Branch Transformation
Advanced ATM features: 5 to include
Here are five advanced ATM features that you should include.
August 6, 2024 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator
ATMs are no longer simply cash dispensing machines. While some operators still deploy the more traditional versions of ATMs, customers are looking for devices with more advanced features. Here are five advanced ATM features that you should include.
Advanced ATM Feature No. 1. Deposits
Customers don't want to just withdraw cash, they also want to be able to deposit their cash and checks at ATMs. This ATM feature has become commonplace in bank ATMs, although many independent operators have not integrated it yet.
"I think the single biggest advancement in ATM features over the past 15 years is deposit automation – it created the baseline for transaction automation/transaction migration and started the push for branch transformation," Bill Budde, VP of banking strategy and solutions at Hyosung Innovue, said in an email interview.
Neill Harris, executive director, NCR Atleos agreed that cash deposits are an absolutely critical feature for independent ATM operators to provide.
This is part of a larger trend in the industry, of transforming the single-use device into a multi-functional kiosk.
"We've seen an increasing number of ATMs used for day-to-day 'manual' transactions like deposits, withdrawals, balance inquiries, etc., so the easier it is to enact these transactions, the more valuable your fleet can be," Jodi Neiding, VP of Americas Banking Portfolio at Diebold Nixdorf, said in an email interview.
2. Cash recycling
Both Budde and Neiding identified cash recycling as being one of the most important tools for ATM operators to provide for a number of reasons.
Budde for example says that due to the surge in customer cash deposits, this has made " ATM recycling an incredibly important feature, as it allows FIs to dramatically improve their cash handling efficiency."
With cash recycling, ATMs can filter out deposited cash and reuse it for customers to withdraw. This decreases downtime, replenishment visits and in turn saves costs for banks.
" In fact, cash recycling can reduce ATM total cost of ownership by up to 20% and cash replenishment efforts by 75%. As a result, we're seeing more and more banks leverage cash recycling as part of their ATM strategy," Neiding said.
"Today over half the world's ATMS are cash recyclers, and this lowering the cost to deliver cash is critical," Harris said in an email interview. He added that cash recycling needs to integrate forecasting tools for "optimal performance levels and replenishment cycles."
3. Self-service banking
Another element that is directly tied into recycling is the ability for the ATM to serve as a self-service banking tool. This can take many different forms such as offering account balances checking, bill pay or the ability for the customer to withdraw cash in the form they desire in the same way they can select their denominations when withdrawing money from a teller line in the branch.
"Consumers demand choice, so versatility in cassette configuration gives them more denominations to choose from during ATM withdrawals," Neiding said.
Independent ATM Operators can also deliver this self-service banking experience by offering "cash-in features."
"This will allow them to turn their single function cash-dispense locations to a full-function financial services kiosk. The increased transactions will generate more fees, but perhaps more importantly, the traffic associated with the increased access to alternative financial services will make these machines more desirable to the merchants that want ATMs on their premises, increasing overall foot traffic and making the ATM a destination," Budde said.
4. Alternative authentication
Customers want to access devices on their own terms without necessarily having to pull out additional cards, apps or other features. Alternative authentication methods are key ATM features in today's market, especially with the dominance of the smartphone.
"We're witnessing a rise in demand for alternative authentication methods, such as biometric authentication and contactless features," Neiding said. "Whether you're using a phone with biometrics to begin a transaction that can be finished at an ATM or tapping your card rather than inserting it into a machine – these new technologies are something to keep an eye on."
Part of the reason for this push is that customers tend to expect the same experience across the board and industries. So, because many retailers offer tap and go payments, they expect it from their banks and ATMs as well.
"NFC / tap-and-go functionality will become incredibly important in creating a user experience at the ATM that is on par with what people experience at point-of-sale," Budde said.
5. Cloud integration
Integrating cloud-based tools can help ATMs deliver services better and more efficiently than before. With the advent of XFS4IoT, operators now have direct access to a cloud-native global standard for ATMs, available on Github. In particular, ATM operators can access cloud application-as-a-service, which opens up many possibilities.
With it, an ATM operator can remotely activate features via remote cloud-based hosting. For example, an owner could turn on or off dynamic currency exchange, cryptocurrency purchases based on customer demand. With this tool, ATMs could deliver multiple functions quickly and efficiently.
A note about AI as an Advanced ATM feature
AI is of course still coming down the pipeline, but there are a few predictions on how it drives new ATM features. For one, it has the possibility to make repairs much simpler.
"With an AI-driven preventive service model, repairs can be better planned, completed faster and earlier, and with very high first-time fixed rates," Neiding said.
It also the potential to work with some of the other features to improve overall service.
"I see the next level in cash automation being multiple ATMs working together to recycle at a site level. ATMs will have the capability to automatically load and unload cash, reducing errors and further improving efficiency, and they will be managed by a platform that identifies usage patterns and ensures both cash availability and machine health," Budde said.
Harris agreed that AI-powered virtual assistants will play a major role for ATMs down the pipeline.
AI will likely serve a backend purpose on ATMs, making all of these features more efficient in the long run.
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.
NCR Atleos
NCR Atleos expands self-service financial access for retailers and financial institutions who leverage our expertise, operational scale, always-on global services and constant innovation to deliver convenient self-service banking.
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
