Latest ATM Technology and its future

  Predictions of the imminent demise of cash have often been accompanied by pronouncements of a slow, but certain death for the ATM. After all, what possible need could there be for a technology platform whose single purpose in life is to dispense an archaic form of payment that no one uses anymore? And just 10 years ago, the ATM was indeed looked upon as little more than a convenient source of cash.

   The passage of Check21 in 2003 and its implementation in 2004, served as a catalyst for some rapid changes in technology, as well as in consumers’ perceptions of the ATM. Although envelope deposits at ATMs had been available for some time, the process was fraught with challenges, delays and fraud. As a result, few fin-ancial institutions implemented the solution widely and even fewer customers utilized it. Check21 not only cleared the way for electronic capture at bank branches and local businesses, but also at the ATM.

   A new generation of truly automated deposit-taking devices began appearing in financial institution ATM fleets in the 2005/2006 timeframe – and the race was on. Marketing wars erupted in larger metropolitan areas across the country and major banks deployed tens of thousands of advanced functionality machines, seemingly overnight. Consumers embraced the changes with open arms. It has been one of the more phenomenal technology success stories of recent years. And with that, ATMs were no longer just cash dispensers, but vehicles for depositing cash and checks.

  

 The impact on ATM operators could not be more clear. A recent Innovation Survey conducted by the ATM Industry Association (ATMIA) found that automated deposits were ranked as being the most important non-core ATM function. Respondents also expect that importance to continue over the next five years, with a growth rate exceeded only by that of mobile payments.

   Creeping doubts about the future of the ATM as a simple cash dispenser have now been supplanted by new strategies that place the ATM at the center of multi-channel delivery systems for financial services. Financial institutions and their customers see ATMs in a new light. Because even though consumer touch points have multiplied – smartphones, tablets, kiosks, notebooks, etc. – the ATM remains the only remote channel capable of receiving and dispensing cash, and, next to the branch, is the most secure vehicle for doing so.

    So, what about the future? Despite terrifically strong consumer interest in additional payment functionality at ATMs, little progress has been made on that front. The reasons are many. And due in large part to the complexities of U.S. payment systems. Financial institutions, the primary deployers of advanced function ATMs, have also been reluctant to implement a broader array of functionality, for fear of further slowing ATM queues due to the large number of deposit transactions.

   A tipping point is close at hand though. The perfect storm, if you will, is scheduled to come ashore over the next few years in the form of EMV and Windows 7 migrations. Painful as all of that will be for the entire industry, and every stakeholder in it, it will also provide great opportunities to break free of the perceived restrictions of ATM technology that have prevented necessary innovation to make integrated payments a reality.  

Source: http://www.transactionworld.net