New research indicates the importance of enhanced ATM interactions and personalisation
Banks are increasingly using advanced ATM software platforms to modernise customer identification and authentication, improve customer personalisation and maximise the performance of their ATMs and self-service channels. These are some of the key findings from ATM Software 2018, an in-depth survey of the world’s leading banks, examining their perspectives on the current generation of ATM software, and the functionality they expect in the future.
Contactless leads the new wave of self-service interactions
The new research, published by specialist research and consulting firm RBR, noted that while most ATM transactions are still carried out using the traditional card + PIN combination, advanced software platforms now support a wider range of technologies and form factors. In a competitive market, NFC and contactless are emerging as the front runners, with QR codes and pre-staged transactions (initiated via a mobile device and completed at the ATM) also becoming widespread. Mobile transactions via Bluetooth, and one-time codes, have yet to gain the same kind of traction, but are also likely to grow.
Personalisation is about improving the customer experience and boosting revenue
Personalising customer interactions at the ATM has long been a key goal of banks, but progress in many markets has been limited, often because of technological limitations and competing priorities. Banks which have successfully implemented advanced ATM software platforms are now pressing ahead with preferred transaction types, banknote denominations, e-receipts and language preferences. As well as providing a seamless and customised user experience, the integration of new CRM tools has the ability to generate additional revenue for deployers, via targeted sales of products such as loans.
ATM deployers aim to exploit the power of monitoring and management solutions
RBR’s study also looks at the development of ATM monitoring and management software, which is one of the key growth areas for software providers. With many European and North American banks looking to maximise the performance of their ATM estates rather than expanding them, efficient monitoring solutions are critical. The market is growing – two thirds of banks interviewed by RBR now use a commercial solution – and dynamic, with many banks having recently switched provider, or planning to do so soon.
Banks look towards new software deployment models
Despite the great advances made in ATM software in recent years, the real revolution could be yet to come. Several major European banks are now seriously studying ‘thin client’ ATM architecture, which would see the traditional ATM replaced by a streamlined model, and the processing power that currently resides on the terminal moved to a central location.
Smaller banks, which have more limited IT resources, may look to cloud solutions, which would see third parties hosting their data storage and processing remotely. Software as a Service (SaaS) is likely to grow in popularity among banks with limited in-house IT resources, and which already outsource part of their ATM infrastructure.
Robert Chaundy, who led the ATM Software 2018 study, commented: “Banks worldwide are now aware of the benefits of multivendor ATM software, purchased as a product in its own right, and are looking seriously at the practical benefits that these advanced software platforms support. Advanced customer interaction, channel personalisation and network monitoring have the potential to revolutionise the ATM experience for banks and customers”.