Branch Transformation

What's on the horizon for ATMs?

Going into 2023, ATMs are at a crossroads both in terms of overall banking strategy and the shift to more personalized banking.

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January 24, 2023 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

Going into 2023, ATMs are at a crossroads both in terms of overall banking strategy and the shift to more personalized banking.

Financial institutions are carefully examining how they will utilize their ATMs and some areas include personalization, cash recycling, ITMs and security, according to Simon Powley, senior director and head of banking advisory services at Diebold Nixdorf, referencing a Nielsen survey.

Personalized offers

One way banks are adjusting their ATM strategy is by delivering "hyper-personalization." This takes a variety of forms such as, "very specific targeted offers to make the experience for the customer or member to be as good as at the teller," Powley said in a phone interview with ATM Marketplace.

However, one challenge behind making personalized offers is how can banks "take BIN based knowledge of consumer and specifically target them," Powley said.

Another way banks are addressing this issue is through integrated channel services.

"Connecting previously disparate channels will enable institution employees to engage with the customer in multiple, more interactive ways," a NCR spokesperson said in an email interview. "Enabling simplicity and convenience will be a main priority in all customer interactions, including providing easy, digital-first ways to open and onboard accounts."

Cash recycling

One of the biggest trends in ATMs is the need for cash recycling.

"We are seeing unparalleled interest in this among FIs," Powley said. He emphasized this interest is coming across the board from small banks to large ones. As to what is driving this trend, Powley identified a number of reasons such as:

• Transaction levels are returning to pre-COVID numbers.
• Cash withdrawals are leveling off but cash deposits are increasing.
• An increasing need for self-sufficiency.
• Helps drive savings by requiring less visits from cash vendors.

As a result, financial institutions are looking at a variety of cash recycling tools such as configurable cassettes, recycling software and more. These tools can also in turn improve the overall customer experience.

"The more self sufficient you are equals better service for the customer," Powley said.

ITMs

ITMs are a controversial topic in the industry. While some see it as the future of ATMs, others see them as less useful and confusing to customers.

Powley said banks are still figuring out exactly how to use Interactive Teller Machines effectively, but they do provide an excellent value proposition.

He said the primary value is that they can expand bank hours to help more customers. Banks can use ITMs as way to provide a full service-service experience so customers can get done a variety of tasks at the ITM just outside of the branch's lobby.

The NCR spokesperson said ITMs can also help make life easier for branch employees.

"As financial institutions optimize their physical footprints, providing remote assistance through traditional self-service channels known as Interactive Teller Machines is becoming an increasingly important vehicle to offer customers digital-first, efficient self-service options and lower the cost to serve," the spokesperson said. "ITMs have also become a strong way to provide greater flexibility to employees, including work-from-home options for tellers, which is especially critical in the face of The Great Resignation and staffing shortages."

Software security

When it comes to ATM security, physical attacks will remain an issue for banks, as detailed in a past story on ATM Marketplace, but banks will also need to take a close look at software security in 2023.

One simple method is to make sure the ATM's software is up to date.

"Make sure security patches are going in on a regular basis," Powley said.

Banks may need to work with a dedicated company that can act as a subject matter expert and carefully examine any vulnerabilities with the ATM.

"Work with them on a security roadmap. Take recommendations and integrate them. Don't put it [security] off," Powley said.

About Bradley Cooper

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Bradley Cooper is the editor of ATM Marketplace and Food Truck Operator. He was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

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Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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