ATM banking services have evolved well beyond basic cash withdrawals as financial institutions look for ways to provide customers with more convenient self-service options. Features such as intelligent deposits, check imaging, enhanced receipts, and even videoconferencing can allow consumers to complete transactions that once required assistance from a bank employee.
Consumer research supports this evolution of the ATM channel. Customers have expressed interest in expanded capabilities, particularly the ability to cash checks and receive more information while conducting transactions. As banks seek to reduce operating costs without sacrificing service, advanced ATM functionality can help shift routine transactions toward self-service while providing customers with greater flexibility in how and when they bank.
As banks add new features such as videoconferencing and check imaging to their automated teller machines and self-service kiosks, research from Synergistics confirms that this is an appropriate strategy that suits consumer preferences.
The research firm asked 1,000 internet-using households what they would like to do at an ATM that they can’t do today. The most common answer, chosen by 59% was, “cash checks.”
Consumers most typically deposit personal checks (65%), payroll checks (38%) and cash and coins (36%) at ATMs, the survey found. Eighty-one percent get receipts at the ATM; most are interested in receiving receipts on their mobile phones. Only 23% experience overdrafts due to ATM withdrawals, but they would like to know about overdrafts at the ATM.
The ATM channel is expanding and becoming more relevant and important with the increased use of intelligent deposit ATMs. And the ATM channel is poised for future growth as financial institutions look to reduce costs while improving customer service. These points are reviewed in detail in an upcoming Mercator Advisory Group report entitled “The Evolution of the ATM Banking Channel.”
The expansion of ATM banking services demonstrates how the channel can remain relevant even as consumers adopt online and mobile banking. Rather than simply dispensing cash, modern ATMs can handle increasingly complex transactions, including check and cash deposits, while providing customers with more information and control over their accounts.
Consumer interest in capabilities such as check cashing, mobile receipts, and overdraft notifications also highlights opportunities for financial institutions to improve the ATM experience. Adding functionality that addresses specific customer needs can make self-service banking more useful while potentially reducing the volume of routine transactions handled by branch employees.
Intelligent deposit ATMs and other advanced technologies could therefore play an important role in the continuing evolution of the branch. As financial institutions evaluate investments in their physical banking networks, expanding ATM banking services can provide a way to improve convenience, increase operational efficiency, and give customers additional options for completing everyday transactions. The ATM channel may continue to evolve alongside digital banking rather than being displaced by it.
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