Abstract
Mercator Advisory Group report examines new ATM capabilities and increased
value for financial institutions and customers alike
Boston, MA -- Financial institutions are being squeezed on both the
revenue and cost fronts, creating a need to become more efficient and
customer-centric than ever before. This dynamic is creating new opportunities
to extend the reach of the Automated Teller Machine (ATM) channel. This
channel will play an increasingly important role as Fis seek new cost savings
avenues, enhanced customer interaction, and process improvements in the branch
channel.
In new research, The Evolution of the ATM Banking Channel, Mercator
reviews the important role that ATMs play in financial institutions' overall
banking channel strategy. Intelligent deposit ATMs provide new means for
financial institutions to extend ATM use beyond simple withdrawals and
deposits. This report examines the wide range of additional capabilities these
machines offer.
Highlights of this report includes:
- An overview of the current state of the ATM channel and its role in making
self-service banking more efficient and customer-focused.
- The role that new-generation ATMs can play in an integrated channel
strategy.
- An analysis of the ways the ATM channel can add value to financial
institutions and customers, creating a win-win situation.
- A review of numerous capabilities available now (and in the near future)
that will allow ATMs to be a foundation for an effective multi-channel
strategy.
"We are at an inflection point in the evolution of the self-service ATM
channel. Macroeconomic conditions are forcing financial institutions to
explore new ways to reduce costs, enhance the customer experience, and
decrease the workload of branch personnel on basic tasks allowing them more
time for customer interaction. Advances in technology offer new, different,
and creative ways for customers to conduct an increasing number of business
transactions on their own. And new regulations provide a window of opportunity
for many financial institutions to upgrade their ATM fleets and leverage
expanded functionality," Ed O'Brien, director of Mercator Advisory Group's
Banking Channels Advisory Service comments.
This report is 26 pages long and has 11 exhibits.
Companies mentioned in this report include: Diebold, NCR, Nautilus
Hyosung, Triton, Wincor Nixdorf, Ugenius, Coastal Federal Credit Union, and
University Federal Credit Union.
Members of Mercator Advisory Group's Banking Channels Advisory Service
have access to this report as well as the upcoming research for the year
ahead, presentations, analyst access and other membership benefits.
Table of Contents
Executive Summary
Introduction
Current State of the ATM Channel
- ATMs Largely Unchanged -- Until Recently
The ATM Channel: At A Crossroad
- ATMs Poised For A Change
- ATMs Are Evolving To Become A Self-Service Powerhouse
- Catalysts for Change
User Profiles
- ATMs: A Main Reason For Bank Branch Use
- Customers Use Of The ATM Channel
- Overall, Customers Are Satisfied With Their ATM Channel Experiences
- ATM Availability Can Be A Key Part Of An Effective Retention Strategy
- ATM Deposits To Increase As More Intelligent Deposit Machines Enter FI
Fleets
- Customers Show Strong Interest In Exploring New Ways To Deposit Funds
ATM Channel Expansion Opportunities
- Advanced-Function ATMs Offer New Capabilities
- New Software Capabilities Increase ATM Availability, Reliability, and
Security
- Despite Great Potential, Inhibitors Exist for Advanced-Function ATMs
ATM Channel Expansion Opportunities
- Strategic Implications
- A Time For Change
- Part Of A Retail Delivery Strategy
- ATMs Vs. Evolving Channels
- Copyright Notice
Table of Figures
- Figure 1: Estimated ATMs in Service Worldwide in 2015
- Figure 2: The Evolution of the ATM Channel
- Figure 3: Reasons for Bank Branch Use
- Figure 4: Communication Channels By Task
- Figure 5: Satisfaction With Communication Methods
- Figure 6: Reasons For Not Changing Primary Financial Institution
- Figure 7: Customers Showing Interest In Using ATMs For Depositing Funds
- Figure 8: Interest In Using New Ways To Deposit Or Cash A Check
- Figure 9: Intelligent Deposit ATM Screen Example
- Figure 10: " Envelopeless" Intelligent Deposit ATM
- Figure 11: Evaluating The Cost And Value Of Advanced-Function ATMs
