ATMs Amidst Digitalization - ATM 2.0
The Digital Challenges for ATMSThe role of the ATM will inevitably change in the very near
future. In 2018, the total number of ATMs had declined for the first time in
over 50 years. This, however, does not spell certain doom as many have
immediately started predicting. ATM service providers have stepped up to the
challenges of the digital revolution that is sweeping the financial sector and
this ongoing transformation has, fittingly, been dubbed ATM 2.0.
Cash is No Longer King
Not so long ago, having cash dispensing machines on almost
any corner would have come in handy whether you were shopping for groceries,
out on a date or have just arrived in another country on holiday. But cash is
no longer the sovereign it once was.
Contactless payments have been experiencing a rapid rise in many markets. For example, in Australia, Canada and the UK, "tap and go" has edged out cash when it comes to payments under $100.
While the number of ATMs may be down for the first time in
half a century, there are clear signs ATMs are not going anywhere.
First and foremost, they are increasingly becoming number one means for retailers to make cash deposits, as banks continue reducing their costs by closing down branch offices.
ATMS as Branches
With banks closing and rethinking branches, a hybrid approach presents itself as a possible solution. Since branches are still the cornerstone of sales and customer advice, their importance is clear. ATMs are at the heart of a new solution, creating an environment where customer service is top priority, access to services is quick, and the ATM can immediately inform a staff member if assistance or intervention is needed.
The "ATM as
branch" approach also has the benefit of providing banks with more
customer information by utilizing
customer ATM feedback scenarios and
delivering new services to customers as soon as they're made available, like the bill payments functionality.
The Re-Invention of ATM
So what is ATM 2.0 then and how does it aim to reaffirm the
position of ATMs in the changing financial market? Despite the fact that the
choice of this new moniker appears as an attempt to court the contactless,
online crowd, the name ATM 2.0 does indeed point to an entire spectrum of new
functionalities ATM could offer its customers.
First and foremost, ATM 2.0s will still be, at their core, ATMs: they will dispense and (in some cases) receive cash, as well as dispense cash previously deposited by engaging the ATM recycling functionality.
But it's the
new functionalities that will greatly improve customer experience by enabling customers to withdraw cash by simply entering a one-time
code generated from the bank’s
mobile application, thus not using their physical cards for withdrawal.
Customers who don't have mobile banking can look up their balance on the ATM and discover how much money they have available before making a withdrawal. And there is also the ability to connect an ATM 2.0 to your electronic accounts and withdraw funds from them as well.
The interaction between ATM 2.0s and online systems may
allow customers to perform certain transactions that the previous generation
could not, from redeeming online gambling winnings to withdrawing funds from
mobile payment services such as PayPal, Samsung Pay or Apple Pay.
ATM Videos Capabilities for Branding and More
These, however, are just
the basics. ATM 2.0s are set to help with branding as well: their ability to
run videos means they can not only explain transaction processes to those who
aren't tech savvy but also display ads - meaning that if, for example, a store
has an ATM 2.0, it can use it to push a new product or service and in this way provide the advertising solution
without the need to additionally
install a promotion device.
But it doesn't have to stop there: let the customer capture a QR code or print out a receipt that will provide them with a real-time discount at the store's POS. And ATM 2.0s will also be a boon to loyalty programs, providing members with points for ATM which can then be converted to cash.
The possibilities of ATM 2.0 have just begun to be explored
and there are certainly many exciting developments waiting for us in the near
future.