More than half (51 percent) of financial institutions expect that, within the next four to five years, their ATMs will integrate with mobile devices.
What's more, within the next four years, more than two-thirds (68 percent) expect to offer cardless transaction support (e.g., one-time use PINs and bill pay); 58 percent believe they'll be mobile wallet-enabled; and one-quarter believe their FI will be focused on integration with the "pays" (i.e., Google Pay, Samsung Pay, Apple Pay, et al.)
It's pretty remarkable, really, when you consider that not that long ago, ATMs weren't even talking to one another.
But during a live webinar last week introducing the new report, "ATM and Self-service Software Trends 2016," KAL ATM Software Executive Vice President Steve Hensley said he discovered something in the report that surprised him more than FIs' eager adoption of mobile fintech.
Never mind all the new ATM functionalities available today — what Hensley didn't expect was that 7 percent of financial institutions worldwide still would not be up and running with something so fundamental — and so critical to keeping cardholders happy — as remote ATM monitoring software.
"As important as ATMs are ... the ability to know remotely know what's going on; how much cash is in the machine and the state of the machine, and to be able to remotely fix the machine without having to dispatch a technician to the site is extremely important," Hensley said during the webinar, which highlighted results from the survey that underpins the report.
Now in its ninth edition, the report was launched in tandem with the live one-hour event.
Hensley said remote monitoring capability becomes especially critical given survey results showing that the importance of the ATM channel will only increase in the foreseeable future, as a growing number of machines perform a growing number — and variety — of transactions.
"You have to put a bunch of the [survey findings] together to come to this conclusion, but you think about the answers to questions of cost containment and so forth," he said. "Maintaining an ATM estate is a big part of the operational cost of ATMs and minimizing the number of times when you dispatch somebody when you didn't need to is critically important.
"So I think that's an area that banks really need to focus on in the future to make sure that they remotely know and can manage everything about the ATM estate."
This wasn't the only instance where the study found some banks moving forward with fintech plans while others were still trying to catch up with last year's trends.
The survey revealed that nearly one-third (30 percent) of respondents are still making plans to upgrade their ATM fleet's operating system from Microsoft Windows XP to Windows 7 — more than a year after support for the older OS ended.
Meanwhile, nearly one-quarter (24 percent) are already planning their migration to Windows 10 within the next four to five years.
Hensley also expressed concern over the response of some survey participants to a question about security.
Asked, "Which statement best identifies your bank’s confidence in the security of ATM and self-service software?", nearly one-quarter (23.1 percent) of banks polled said that their ATMs were "very secure" from hacks, malware and other types of attack, and that "nothing more needs to be done."
"I think that's a pretty dangerous attitude," Hensley said. "But about a quarter of the banks said, 'We're right on top of this thing; we're very secure.'"
On the other hand a wide majority of bankers surveyed said either that more could be done (62.3 percent); or that much more needed to be done (10 percent) to ensure the security of their institution's fleet. Of those concerned about security, 23 percent said they would be making security-related technologies a primary focus of their software considerations over the next four to five years (see graphic, right).
Other areas of focus included:
- adaptation of new concepts for the user interface (i.e., mobile-type interactions), 42 percent;
- cross-channel integration (aka, omnichannel), 35 percent;
- better management and distribution of software updates and changes, 28 percent;
- support for alternative methods of identification (i.e., ApplePay, Android Pay, mobile wallet), 25 percent;
- new application architecture (e.g., thin client, cloud computing), 19 percent;
- upgrades to communications infrastructure, 7 percent; and finally,
- that 7 percent who said they'd be getting on board with remote monitoring software.
For those who couldn't make the webinar, the recorded playback (with accompanying slide deck) is now available online. For those who wish to review the survey data and analysis, a PDF of the the full report is available for free download.
/ 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