Taiwan’s CTBC Bank was a deserved winner of best ATM innovation at the ninth annual Asia Trailblazer Awards in March in Singapore. As Douglas Blakey reports, CTBC’s investment in its network has transformed the humble ATM from a basic financial service to a profit centre
CTBC Bank has been on a mission for a number of years to optimise customer service via the ATM channel.
Go deeper with GlobalData
CTBC’s self-service innovations are not only helping to reshape the image of the ATM: they are now paying off in terms of improved customer satisfaction scores and helping to boost the bank’s bottom line.
In CTBC’s home market of Taiwan, cash remains a major payment tool, notwithstanding the accelerating trend towards cash displacement.
To meet the challenges of changes in consumers’ behaviour and rising service expectations, combined with the growing influence of novel fintech innovations, CTBC came up with what it terms the community ATM centre. To expand its self-service footprint, CTBC installed community ATM centres with its strategic alliance partner, 7-Eleven, the biggest convenience store chain in Taiwan.
Self-service innovations in 2017 include multi-currency ATMs, video teller machines VTMs), and electronic ticket purchase. The ATM service enhancements complemented other firsts in the local market, including fingerprint biometric cash withdrawal and coin deposit machines.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCTBC has blazed a trail in promoting cardless withdrawal in Taiwan. It was the first – and remains the only – bank in Taiwan to offer ATM finger-vein withdrawals using Hitachi’s VeinID technology. It has also pioneered cardless ATM withdrawals via smartphone. Its latest cardless drive is the launch of ATM deposits and money transfer via fingerprint at all CTBC branches and at selected ATMs within 7-Eleven stores.
Other ATM innovations include the facility to open accounts via VTMs within CTBC’s first digital branch at DongHu.
FX innovation
As Taiwan is a foreign exchange-controlled country, there is a challenge for consumers to change money.
In the past, tourists and locals have had to visit banks or authorised agents – hotels or department stores, for example – to exchange foreign currency. However, such institutions only provide the service during office hours.
CTBC’s solution has been to launch a foreign currency exchange machine within a 7-Eleven store in Ximending.
Users need only scan their ID card or passport. The foreign currency ATM provides two-way currency exchange as well as offering cash withdrawals in US dollars, Japanese yen and Chinese renminbi, with trilingual language translation in Chinese, English and Japanese.
Integrated marketing
CTBC has also successfully linked ATM transactions to the bank’s loyalty programme to reward customers as an integral part of the bank’s marketing strategy.
CTBC has run a number of marketing campaigns, including campaigns on Facebook, to promote the message: “The ATM is not just a machine; it’s a great partner to satisfy your daily financial needs.”
The bank offers a number of loyalty rewards for what it terms “normal” users, and additional rewards for heavy ATM users. Redemption rewards on offer include movie tickets and partner retailer discounts.
In terms of ATM market share, CTBC leads with a share of around 35% in 2017 – up from 31% in 2013, putting it ahead of Taishin and the Post Office with 13% and 9% respectively.
In terms of customer feedback, the bank’s self-service investments are paying off, with an ATM customer satisfaction rate of 93% in 2017.
CTBC is also enjoying a return on its ATM investment via increased fees revenue from growing third-party interchange fee income and new revenue streams from electronic ticket sales.
