Blog

New ATM targets Millennial generation

March 12, 2013 by Jim Ghiglieri — Senior Vice President, Corporate Communications, SHAZAM

Influenced by the expectations of the Millennial generation (aka "Gen Y"), Diebold Inc. is reimagining the automated teller machine. The company has developed the first ATM that includes integration with mobile devices via the cloud, allowing consumers to complete secure, cardless transactions. It also features a new user interface that enables touch gestures, such as flick and drag, commonly used with smartphones and tablet devices. The familiar multi-touch style has officially made its way to the ATM.

Diebold's conceptual ATM interface looks and acts like today's mobile devices, with similar navigation and controls. The ATM is also paperless, delivering transaction receipts via text message or email, based on users' preferences. This new ATM assumes that the popularity of mobile devices is driving consumer expectations.

The new ATM offers both cardless withdrawal and pre-staged, third-party money access. For both transactions, a user integrates his or her mobile device with the ATM byscanning a quick response code on the ATM's screen. Doing so syncs the device via a cloud-based server and authenticates the user — without requiring an ATM card.

After the devices sync via the cloud, a transaction screen appears on the customer's smartphone where they can selects the withdrawal amount. The cloud server then sends a one-time code to the smartphone, which the customer enters on the ATM screen to authenticate the transaction and receive cash.

With smartphones used as authentication devices, cardless transactions reduce consumer security risksrelated to lost or stolen cards, as well as the risk for skimming. Privacy is enhanced when users input transaction details on the smartphone screen rather than the ATM screen. In addition, the one-time authentication code expires immediately after completing a transaction.

A pre-staged, third-party money access transaction offers a unique option for completing person-to-person payments. The customer inputs the payment amount and recipient's contact information, which can be selected directly from his or her contact list. The recipient then receives a one-time code he or she can use at an ATM or branch to receive money.

Because the ATM utilizes cloud-based services, it does not require an onboard computer, which means reduced power requirements. Without card readers and receipt printers, the terminals use less hardware, which means less use of raw material. The ATM is also paperless, meaning no paper waste from receipts. In addition, with less hardware, and no dispensable paper to replenish, Diebold says the new ATMs should require less maintenance.

Diebold plans to launch pilot testing of its millennial-inspired ATM with FIs later this year. Would your customers be excited by an ATM solution like this? Drop a note in the comment section to share now you feel about this "next generation" ATM.

About Jim Ghiglieri

---

None

Connect with Jim: