One week from today, ATM Marketplace will release an all new version of the free annual software guide, "ATM and Financial Self-service Software Trends 2016," sponsored for the ninth consecutive year by KAL ATM Software.
Also on Tuesday, Aug. 2, KAL and ATM Marketplace will host a free webinar highlighting some of the most significant findings from the study.
For the 2016 edition of the software trends guide, ATM Marketplace polled 434 respondents from all over the world, and from financial institutions and other ATM industry-related organizations of all sizes.
We hope you will register now to join us for a highly informative hour of analysis and insight from KAL Executive Vice President of Sales and Marketing, Steve Hensley.
In the meantime, we're pleased to present the excerpt below from the upcoming guide, which will include full survey results, analysis and interviews with industry experts.
Branch transformation continues to be a trending topic of discussion, but opinions vary as to which channel will see the greatest amount of change. Respondents in the software trends survey were evenly divided, with roughly half (48 percent) citing migration of teller transactions to the ATM as the chief driver of branch transformation within the next four years, and an equal number (48 percent) citing consumer adoption of mobile banking as the major change agent.
"For most customers five years from now, one or more [nonbranch] channels (online banking, ATM or mobile) will be the primary service touchpoints, and the branch will be a complementary service channel, most often used for complex or nonroutine service requests," an executive from one of the largest financial services holding companies in the United States with financial centers located primarily on the East Coast told ATM Marketplace.
According to Steve Hensley, KAL executive vice president of global sales, "One of the primary themes from the online survey is that banks are planning to transform their retail delivery systems by increasing the number of off-premise and in-branch ATMs to meet the anticipated growing volume of ATM transactions. In fact, about 75 percent of the banks in the survey said they expect ATM volumes to grow and 73 percent said ATMs will increase in importance and handle additional types of transactions over the next several years. It is very clear that the banks will continue to rely heavily on ATMs."
Raja Bose, Diebold Inc. vice president of global advisory services, echoed this sentiment. "We anticipate the role of the branch will continue to shift away from a purely transactional experience to a center of advice, learning and consultation," he said. "Also, we expect branches to complement banks' digital offerings by supporting overall digital engagement among consumers."
As to new self-service functionalities that FIs expect to be supporting within the next four years, cardless and contactless transactions (68 percent) claimed first place, followed by mobile wallet support (58 percent). Next in line were cash and coin recycling (56 percent) and teller transaction functionality at ATMs and kiosks.
But where would these new functionalities be without supporting software? Respondents expected that the chief focus for ATM software within the next four to five years would be integration with mobile devices, followed by adaptation of new concepts for the user interface (e.g., mobile type of interaction) and cross-channel integration.
"What is becoming obvious is that the banks with the best technical infrastructure are more capable of enabling the technical changes required to deliver better processes and a more rounded customer experience in branch," said Brendan Thorpe, global software engagement manager, Wincor Nixdorf.
Citing a Wells Fargo investor presentation, the Wall Street Journal reported in May that 72 percent of millennials (ages 18–34) and 50 percent of Gen X-ers (ages 35–50) bank on mobile devices.
"The simple issue is that mobile services provide greater speed, convenience and utility for customers on a device they use perpetually throughout the day," said Gavin Napier, consulting head of self-service for digital banking and distribution at Bank of Queensland.
It seems unlikely that the trend toward offering new functionalities and capabilities to customers via the mobile banking channel will abate anytime soon. Considering that customer experience, at 43 percent, ranks highest among most critical areas for change in the ATM space, the continued rollout of new mobile transactions and supporting software should be considered a given.
/ 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. She is now the editor of ATMmarketplace.com and BlockChainTechNews.com