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Branch Transformation

ITMs see major growth

Traditionally, ATMs have mainly served as cash dispensing tools. That is changing in recent years with the advent of solutions such as the interactive teller machine, which can deliver more banking tools to the customer.

ITMs see major growthImage via iStock.com


| by Bradley Cooper — Editor, ATM Marketplace

Traditionally, ATMs have mainly served as cash dispensing tools. That is changing in recent years with the advent of tools such as the interactive teller machine, which can deliver more banking tools to the customer.

Depending on the machine, an ITM might offer anything from money orders to video calls with bankers to account opening tools and more.

As a result, banks are increasingly adopting ITMs, according to research from Adrenaline.

Juliet D'Ambrosio, managing director for strategy at Adrenaline said in an email that 25% of all financial institutions currently use ITMs, and 60% plan to deploy them within the next three years.

"Further, those banks and credit unions that DO currently have ITMs deployed plan to significantly increase the number of ITMs across their network," D'Ambrosio said. "Today, a little over 33% of FIs have between 100 and 500 ITMs deployed and in three years, 62% will. The vast majority — 81% — of FIs that currently deploy ITMs plan for a full network implementation."

D'Ambrosio gives the reason for this increase in usage to two factors, COVID-19 lobby closures pushing customers to remote options and the fact that ITMs allow FIs to expand their reach across their network while delivering a better customer experience.

Simon Powley, senior director of advisory services in North America for Diebold Nixdorf, argues that this trend of ITMs is being driven by a desire to integrate physical and digital channels while also reaching a changing customer base.

"ITMs continue to be selected as customer preferences turn to digital and banks continue to look for efficiencies," Powley said in an email. "This reduces the cost per transactions for banks and improves the customer experience through better reliability and accessibility."

The evidence from Adrenaline's study seems to match this perspective. For example, 68% use it for deposits or withdrawals, 40% use it for credit card payments, 26% use it to open a new credit account and 21% use it to pay bills.

"Customers are attracted to ITMs because they offer the best of both worlds: a channel that fuses the speed and access of technology while delivering on the enduring desire for human connection through the live teller access," D'Ambrosio said.

At the same time, ITMs still have some barriers to overcome to achieve widespread adoption. For example, 40% of decision makers listed concerns over cost and ROI as big reasons to avoid getting ITMs. In addition, consumer adoption is also an issue due to the slower pace of adoption.

"Consumer usage is on the rise, too, but at a somewhat slower pace. Our research found that 32% of Gen X consumers prefer using an ITM to going into a branch, and 40% of Gen Z report regularly using an ITM," D'Ambrosio said.

D'Ambrosio points out that 57% of decision makers said their concerns around ROI were resolved after deploying the ITMs. She also recommends that FIs can boost consumer adoption through good training and marketing.

"The most successful ITM deployments and rollouts have supported their implementation with robust employee training and customer launch, marketing and education programs, which are sustained for at least 9-12 months," D'Ambrosio said. "Like with self-service check out at retail, customer adoption is initially slow — then, once educated on the benefits, consumers reach a tipping point and engage regularly."

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Diebold Nixdorf


As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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Bradley Cooper

Bradley Cooper is the editor of ATM Marketplace and was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

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