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Virtual Teller ATMs: In demand and increasingly so

April 10, 2013 by Mark Smith — VP of Financial Solutions, Kahuna ATM Solutions

When you put together the costs of real estate, human resources and sheer operational expenses of a branch, they might far exceed any justification to keep a location open.

Today’s consumers have migrated to online banking, mobile banking or non-bank programs that allow them to manage their money in a virtual manner. It is likely that tomorrow’s banking customer will never step foot in a bank location to establish or manage an account.

This demographic of new banking customers will enjoy access to their bank programs in ways our parents couldn’t imagine. With the exception of getting cash, every service is now capable of being acquired via the Internet.

The concept of virtual tellers has been around for quite some time. In varying degrees, it has evolved to be a common method of reaching consumers on a global level. Whether an actual person or pre-recorded content triggered by a question, the purpose of these virtual assistants is to keep the transaction moving forward.

Should the consumer get confused and need help, this service will keep him or her from walking away. The personal interaction puts customers at ease and they remain confident in their bank.

Customers still need to know the bank cares about the quality of service they receive. Personal touch still matters — but now that touch is virtual. The clear value to the bank is that their customers will have reliable access to bank programs and will have a direct experience in the event that they need help.

If a bank has closed a branch location, it’s likely they’ll have left behind a full-function ATM so their customers are still served in that community. Customers understand the changing times and know that they’ll have fewer branches to conduct their banking business. As long as they have an access point in the same area where the branch was located, they don’t feel abandoned by their trusted institution. Having access to a virtual teller at this location will help guarantee that a stellar customer experience is always available.

Banking programs are rapidly changing and much more can be offered at an ATM. Many consumers will intuitively know how to use deposit automation and check imaging, or how to pay a bill at the ATM. However, there will always be first-time users of these services who get confused and are then stuck in the transaction.

This is where the value of the virtual teller comes in quickly; it is a means to educate the customer about the technology and how simple it is to use. Once they’ve successfully completed a new type of transaction, they will likely repeat the process time and again — without the need for teller assistance.

Banks are also counting on demands from the new consumer demographic to validate these decisions. Since the pattern is showing that online and mobile banking are rapidly on the incline, banks are counting on a tech-savvy generation to embrace virtual access and assistance.

Tomorrow’s customer won’t expect the hand-holding experience we had when we signed up for our first ATM cards. None of the newest technology will alienate them — they are surrounded by it today and are comfortable in a virtual environment for business matters.

It would be astonishing if a customer seeking a new banking relationship didn’t base a decision partly on the ability to use a smartphone to image and deposit checks, for example.

Virtual tellers are just becoming more widely available, but there will soon come a time when they're the norm, not the exception.