Blog
Will cupcakes save the ATM from extinction?
January 22, 2014 by Richard Buckle — Founder and CEO, Pyalla Technologies, LLC
I shouldn’t say I was surprised by some of the comments that followed my last post quoting WebAction co-founder Sami Akbay, who said,"PCs, for instance, are practically dead — the transition needs to happen between the mobile devices and ATMs. This brings significant focus and importance to real-time processing of transactional and big data ... "
The notion of death of the PC is almost certainly going to generate some response from readers, and in this case it did. That it occurred over a reference that didn’t also include the rest of Akbay’s statement aroused my curiosity.
The ideas that a transition needs to happen between mobile devices and ATMs, and that transactional data processing should take place in real time real-time are both very astute observations and worth a second look, even if they weren’t central to the comments expressed.
Essentially, I believe that what Akbay was saying is something many of us are witnessing firsthand across our ATM networks.
Real-time processing of transactions is escalating and is becoming a priority for financial institutions just as our love for mobile devices, smart or otherwise, continues to grow. Persuading the majority of us to keep using an ATM is going to require further innovation and indeed, potentially integration — otherwise many of these machines (particularly in developed countries) will just gather dust.
In case you missed the recent post, "Consumers want real-time payments — from their primary FI," blogger Terry Dooley quoted a recent FIS study that looked at consumers and real-time payments: "First, a significant portion of the population is showing an interest in using real-time payments. Second, consumers expect those payments to be mobile, immediate, and convenient. Third, the majority of those interested in real-time payments are looking to their financial institutions to provide the service.”
So, here’s the deal about real-time payments: We only think of doing something "this very instant" when we are reminded of it, and for the majority of us, these reminders are usually triggered by a text or a call to our mobile phone. They go hand-in-glove, more tightly than some of us might have considered — the mobile revolution is adding to the sense of urgency over real-time payments.
Furthermore, our only interest in an ATM may be that it either performs a task faster than can be done on our phones or tablets (and here the size of an ATM display may help), or that we need a printout, a receipt or a ticket. On the other hand, perhaps something even more satisfying, some simple gratification, will continue to drive much of what we do — including interaction with an ATM.
The transcription of a recent CNBC report, "Without rebirth, malls face extinction," quoted Rick Caruso, founder and CEO of Caruso Affilliated. He said, "American malls are facing a rebirth, and without a complete reinvention, they will be extinct within 10 to 15 years. In order to compete with the growing presence of online retail … physical stores need to focus on delivering an experience that customers cannot find on the Web. What's more, physical stores cannot only consider themselves to be in the retail industry, but need to embrace the hospitality industry as well."
Enough said. ATMs need to become more integrated into the real-time world surrounding them, and by this, we mean mobile devices. They also potentially need to provide services that you cannot get from the Web, either because of the presentation format or the need for secondary output such as coupons, tickets or receipts (and increasingly, requiring a more secure environment).
But modern ATMs "need to embrace the hospitality industry"? Surely Caruso must be dreaming.
Further on in the CNBC report , Candace Nelson, founder of Sprinkles Cupcakes, responded to Caruso's observation that "[What’s] essential to our customer: creating an experience that is magical, creating an experience that is memorable."
To this, Nelson added, "This has meant the invention of a cupcake ATM machine, where consumers can swipe their credit card at a machine and get a freshly baked cupcake at 2 a.m."
The intimacy between an FI and the consumer interacting with the ATM is priceless —and not something that any FI wants to walk away from. Cupcakes might not be everyone's cup of tea, but they should have us all rethinking and revisiting exactly what user experience we are providing the consumer, our customer.
It has been reported on this site on more than one occasion that FIs and ATM owners seek the next big revenue generating opportunity from ATMs that support multiple revenue-generating capabilities. Referencing quotes about PCs being dead might generate comments but surely, transitions to real time and the integration with mobile devices will prove even more contentious in the months and years ahead.
Understanding the business ATMs are really in too will tax the creativity of many FIs and, if history tells us anything, there will be a lot of duds along the way. We might not all agree that ATMs are part of the hospitality industry, for instance, but the possibility of getting a fresh cupcake at 2:00 a.m. should have us all reconsidering our options for future ATM deployments.
Read more about ATM innovation.
About Richard Buckle
Richard Buckle is the founder and CEO of Pyalla Technologies, LLC. He has enjoyed a long association with the Information Technology (IT) industry as a user, vendor, and more recently, as an industry commentator, thought leader, columnist and blogger. Richard participates in the HPE VIP Community where he is part of their influencer team.
