The ATM is an older technology that dates back to the 1960’s. These original “cash dispensing” machines are radically different from the over 3.5 million ATM’s in use today to fit the needs of today’s tech-savvy banking consumers. Today, Smart ATMs are popping up around the globe, giving consumers more choice than ever in today’s increasingly digital world, enabling the ability to access money, but now with the tap of a smartphone. Recently, Wells Fargo, J.P. Morgan Chase and Bank of America announced their plans for the roll out of Smart ATMs, with Wells Fargo setting up 13,000 cardless ATMs this year and JPMorgan Chase testing cardless ATMs in 600 locations.
Smart ATMs enable consumers to interact with financial institutions as one channel or device that encompasses an overall omni channel experience, reducing the risk of fraud from skimming.
In a recent interview with Jim Burnick, General Manager, Global Financial Solutions at Pitney Bowes Technology, he said, “technology is taking a front seat in old channels like the ATM. Some banks are installing video in kiosks for face to face transactions with tellers. Others are using physical attributes such as size of the machines or multi- functionality as a differentiator. Facial recognition software, biometrics and retinal scanning are innovative ideas being incorporated into next generation ATM’s to provide another layer of security for consumers, reducing the risk of fraud that may occur on mobile devices.”
But it doesn’t stop there. Banks are utilizing big data like never before to gain insights about consumer habits, branch networks and market segments to broaden their understanding of customers, uncover opportunity and manage risk.
Burnick pointed out, “Every transaction that happens at an ATM is part of the big data that banks collect in order to identify patterns in consumer behavior. As an example, if a customer uses the same ATM everyday in a certain location, you can gain a better understanding of their banking habits, which in turn can help you better understand where ATMs or branches should be located or removed because of the types of transactions occurring.”
Tools exist today that are helping banks standardize data, understand the relationships behind it, and provide insights into the entire consumer data landscape. Banks may use these tools to understand where the most profitable branch locations would be, predict demand and target marketing programs to make the biggest impact, among other things.
Jim adds, “Big data provides an additional capability for transaction analysis to take place with your customers. It allows banks to deepen or broaden relationships with customers and households by having a view of what neighborhood they live in, their income, and relationships that exist. As an example, if a bank knows you live in a certain area and have a brother who is starting college, it can market a targeted 529 plan to your parents.”
Smart ATMs and big data are just a few of the technologies revolutionizing the banking experience today. As we look towards the future and the new technologies being implemented to enhance the customer experience, there is no doubt your wallet will be changed for the better.
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