The ATM network can become a profit center

Financial crisis caused changes in all spheres of retail banking. The sales channel via ATMs did not become an exception and underwent in-depth examination of those who are focused on new online and mobile channels.

Recent researches of the industry of ATMs showed that integration of channels and the offer of new services will have the top priority at banks in 2012.

ATMs still are one of the most used contact points of bank with the clients, the number of banknotes in the Eurozone increases by 9% annually and cash which, considerably receives in ATMs, still contain 78% of retail payments in Europe. Even if the percent of use of cash will decrease by 17% every year, use of cash all the same will not fall lower than 1 billion a year till 2205.

So, how it is possible to reach improvements? And how the innovation ATM technology looks?

Increase functionality and expand a range of services

The offer of new services is an obvious way of increase in income and banks investigated this option a set of methods. Use of the mobile phone was very positively apprehended in the market of Great Britain and not so long ago British government offered that banks considered the possibility to transfer money for charity via ATMs. Anyway, it is necessary to think what ATMs are suitable for certain services. For example, it is inexpedient to offer the full-function ATM in populous shopping the center. And not only because perhaps not all services will be in demand, but also because most of people who want to withdraw only quickly money will be forced to wait for those who for use of the ATM need some time. When the correct arrangement is selected, such services, such as, dynamic swapping of currency, a lottery, printout of the ticket for an action and payment of accounts – here the short list of services which the bank can offer. With individual marketing, clients will be able to submit applications for the credit using the ATM and to use other banking products.

Integration of the ATM into the mobile phone

Today far-sighted banks do not consider ATMs as something competing with mobile and online channels, on the contrary, the ATM can act as addition. For example, in Kenya there is a successful service of mobile payments M-Pesa which for quite some time now included a cash disbursement option via the ATM. Also, in March of this year FNB (the First National Bank) in the Republic of South Africa announced that it begins use of mobile phones and SMS for providing temporary PIN codes using which it will be possible to receive cash in the ATM without use of the bank card. One of the largest savings banks La Caixa of Spain also shows a good example of integration of channels. The financial institution in Barcelona installed contactless ATMs in three places to which read out data debit the card if to carry out by her near the card reader. The next step will be, certainly, that these cards will be built in the smartphone, then clients will be able to scan the phone instead of the card.

Of course, reliability of such system still is carefully checked and a number of thorough tests before the technology is started should be carried out. Because of the fact that time frames of similar projects change all the time now banks pass to automatic testing that allows to test a system even in development process instead of waiting for completion of works. It also means that projects pass more smoothly as testing of each component strictly is not connected among themselves.

Setup of ATMs according to individual needs of the client

One of the key moments of increase in income from ATMs – to achieve that the client used the ATM for the different purposes more. An opportunity to configure the ATM according to preferences and personal characteristics of each client is defining here. The design of the screen and available ATM functions can be synchronized with settings banking online, and the promotion of products which is based on modeling of preferences of this or that client can increase considerably chance of cross-sellings and sales of more high-class banking services. Also it is necessary to remember that advantages of the offer of technical capabilities of higher level can be reached only when they are reliable and effective. For this purpose ATMs should pass additional test to reduce risk of the errors arising in work of the existing steadily working application.

Promotion of the innovations described above can bring long-term benefit for business of bank, but it is necessary to remember that for successful work the high level of the provided services and excellent quality should be combined. And only those banks which have the correct infrastructure and the best embodiment of innovations in practice will be able to achieve success using changes in the field of ATMs.

Development of a system of ATMs has critical value in the future and will allow to remain to bank competitive, but for maintenance of the high level of service, elimination of errors and idle times in work technology innovations should be supported by reliable and effective infrastructure.