News

Automated cash handling at a bank near you

January 25, 2005

Over the next decade, advanced functionality is expected to gain popularity at ATMs owned by U.S. financial institutions, according to Tony Hayes, managing director of Dove Consulting's Financial Services division.

"The (ATM) device will become much more intelligent in the near future," Hayes said. "When you walk into a branch now, the teller recognizes you and knows you always get your money in tens, for instance. The ATMs in the future will be just as personal as a human."

In 2005, Hayes predicted the market will boom with ATMs that offer more personalized services.

This story and all the great free content on ATM Marketplace is supported by: Wincor Nixdorf

Saul Caprio, director of marketing and business development for Wincor Nixdorf (America), agreed. He said the acceptance of more ATM options is evidenced by the growing number of advanced-functionality pilot programs at some of the nation's largest banks, such as Wells Fargo.

Recycling option

Personalized ATM transactions won't be the only new feature to appear on ATMs in the United States. Caprio said that cash recycling, a concept popular elsewhere around the world, could take off in the States, especially since the passage of Check 21.

Banks and credit unions spend a lot of money processing checks and handling cash. Neither process is handled very efficiently, because of limited employee time and human error.

Gunnar Enroth, strategic development director for Swedish ATM manufacturer Banqit, said FIs typically bear approximately 40 percent of cash-handling expenses, which include the production of currency, distribution, storage and interest.

One way to reduce cash-handling expenses is by automating the process as much as possible, including cash handling at ATMs.

Check 21 is expected to help FIs reduce the costs of check processing, but few U.S. banks and credit unions have implemented ways to minimize currency-handling costs.

But that could change, Caprio said.

"When you look at check imaging (or cash recycling), almost every significant bank in the country is looking at some sort of piloting program," he said. "I think within the coming months, you'll begin to see limited use of cash-recycling machines popping up at banks throughout the country."

The increased automation of routine bank services, which has been widely accepted in Europe for many years, is just now catching on in the United States, Caprio said.

Wincor was one of the first manufacturers to produce a self-service cash recycling system in 1998. About 6,000 of its cash-recycling ProCash 3100 units are installed in more than 20 countries, including Germany, Switzerland and China.

Caprio said Wincor's ProCash 2xxx series of ATMs, which is marketed in the United States, is a family of modular units designed to change if and when the American banker is ready for more options. They can be used for traditional ATM functions, or they can be enhanced to offer services such as cash recycling.