ITMs move beyond video to self-service

Interactive teller machines in the past were typically just ATMs with video capabilities, allowing customers to speak to a teller on the screen. Now, ITMs are moving beyond video to offer full self-service banking.

Manufacturers are now producing ITMs that can handle banking services that typically only tellers could provide, such as loans, home equity lines of credit, and other features. In many cases, customers will not need to use the video teller service since they can perform the task themselves on the machine. This, in turn, frees up tellers for other tasks and enables the ITM to serve as a 24/7 device.

To learn more about how ITMs are moving into the world of self-service, ATM Marketplace spoke with Keith Lennard, VP of software at Hyosung.

Q. What would you say are the primary characteristics of ITMs?

A. The primary characteristic of an ITM is the ability to provide advanced transactions on a self-service device, allowing consumers to bypass the branch for over 80% of all transactions. The original ITMs enabled advanced transactions via a video teller utilizing the ATM essentially as a teller cash drawer. While this did provide a level of branch transformation, the infrastructure and remote teller cost could be extensive. The newer, more advanced ITM solutions minimize the use of video (or eliminate it completely) and deliver even more transactions via an enhanced self-service. This allows financial institutions to move from one teller for every four ITMs to closer to one-in-fifteen.

Q. What are some of the most innovative features we are seeing with ITMs?

A. The most innovative advancement in ITMs has been the introduction of core-integration on the ATM. Traditionally, ITMs either utilized the ATM network or required a video teller to perform "dual-entry" by controlling the ATM and a teller system simultaneously. This approach came with many limitations, such as the ATM network only accessing accounts tied to the card, network-imposed transaction limits, and video tellers only available within certain hours. With the ITM now connected to the core banking system, consumers can now access all of their accounts (even loans, credit cards, HELOCs etc.) without a remote teller. A core-connected ITM can now perform advanced transactions 24 hours today, not just when a video teller is available.

Another advancement of the ITM is the proliferation of recycling technology. With the ITM now recycling cash, it becomes far easier for ITMs to provide multiple denominations while simultaneously reducing armored carrier visits. Consumers can now perform the transactions on their schedule, receive the denominations they are seeking, while financial institutions do not have to worry about the cash deposit bin being full.

Q.How are they improving the branch experience?

A.A core-connected ITM truly allows the financial institution to achieve their branch transformation goals as tellers, both in person and via video, are no longer required to perform simple transactions and can be reallocated to other relationship-based activities. The branch experience is truly transformed as customers who enter the branch can be greeted and redirected to a lobby ITM where they can perform their transaction via self-service. They will then learn those same transactions can be performed in the drive-up lane, saving them the time and the headache of aligning their schedule to branch hours. As time progresses, financial institutions can right-size their staffing, allocate their human capital differently, and make future branch decisions with enhanced self-service as the foundation.

Q. What role does Hyosung play in this space?

A. Hyosung produced the first certified core integration in 2015, will have 20 certified cores by the end of 2021, and has over 100 financial institutions live with core integration. Additionally, Hyosung is the industry leader in recycling technology with over 10,000 ATM recycling ATMs in the United States and Hyosung is the only ATM manufacturer that also produces Teller Cash Recyclers (TCRs). Ten years ago, Hyosung was known for its convenience store ATMs, but now is the only company providing a complete solution set for branch transformation: ITM with core-connection, recycling, and TCRs.