The ATM has automated cash dispensing and created a reliable channel for the provision of money into the market for around 50 years. The technology has been truly embraced by banks and Independent ATM companies.
However, technology has moved on since the ATM’s inception; we now have smartphones, the Internet and cardless transactions to name but a few developments.
The ATM of the future is able to embrace new technology because, put simply, the ATM is a computer and that computer is linked to the internet. When we combine this with technology being used by banks and retailers we can see a truly positive and growing future for the ATM.
Let us now look to the future, and investigate a bright and exciting market for this new technology.
Breathing new life into the ATM
The ATM has been highly successful at cash dispensing and balance enquiries, and like many good innovations little has needed to be changed. There have been pockets where functionality has grown, however these have been with a single infrastructure, which in today’s fragmented world are things of the past. And whilst little has changed with the ATM, it is now time for the rebirth of the ATM fully utilizing new technologies and moving the ATM into the next generation, to ATM 2.0.
To define ATM 2.0 let me explain what ATM 2.0 is. Put simply, it is an Internet terminal. The minute Internet terminal is mentioned then a world of opportunity and functionality explodes. And this is exactly what the new ATM 2.0 is – a world of opportunity.
The new device will not only dispense money and provide balance enquires but it will be an in store brand champion. Allowing the retailer or bank to promote chosen services to the customer. This can be media such as videos, adverts or to simply explain the transaction process.
The ATM 2.0 is there already, so why not use it to sell a new product in store, via a video on the ATM screen or promotion on the receipt? It allows for adverts to be run without the additional cost of purchasing more hardware. And can be location specific or national depending on the promotional requirements.
To support promotions, customers can click a QR code on the screen or take their receipt to the counter to receive discount on the product or service.
Other opportunities are with idle screen videos. Embedded into the transaction that can be totally customized to the demographics of the user as identified by their PAN on the card inserted. A perfect example is where a bank markets to win a customer from their existing bank by promoting their pre-defined strengths.
Further opportunities also exist to provide users with a discount, there are numerous ways to achieve this through the ATM 2.0. You can have advertising on the reverse of the receipt or you can have a tear off strip on the front or you can dispense vouchers or coupons. This allows you the retailer or bank to provide real time discounts to the user, building customer loyalty.
There are numerous other options such as toppers to provide real time advertising or dynamic marketing aligned to the time of the day to market to the different segments So the different demographics receive distinct, targeted messages.
ATM hardware is also developing, the headless ATM is imminent, where you can pre-stage transactions on your smartphone and fulfil or authorize them at the ATM.
We foresee immediate cardless transactions as follows:
• Emergency cash
• Money transfer
• Click & Collect
To elaborate; emergency cash, we all know about however, money transfer is another similar function where transfers can be pre-staged on smartphones and then fulfilled at the ATM 2.0. Another option is Click & Collect which allows customers to order foreign currency online, receive a unique PIN to their smartphone and retrieve the currency from a nominated ATM 2.0.
All of these are cardless transactions are generally where a smartphone is replacing a card. The functionality here is unlimited and purely down to your imagination.
ATM 2.0 can now become a connection point to loyalty programs. Whereby the more you use the ATM 2.0 the more points you gain. Then the ATM 2.0 can also be a way for points to convert to cash or transfer points to someone else.
Loyalty is key and again can be linked to the PAN so users can accumulate points but also redeem them.
Along with loyalty is the benefit of all these transactions – the data. The ATM 2.0 operator now becomes the proud owner of data which sets trends, buying habits etc. All defining the new ATM 2.0 user. And all of which will grow and develop with you and your ATM estate over time, becoming a huge asset for the business.
Redemption takes us totally into another area with online systems being redeemed, transferred or managed at ATM 2.0.
A few examples include:
• Redemption of online gambling winnings or topping up accounts.
• Withdrawal of funds held in accounts with Samsung Pay, Apple Pay or PayPal.
• Withdrawal of funds held with the new challenger banks.
Redemption can then be extended to other banking functionality. So the ATM 2.0 becomes the channel for the new challenger and online banks without the need for bricks and mortar.
New functions such as lotto tickets bring enhanced income through the ATM 2.0 channel. But also bring immense in store benefits which increase the benefits of the traditional ATM.
This is not just concept, this is reality. And it is being deployed using API based technology to transform the ATM into a new and exciting tool. A tool that is embracing new technology to give customers more services that they need and banks and retailers further opportuniites to communicate and assist their customers.
Written by Andrew Martin, Retail-BCG