The Role of the ATM in the Transformation of Branch Banking

Sponsored content presented by Cummins Allison

The rise of electronic transaction channels has transformed the banking industry, making smaller, less expensive branches a reality and sparking new opportunity for the ATM. Today’s advanced technology provides new ways for ATMs to deliver a secure, enhanced consumer experience, lower costs and increased revenues. Harnessing this opportunity to maintain a competitive edge, however, requires that your financial institution maximize the potential of their ATM channel.

Increased efficiency. Reduced costs.

As the most highly used customer access channel in retail banking, the ATM is a critical touch point. Recent ATM innovations offer financial institutions the opportunity to transform the ATM from a cash dispenser to a consumer relationship management tool, helping to enhance loyalty among all consumers, particularly those who almost exclusively use the ATM.

Self-service channels such as ATMs help drive down costs by moving transactions from the branch teller line to the ATM. Bain Capital explains: At one large bank, branch employees spend an average of 60% of their time on low-value transactions, administration and idle time. Removing many tellers from the branches and replacing them with full-function ATMs would allow this bank to eliminate 15% of branch staff and redeploy them on high-value advisory-type activities¹.

Deposit automation has become one of the fastest growing new banking technologies. It offers consumers the advanced functionality and convenience that they want, and allows financial institutions to reduce expenses while they retain/expand their consumer base. Automated deposit at the ATM can also reduce ATM deposit processing costs by an impressive 65 percent, according to Tower Group research.

Differentiating the consumer experience

Even though the basic functionality of ATMs has remained relatively unchanged since their introduction almost four decades ago, recent technological progress is giving ATMs new life—and providing important opportunities for financial institutions to profoundly change the ATM’s role in consumer interactions.

This can be achieved in a variety of ways, including on-screen marketing and advertising programs that educate consumers about new products and services, increasing brand awareness and sales. ATM messaging can include promotions for credit cards, CDs, mortgages and products/services targeted to businesses.

Capabilities that help personalize and enrich consumer interactions and deliver better service are at the center of the ATM transformation. Technological advancements improving the quality of the ATM experience include image-enabled deposits, electronic receipts and remote teller assistance for challenging transactions.  Historical transaction preferences from CRM data can also be leveraged for personalization of services. This drives brand loyalty and promotes business growth.

To remain competitive, it is essential to have an updated ATM fleet with the latest technology and functionality. Updating equipment also ensures your compliance with government and industry regulations. ATMs are a proven, affordable way for financial institutions to expand their footprint and reduce the costs associated with providing service in the branch.

If you would like to learn more about our ATMs against your branch transformation goals, let’s talk.

Sources:

¹bain.com, Consumer Loyalty in Retail Banking: Global Edition, December 4, 2012