help, in most cases they would have to go inside the branch or contact someone. With video banking, customers can simply push a button right on the ITM to contact a live banking representative.
However, in order for this service to be truly effective, these live banking representatives need to be available outside of the traditional branch hours. After all, many customers cannot make it to the bank during the hours of 8 a.m. and 5 p.m. and they still need assistance.
Case Financial stated in a blog post that, "with the ITM's live video at your branch, you can easily extend your brick-and-mortar banking hours. In fact, it's been reported that financial institutions see an 88% increase in branch hours and over 30% increase in deposits being made outside of standard hours when they add an ITM to their branch."
However, it is worth noting that this service can be expensive to provide. Mark Aldred, head of sales for Auriga, states that the video banking in older ITMs in particular has some limitations.
"These include the ATM network only accessing accounts tied to the card, network-imposed transaction limits, and video tellers only available within certain hours. The cost of the infrastructure and remote tellers could also be extensive to buy and maintain."
One issue with traditional ITMs is that initially many viewed them as video ATMs rather than a complete branch self-service tool.
"ITMs are not ATMs. An ITM strategy is a branch strategy and when deployed as such can have an amazing impact on your institution," Scott Fieber, chief strategy officer at Cook Solutions Group, said in a story on ATM Marketplace.
As a result, ITMs need to do more than just provide video services.
ITM core integration
As mentioned above, traditional ITMs were limited in functionality as they could only offer services tied to a particular debit or ATM card. Newer ITMs, however, can integrate directly with bank's core systems.
As a result, they can offer far more tools to customers.
"One of the most innovative developments of ITMs is the introduction of core-integration on the machine into the banks' systems. As such, customers will be able to access their accounts, perform advanced transactions and complete other banking activities 24/7, without the need for a video teller," Aldred states.
Since these ITMs connect to all of the customers accounts, they can perform a wide range of banking activities such as:
- Open an account.
- Pay a bill.
- Transaction history.
- Pay loans.
- Cash deposit.
A well designed UI will also greatly help out customers. For example, Franklin Mint Federal Credit Union provides cash withdrawal, deposit, fast cash, payment, transfer, balance inquiry and transaction history all on the same screen at its ATMs, which makes it easy for customers to use.
With these tools, Hyosung Americas states that banks can automate much of the teller line.
"Since an ITM can perform 80-90% of the same transactions a teller can, you can funnel your customers to ITMs instead of human tellers."
ITM branch transformation
The primary goal of an ITM is to transform your branch into a modern space as well as make the most out of smaller spaces.
For example, Alliance Catholic Credit Union utilizes ITMs both to improve its drive-thru experience and provide full banking services at smaller branches.
"ITMs are helping us grow our footprint with smaller, more cost-effective branch locations. The branch model with an ITM allows us to test new markets with a smaller human and financial capital investment," Adam Tonge, VP of retail services for Alliance Catholic Credit Union, said.
By relegating traditional branch transactions to ITMs, financial institutions can refocus their branch space and tellers into providing personalized banking services.
For example, tellers can be retrained as universal bankers who can direct customers to ITMs for simple transactions and help them out with deeper financial guidance or advice. Banks can also eliminate teller lines to craft open spaces that encourage collaboration and relaxation among clients and employees alike.
In essence, the ITM is integrated into the broader branch experience for a branch transformation strategy.
A few caveats
While ITMs can be very useful tools, it is worthwhile to end on a few caveats.
For one, employees will need to be trained on how to use the ITMs and teach customers how to use them. Some customers, especially older ones may be more reluctant to try out the machines.
Also much like AI, banks will need to reassure employees that these machines are meant to make their jobs easier, not to replace them.
Lastly there is a cost component at play here. As Hyosung Americas points out, " An interactive ATM is a relatively expensive piece of hardware, and to really see a change in your bottom line, your company will need to implement this technology on a large scale."
In addition, if the ITM is in a more remote, rural setting, Hyosung states, "you may have to invest in upgrading connection speeds, since hi-def video requires a certain amount of bandwidth."
Ultimately, every bank and financial institution should still carefully examine ITMs to see if they are the right fit for their branch strategy.
About Bradley Cooper
Included In This Story
Hyosung Americas
Hyosung Americas is a global human experience maker that bridges the physical and virtual worlds. We do this by harnessing our unique combination of a manufacturer’s soul with an innovator’s mindset to build a platform of integrated products, services, and ideas that improve life’s day-to-day interactions for everyone.
Cook Solutions Group
Simple | Secure | Service | Solutions. From ATM sales, support, and service to enterprise security solutions with Next Generation technology. Think CSG First. We Make it Happen!
Auriga
Auriga is a top international software solutions company, specialized in end-to-end systems that integrate the various delivery channels used in retail and internet banking.
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