More and more consumers are accessing their financial accounts via mobile devices and the Internet. It's interesting to consider where and how the ATM will fit into this changing payments world and how ATMs, mobile devices, and online banking platforms will intermingle and coexist in the future.
There continues to be a healthy demand for cash across the globe, so there's no question cash will be important to consumers worldwide for many, many years. The advanced-function of automated deposit capabilities allows for ongoing cash recirculation. This cuts transportation and replenishing costs and helps keep cash competitive.
Statistics show a significant increase in automated deposit-enabled ATMs. In 2009, there were 464,000 ATMs installed in 46 countries. Retail Banking Research projects the number of deposit-taking ATMs will increase to 1.3 million out of a total ATM base of 3 million by 2015. Interestingly, the popular deposit taking, cash-recirculation ATM marks only the beginning of ATM innovation. The next big challenge ATM evolution faces is determining how ATMs will interact with customer-owned devices — including desktops, laptops, tablets, and smartphones.
In fact, mobile phones and ATMs are already beginning to interface. In some areas, money can be taken from ATMs using mobile phones in cardless transactions. Future innovations include allowing consumers to use their mobile-banking app to pre-stage an ATM withdrawal or transaction.
There are a number of ways in which ATMs are evolving to become more customer-friendly and intuitive in a mobile-digital world. One way to improve the ATM-mobile connection is to link cash and cashless payment methods into one system, maximizing consumer convenience and choice.
This is where financial institutions come in. FIs must work to link self-service, branch, and cash on deliveries together as integrated delivery channels. This will ensure their customers can easily make online and mobile payments, as well as use the ATM for a variety of services.
There are a couple of different models being considered; these will allow customers to access each of these different "bank keypads" seamlessly and consistently. One model involves making the ATM the "hub," linking the FI and the branch to the customer and to his or her set of CODs. This would mean linking the following terminals into the ATM hub: mobiles, tablets, automated depositories, kiosks with input/output, kiosks with or without video, and desktop terminals with printers and scanners. This multi-functionality, which includes offers such as end-to-end check processing and services like invoice payments at the ATM, would provide added value to consumers.
Video banking at the ATM is another possibility. The potential for tellers to interact with customers at the ATM via video, brings the FI closer to the customer without sacrificing the convenience and cost saving of the remote delivery channel. Video banking combines the benefits of 24-hour self-service with the human interaction customers receive at the branch.
With each of these innovations becoming very real possibilities, it appears the branch of the future will be a customer-centered, multi-function, multi-device environment. Further, ATMs of the future will interact with desktops and all types of mobile devices; as well as a number of other technologies and channels.
