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Deploying APTRA interactive teller as both AIT and ATM: A flawed strategy?

4 reasons to think twice about bundling ATM and video teller functionalities in a single machine.

July 23, 2013

by Terrina R. Rishel, president and CEO, ATM Authority

The APTRA Interactive Teller solution from NCR Corp. is gaining traction in the marketplace as more financial institutions realize its efficiencies and its branch transformation benefits. In its current form the AIT allows a call center teller to control the device and remotely assist the consumer without an ATM card — performing 95 percent of traditional teller services.

Currently, NCR is certifying the AIT to work in dual mode, allowing the customer to choose whether to be assisted by a teller or operate the device as an ATM. One of the main reasons why many FIs have said they are waiting to implement the AIT is its lack of ATM functionality.

A perfect scenario might exist where using a dual-mode device is appropriate, however, the decision to do so should be weighed carefully and not with an across-the-board approach.

Considerations when developing a strategy to deploy NCR's APTRA Interactive Teller in dual-mode:

1) Vendor management

Many ATM networks will be certified (at some point) with NCR to perform dual-mode functionality. However, when existing terminal driving services are contracted with a provider that currently doesn't support it, there will be a need for an additional vendor that is certified.

Some financial institutions already manage two ATM/EFT settlement systems (with cards on one platform and ATMs on another). In this situation, adding a third platform further complicates balancing procedures, which become more complex and laborious. Avoiding this might entail converting existing ATMs to a new provider, if their contract allows for dissolution.

Regardless of dual-mode, with AIT implementation in general, it's important to determine whether the current ATM vendor is a certified NCR services provider. If they are not, they cannot technically perform first- and second-line maintenance on an AIT. This may require a new or additional ATM services provider and potentially a new cash-in-transit resource as well.

2) Risk

The branch of the future could be vault-less and teller-less with staffing limited to concierges and loan specialists. Deploying multiple AIT units in each branch connected to an ATM network has potential risks.

pull quote 2 Remember the recent $45 million dollar ATM Heist? Thieves drained funds with swipe cards moving to new ATMs when they either tapped the limit or the ATM ran out of cash. Connecting AIT devices to an EFT network seems akin to opening up your teller drawers and vaults to ATM fraudsters. This begs an in-depth risk/reward analysis to determine whether ATM volumes and consumer demand warrant the potential vulnerability.

3) Costs and practicality

Most FI locations have ATMs that already handle transaction volumes. In addition to AIT fees, each dual-mode unit will incur ATM software license fees, communication fees, terminal driving fees and the like. I suggest a business case evaluation to determine whether the incremental costs are justified in a setting where transaction volumes are currently being satisfied.

In cases where the strategy is to reach a remote area with a "branch-in-a-box" solution, consumer engagement is at risk when the box is down and there isn't another service option. Potentially a separate ATM is a better approach to avoid complete service outages. Issues still exist even if there are multiple AIT devices in dual-mode, which I will address in the next point ...

4) The ATM user

This final consideration is by far the most important, and in my opinion, trumps all other issues. Regardless of what AIT deployment strategy is adopted, it's important to understand the ATM consumer profile. Many retailers have figured out that self-service oriented consumers do not want to stand in line waiting for a cashier if they can use a designated lane to check out by themselves. For this reason, we avoid placing an ATM in the same drive-through lane as a pneumatic tube.

Most ATM users are perfectly happy not to interact with a human and enjoy the speed of ATM transactions. If self-service customers are forced to use the same channel as customers who are making remote-assisted transactions, waits could be longer, and dissatisfaction could result.

I believe that NCR APTRA Interactive Teller should be an integral part of future branch transformation designs. However, deploying AITs with ATM functionality in an across-the-board approach might be a flawed strategy. When deciding upon dual-mode functionality, exercise caution and consider whether it will ultimately have a positive impact on self-service channel.

ATM Marketplace is pleased to introduce new blogger Terrina Rishel, president and CEO of ATM Authority. Terrina began her career helping Chrysler dealerships implement interactive electronic solutions, then worked at EFT network Magic Line before co-founding ATM Authority. Terrina has written extensively on employee engagement and leadership, which she will blog about in addition to industry issues.