The need to reinvent ATMs in the digital storm

As countries are gently easing out of lockdown, it is important for banks to understand how best to reinvent ATMs. Besides contactless, there are other options that focus on the architecture, operating model, and end-to-end proposition.

Without doubt, consumer behaviour and needs across all generations has irrevocably changed – there is now an increased appetite for a digitally enabled omnichannel consumer experience as new competition has entered the market, interest rates are at a historically low level, revenues and margins are reduced, and unemployment is high with consumer debt at record levels.

In some areas, banks have started to see ATMs as a burden and sought partners or third parties to take responsibility for them.

Nevertheless, the desire for cash still exists, even though consumers are becoming more accustomed to digital payments. There was an initial fall in cash usage during the pandemic, but RBR’s “Global ATM Market and Forecasts to 2025” highlighted that this trend is reversing with worldwide cash withdrawals figures at CAGR of 2.1% from 2019 to 2025.

The ATM and its family of devices are essential to the infrastructure of the modern branch as they can offer 24 hours local or remote service across the whole range of products and services. This could lead to different model branches including white label and shared branches as well as maintaining access to banking services for customers.

To welcome and anticipate this expected boost in cash circulation, financial institutions must act now. This could be done by implementing policies that enhance ATM security, reduce the total cost of ownership, and improve, modernise, and personalise the customer experience.

Plan ahead and stay competitive by following a few simple steps:

1. Implement innovative self-service banking technology, combined with assisted and remote banking services, which include reforming a bank branch in a community so that it serves as a focal point for financial and other services.
2. Evolve ATMs located within the branch in advanced self-service terminals with add-on services such as live video calls with financial product experts, which can allow access to cash to be subsidised through generating new revenue streams.
3. Upgrade traditional self-service automation architecture to remain relevant. The context for this is an increasingly wide range of new digital channels, innovative technologies, and advanced hardware devices.
4. Pooling – As banks face continued cost pressures and reduced profitability in the ATM channel, ATM pooling allows them to maintain widespread cash services for the future in an efficient and cost-effective way.

End-to-end ATM software: the advantages

Previously deployers might have focused largely on increasing ATM numbers, but now there is greater emphasis on investing in robust software solutions and reduce costs.

As quantity becomes less important and quality increasingly moves to the forefront for deployers and their customers, equipping ATMs with the right software will help them to stay relevant, competitive, and secure in an ever-evolving industry.

Today’s market requires something that allows the ATM to behave like any another digital channel so that customers are able to access their bank in a way and at a time that suits them. It is vital to be able to offer expanded services across self-service and other channels using a framework that was built for that purpose.

In order to allow ATM owners to adapt to meet these needs, Auriga has joined forces with ACI Worldwide to launch a next-generation ATM and self-service banking platform aimed at improving the end-to-end channel banking experience for consumers globally. The joint solution will enable banks to define an integrated channel strategy, optimising and transforming their branch and ATM networks.

Key benefits of and end-to-end self-service banking solution are:

• Increased choice and freedom from the constraints of the legacy model
• Enhanced customer satisfaction, through a simplified, consistent omnichannel customer experience, including ATM, branch, mobile and internet channels
• Broader transaction support
• Ability to speed up modernisation, by isolating the terminal management layer and reducing the time to integrate new channels faster to market
• Faster time to market, through configuration and scripting
• Lower cost of ownership by
  • providing greater choice of hardware
  • reducing the cost of cash through improved forecasting and cash recycling
  • cloud deployment capabilities
  • simplified management of the ATM environment
• Increased security
• Revenue opportunities (through targeted advertising, product sales and fee income).

Auriga and ACI can offer all ATM-driving institutions, whether they are a bank or not, the absolute best of breed solution unmatched by any other vendor or collection of vendors in this space.

This will bring about advancements to the ATM channel. Customers will benefit from a 21st century, next generation, branch network that will provide the best of all worlds and restore the relationship between banks and their users.