Cardless cash ATM access is emerging as a new way for financial institutions to connect mobile banking with traditional self-service channels. By allowing customers to initiate ATM withdrawals through their smartphones rather than using a physical debit card, the technology can make accessing cash faster and reduce risks associated with lost cards and card skimming.
Avidia Bank is bringing the technology to its customers through its partnership with FIS. The Cardless Cash feature within Avidia Mobile uses app authentication, mobile wallet technology, and QR codes to enable customers to stage withdrawals before reaching the ATM. The launch reflects a broader movement toward integrating mobile banking capabilities with ATM services.
Avidia Bank is one of the first financial institutions in New England to offer Cardless Cash ATM access thanks to their partnership with FIS.
Avidia Mobile’s Cardless Cash feature will enable consumers to interact with the ATM from the privacy and security of their mobile devices, stage a transaction before stepping up to the ATM and then receive an eReceipt for the transaction on their devices. It’s part of an ongoing effort by the bank to offer the latest in mobile banking innovation to its customer base. Cardless Cash joins a robust line of mobile banking features from FIS available within Avidia Mobile, such as remote check deposit and person-to-person (P2P) payments. Other enhancements with this upgrade will include the addition of Touch ID and Passcode to give customers quick access to app features.
“FIS continues to disrupt and redefine the mobile banking market, making it faster, safer and easier for customers,” said Douglas Brown, senior vice president and general manager, FIS Mobile, FIS. “Cardless Cash is one such advancement, making withdrawals simpler while simultaneously eliminating the risk of card loss or fraud.”
Unlike other mobile cash access models that utilize temporary authorization codes, FIS Cardless Cash at Avidia Bank uses the security within the app authentication process and registration of the FIS Mobile Wallet technology on the smartphone, therefore eliminating card skimming risk and fraud incidents for banks and their customers. With this QR-based technology in place, Avidia Bank will continue moving forward in the digital payments space with the addition of a mobile wallet feature within the Avidia Mobile app.
The convergence of today’s self-service channels, and most notably ATMs and mobile banking, are taking root at many progressive financial institutions. One of the most interesting (and promising) areas is with cardless cash (aka ATM prestaging or mobile cash withdrawal). Recent Mercator Advisory Group research notes that there are several compelling reasons for FIs to offer this feature – most notably the ability to withdraw cash at an ATM without the need for a card – with some withdrawals occurring in 10 seconds or less.
The introduction of cardless cash ATM access demonstrates how mobile technology can enhance an established banking channel rather than replace it. Customers still gain convenient access to cash, but the transaction can begin securely on a device they already use for other banking activities.
For financial institutions, cardless ATM withdrawals can provide additional security while creating a faster and more convenient customer experience. Eliminating the need to insert a physical card can reduce exposure to card-skimming fraud, while transaction prestaging can significantly shorten the time customers spend at the ATM.
As ATMs and mobile banking continue to converge, capabilities such as Cardless Cash could become an important part of financial institutions’ broader digital banking strategies.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
