Blog

More relevant than ever: The changing face of the ATM

Financial institutions are investing more in high-tech features that appeal to cash-carrying millennials, and that's a great opportunity for IADs.

October 28, 2014 by Rebecca Hellmann — Marketing and Sales Coordinator, Welch ATM

A recent survey on FindABetterBank lands another blow against the trope that ATMs are an outdated banking channel for consumers. Younger customers (those under 30) reported using ATMs at least weekly.

However, only 28 percent of that same demographic said surcharge-free ATM access was a "must have." This is good news for financial institutions looking to accommodate the high-tech demands of millennials, who seem to understand that convenience costs money.

A Cummins Allison survey of financial institutions showed that financial institutions, far from buying into the belief that ATMs are on the way out, are planning to invest more in this technology. More than half (58 percent) expect they will either expand their ATM fleet or replace all or part of it within the next year.

What is more, on top of essential security enhancements in the form of software upgrades and EMV implementation, many institutions are exploring capabilities such as video tellers, biometrics and targeted marketing.

The Cummins Allison survey found that 64 percent of institutions are looking to install EMV readers; 31 percent plan to implement e-receipts; 24 percent are considering an upgrade to touchscreen technology; and 23 percent want to integrate targeted marketing into their ATMs within three to five years. These numbers are good news for consumers looking to benefit from increased convenience from their banks and credit unions.

ATM manufacturers and operators should be paying attention to this increased interest in self-service channel upgrades. Many institutions will be on the lookout for valued partners to help advance their plans for greater ATM functionality — it's an important opportunity for the ATM industry.

When asked what they look for in an ATM vendor, 95 percent of financial institutions cited "quality of product" and 94 percent cited "quality of equipment service" as top priorities. However, "price of equipment/services" (88 percent), "reputation of vendor" (87 percent) and "quality of sales support" (72 percent) ranked close behind as main considerations for new and continuing partnerships.

Financial institutions searching for new ATM partners should outline their expectations clearly before initiating the search for a vendor. Just as importantly, they should communicate these criteria up front, include them in contracts and use them as benchmarks for regular evaluation throughout the partnership.

photo: commonwealth bank of Australia