News

Advanced software paves the way for next-gen ATMs, study says

July 26, 2018

Increasingly, banks are using advanced ATM software platforms to modernize customer ID and authentication, improve personalization and maximize the performance of ATMs and self-service channels.

Identification

The above findings from research and consulting firm RBR underscore that while most ATM transactions are still carried out via card and PIN, advanced software platforms can support a wider range of technologies and form factors.

NFC and contactless are emerging as the front runners, with QR codes and prestaged mobile transactions gaining ground. Mobile transactions via Bluetooth, and one-time codes, have yet to gain the same kind of traction, but are also likely to grow, RBR said in a press release.

Personalization

Banks that have implemented advanced ATM software platforms are now pressing ahead with preferred transaction types, banknote denominations, e-receipts and language preferences. In addition to a customized user experience, the integration of new CRM tools could generate additional revenue for deployers via targeted sales of products such as loans, according to RBR.

Monitoring and management

As many European and North American banks look to maximize, rather than expand, their ATM estates, efficient monitoring solutions have become critical. This market is growing: Two-thirds of banks interviewed by RBR now use a commercial solution. It is also dynamic, with many banks switching providers —  or planning to do so soon.

Software Deployment

Several major European banks are now seriously studying thin client ATM architecture, which would move the processing function to a central location, resulting in greatly streamlined ATM designs.

Smaller banks with more limited IT resources might look to cloud solutions, which would see third parties hosting their stored data and processing transactions remotely.

"Banks worldwide are now aware of the benefits of multivendor ATM software, purchased as a product in its own right, and are looking seriously at the practical benefits that these advanced software platforms support," Robert Chaundy, leader of the study, said in the release. "Advanced customer interaction, channel personalization and network monitoring have the potential to revolutionize the ATM experience for banks and customers."

The RBR study, ATM Software 2018, offers an in-depth international perspective on application and monitoring software. The report is based on interviews with 30 leading banks.