To most of us the ATM might seem to be a simple thing. You insert your card, enter a PIN – hopefully correctly – and you check your balance or receive cash. Simple, right? But what more can be done with it? As it turns out, quite a lot actually – and consumers want even more still. Patrick Brusnahan reports
Five decades after the birth of the ATM, there are three million ATMs deployed worldwide, a decent amount by any standard.
However, as rumours of cashless societies pop up and technology firms keep finding ways to move away from the physical realm, what can ATMs do to remain relevant?
YouGov and ACI Worldwide have collaborated on some research on this topic. According to their online poll of 8,000 consumers, easier, intuitive and more secure ways of accessing their bank accounts are a priority.
Furthermore, 29% of UK consumers, 31% in France, 38% in Spain and 43% in Italy wanted ATMs to provide better and more secure ways of authentication.
Other key attractions were better and more detailed account information, alerts for upcoming payments or overdraft fees, the ability to dispense new credit or debit cards, or to access electronically signed official documents.
Lu Zurawski, consumer payments lead at ACI Worldwide, says: “Consumers today have become used to tapping their mobile phone or swiping iPads to access their bank accounts, or simply waving a contactless card over a card reader to make a payment.
“Many of them want to use ATMs in a similar fashion. Using a phone to access an ATM is already a reality, hinting at a future where ATMs may be cardless. Many banks are also experimenting with new technologies that use alternatives to tradition PIN-based authentication.”
Regional variance
Despite a rise in mobile payments and the contactless boom in the UK, 42% of UK consumers still use ATMs.
In terms of what UK consumers wanted to see, the research showed:
- 29% of UK respondents would like to see ATMs offer better and more secure means of authentication;
- 26% wanted ATMs to be able to dispense a new credit or debit card, and
- 21% of UK respondents would like to receive better and more detailed information about their account, such as mini-statements, alerts for upcoming payments, or overdraft fees.
Zurawski notes: “I do not see the ATMs heading for retirement any time soon. As well as being ubiquitous and simple to use, some people prefer hard cash as a deliberate way of controlling their spending.
“It should not be a surprise that ATMs remain so popular – they are an incredibly successful piece of social technology. The trend towards regional branch closures may put an even greater emphasis on the role of the ATM, including services beyond simple cash withdrawal.”
Overall ATM usage tends to vary depending on the country in question. Germany ranks first, with 48% of respondents claiming that they use ATMs just as frequently as they always have – this is despite the widening number of new digital forms of payments. Spain follows with 47%, France and Italy both with 40%, the US with 34% and Hungary with 29%.
However, 34% of consumers in Hungary stated that they use ATMs a lot less frequently now than they used to, while 23% of US respondents felt the same way.
“Although consumers today are using more cards and apps, enduring customer behaviours and the ubiquity of cash will secure the role of the ATM as a cash machine for decades to come,” Zurawski believes.
“The role of ATMs will continue to expand beyond cash too, so I believe the ATM has got a long and innovative life ahead.”
ATMs: A disappearing act?
Lu Zurawski’s opinion is not an uncommon one. Many are optimistic about the future of the ATM, mainly due to it being directly connected to the future of cash. As long as people want cash, they will want – and probably need – an ATM.
Laurent Dhaeyer, MD of online payments sepcialist Secure Trading, says: “Predicting the death of cash would be very bold. It has a fundamental role in modern society while should not be underestimated. If only in terms of its ubiquity, cash will be here for a long time yet.
“While it may be true that 94% of UK adults use cash machines, this does not tell the whole story. Financial institutions need to pay close attention to how consumers are using cash, if they are to evolve with the market, rather than be left behind by it.
“To my mind, it seems that the key to the survival of cash is its ability to be a convenient payment method for consumers.”
Bill Nuti, chair and CEO of NCR, says: “What started as a simple cash transaction device is now an indispensible platform that helps banks transform the branch and physical channel experience.
“Today, the ATM has become a bridge – a means to blend digital and physical channels and create connected experiences for consumers, and an invaluable tool advancing financial inclusion and opportunity around the world.”
