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Guide looks at next-gen ATM management for omnichannel FIs

The recently published free guide 'ATM Monitoring Technology for Omnichannel Banking Systems' addresses the benefits and challenges of migration to next-gen ATM monitoring systems

November 20, 2015 by Suzanne Cluckey — Owner, Suzanne Cluckey Communications

From June to July of this year, ATM Marketplace conducted an international survey of 106 FIs worldwide on the topic of ATM monitoring technologies for use in conjunction with omnichannel banking services platforms. The results from this survey, as well as analysis of the findings, are compiled in the free guide, "ATM Monitoring Technology for Omnichannel Banking Systems," which ATM Marketplace recently published, with sponsorship provided by Auriga.

download the free guide

The guide's author, Robin Arnfield, also collected case studies for the guide from financial institutions that are working to develop effective methods for monitoring their omnichannel banking services.

And finally, Arnfield conducted interviews with industry specialists who work daily with FIs to address the multitude of considerations that accompany migrating operations from siloed structures to seamless, omnichannel delivery flows.

The following is one such interview with Francesco Burelli, partner at Innovalue Management Advisors, who shared his thoughts on the advantages and challenges of a move to next-gen ATM monitoring systems.

Q.Can you estimate the benefits FIs have seen from using the new generation of proactive ATM monitoring systems?

A.ATM availability is the outcome of several factors, including the type of monitoring systems deployed and how these are leveraged to take preventive or remedial action. Overall, we're seeing three trends taking place:

• increased investment in and sophistication of ATM monitoring systems;
• increasing use of third-party and non-OEM ATM monitoring systems; and
• an ongoing wave of internalization in which ATM operators move ATM monitoring functions in-house. This is particularly the case when the same outsourcer manages the ATM monitoring as well as the ATM support.

Based on our experience, we're seeing increased availability, improved ATM security and an overall optimization of ATM operations through the implementation of proactive ATM monitoring systems.

Q.What are the barriers or challenges faced by ATM deployers wanting to deploy ATM monitoring solutions?

A.Legacy ATM infrastructure is by far the most significant barrier to the deployment of ATM monitoring solutions. While siloed business units can potentially prove a challenge, the nature of the ATM business is such that a unified channel management approach is the best viable approach to ATM fleet management, regardless of the ownership of the service being deployed through the ATM. A unified ATM monitoring solution owned by the ATM channel management unit is in the best position to share information and work together with the other parts of the business in order to optimize the services provided through the ATM.

Q.What are the essential KPIs that need to be provided by an ATM monitoring solution?

A.The list of indicators can be summarized in two categories: real-time and historical indicators. Real-time indicators include:

• status indicators – for example, the actual ATM status (e.g., idle versus dispensing versus providing other services), cash levels and other dynamic indicators (e.g., number of withdrawal operations completed and value of cash dispensed).
  Some of these indicators should be referenced against historical trends (e.g., daily seasonality trends) in order to highlight anomalies of changes in behavioral patterns that could either require some optimization and adjustment or require investigation of unusual behaviors.
• fault information – for example, type of fault and time since fault occurrence. Historical indicators include statistical data about status and fault information that can be used for real-time benchmarking as well as for planning purposes.

Q.What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an omnichannel environment?

A.ATM monitoring is a mission-critical function of any ATM management that has an impact both in terms of ATM performance as well as in spotting and limiting fraud and crime losses. From our perspective, the best practices are:

1. ATM monitoring is best performed by a single function/ unit monitoring the whole set of ATM services and capable of providing regular feedback to the other functions. ATM monitoring should be jointly designed and regularly revised as a service unit that is supplied to other strategic business units within the wider organization. KPIs should be designed and set in a way to best serve both the spot management of the channel as well as to provide input to each service's strategic planning.
2. Adopt a unified and comprehensive monitoring approach to the ATM channel. This includes any third-party performance across all services that are provided through the ATM fleet.
3. Adopt a real-time monitoring platform capable of providing a view down to a single transaction level. This has to be scalable, highly configurable and easily connected to analytics software solutions.
4. Integrate and automate. Performance monitoring should be tightly integrated with a analytics platform as well as with a workflow solution whose reach should extend to the other units providing services through the ATM as well as to key internal and external strategic suppliers.

About Suzanne Cluckey

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Suzanne’s editorial career has spanned three decades and encompassed all B2B and B2C communications formats. Her award-winning work has appeared in trade and consumer media in the United States and internationally.