Article

Omnichannel banking, branch transformation and doubling down on your ATM investment

Today's ATMs are valuable customer relationship and marketing vehicles that deliver a winning combination of cost-effectiveness and consumer convenience.

October 12, 2015

by Suzanne Galvin, senior vice president, Elan Financial Services

Over the past couple of years, ATMs have taken a Darwinian leap forward in technology, adding new capabilities from cash and check image deposit and video teller capabilities to biometric identification and card-free access with smartphones. These advancements now make the ATM the ideal centerpiece of an omnichannel banking strategy.

Omnichannel banking is designed to offer access to financial services across a variety of channels and to introduce more consistent interactions with the banking brand across all touch points — from the branch to Internet, call center and mobile banking to the new ATMs, kiosks and assisted self-service devices.

According to Synergistics, 37 percent of ATM users see the ATM as the primary banking channel. This makes the ATM the ideal channel for cross-selling, upselling, and increasing brand awareness, which will result in increased customer loyalty with a higher retention rate as well as the probability of acquiring new customers.

The new self-service economy

Today's newer ATMs, kiosks and assisted self-service devices perfectly align with the increasingly popular self-service and online channels used across so many businesses and industries.

The adoption and widespread use of self-service channels has become a vital addition to the U.S. economy. Today we find supermarket shoppers using self-service checkout registers, gas-buyers paying at the pump, airline passengers checking in at self-service kiosks and business travelers checking out using hotel kiosks.

The majority of consumers now trust self-service options to offer a superior transaction process and businesses see them as an integral component of their customer service and revenue generation strategies.

And this is where the branch transformation and omnichannel strategy fit so well around the ATM.

Financial institutions are looking to cut costs while increasing their revenues — but without diminishing customer experience. In the current competitive market, it is vital for retail banks to find a way to reduce the cost of providing services — and at the same time to exceed customer expectations.

Adding value via positive customer experience

From transaction personalization to customized one-to-one marketing offers, today's ATMs have become extremely valuable customer relationship and marketing vehicles that generate economic value through positive experiences and greater customer convenience.

As more and more people use online banking and ATM channels, banks encounter fewer face-to-face opportunities to cross-sell new services to customers. However, the arrival of several new assisted self-service devices will be a big part of the new branch and drive-through landscape.

Assisted self-service devices are similar to ATMs, but are generally equipped with additional components such as a speaker, photo ID scanner, signature capture device, microphone and handset.

Many analysts see these assisted self-service devices, also known as personal teller machines, or "PTMs" as the next evolution of ATMs for three reasons:

PTMs provide improved customer intimacy with a modest cost increment over ATMs — still delivering lower per-transaction costs than traditional branch transactions;
PTMs can broaden the transaction mix compared with ATMs; and
PTMs will likely show improved sales lead generation results over ATMs as a result of their more personal interaction with a live teller.

The timing could not be better to include PTMs in a branch transformation strategy. A recent Cisco Customer Experience Report reveals an increasing hunger for self-service among consumers, with a majority (61 percent) of the global population willing to shop in completely automated environments with stations that offer virtual customer service.

Why PTMs make sense

There are several compelling reasons why PTMs will become a key component of branch transformation.

Firstly, the devices are PCI compliant, so consumers can authenticate transactions the way they're accustomed to — using a debit card and PIN.

Secondly, the technology can give financial institutions a presence in new or remote areas where an actual branch might not be cost effective

Thirdly, and most importantly, PTMs can serve as a multifunction ATM or as a PTM at the customer's discretion.

So, for the millions of consumers who are more comfortable with self-directed ATM transactions, tellers are not necessary. But for those in need of coaching or who just prefer a human interaction, the PTM's remote teller will be a welcome option.

PTMs are groundbreaking and represent the future of banking, particularly when one considers that they can do 80–90 percent of the work typically done by a teller inside the branch.

Financial institutions that take the leap to ATM omnichannel and branch transformation will gain an edge over the competition. This technology will deliver much-needed bottom line benefits and provide banks with a viable plan to attract and retain customers, from millennials to retirees.

Suzanne Galvine is senior vice president of Elan Financial Services, a division of U.S. Bank. Elan provides transaction processing, terminal driving and monitoring and support services for more than 34,000 ATMs in the United States and supports more than 13 million ATM and debit cards.

photo istock