2020 has revealed the ATM’s untapped value
Half a century after it was introduced, the ATM has become the cornerstone of banking. Even so, its power is often taken for granted. But as the world navigates business during a pandemic, the continued importance and relevance of the ATM – for both financial institutions and consumers – is on full display.
Overnight, the ATM became the only physical gateway to many financial institutions. It overcame temporary closures and shortened hours. It was a conduit for tellers to support consumers through video.
It was a substitute for services that were unavailable inside the branch. The profile of a channel that is often seen as little more than a cost centre has been elevated. The question is, how can we maintain this renewed cachet and maximise it for the future?
Service is the key to maximising it for the future
Reimagining the role of the self-service channel
When positioned as nothing more than a transactional cashpoint or a necessary cost of doing business, the ATM is severely underutilised. As validated in 2020, it’s one of the few banking technologies that can be quickly reimagined to adapt to new challenges.
No other technology can bridge the physical and digital in such an integrated, consumer-centric way. As a physical destination, it creates visibility and impressions for the financial institution and serves as a preferred channel for consumer engagement. When leveraged for high-touch offerings like assisted self-service, it can strengthen the consumer’s relationship with the financial institution.
What makes the self-service channel truly transformational is its ability to offer the vast majority of services typically available inside the branch. So as financial institutions rely less on brick-and-mortar, the ATM can enable them to not only maintain a physical presence, but also a comprehensive service offering while advancing the journey from consumer acquisition to engagement to increased share of wallet.
Shifting the self-service management paradigm
The primary barrier keeping financial institutions from strategically maximising the ATM is the oftentimes overwhelming burden of managing the channel. But with the right operating model, the self-service channel can become a profitable asset and one of the most strategic tools in the banking environment.
Why is fleet management so overwhelming? Because many financial institutions are still taking a do-it-yourself approach. Ongoing service, availability, functionality, cash management, compliance, security – sustaining these functions requires significant resources. What else could you do with those resources if you optimised fleet management? How can you effectively maintain the self-service channel while continuing its modernisation to improve functionality and the consumer experience?
A shift in the self-service management paradigm could be the answer. A managed services approach, in which the financial institution outsources part or all of self-service ownership and management, can deliver:
- Staffing efficiencies through releasing internal capacity and refocusing internal resources from day-to-day channel management to core capabilities
- More timely introduction of new functionalities through continuously updated and refreshed technology
- Optimised consumer experience and banking transformation through more consistent focus on and expansion of the strategic role of the channel
- Enhanced compliance and security through simplified management and more frequent updates to combat emerging threats
- Cost reduction through more effective use of expense and capital budgets or simply freeing up operational time once spent on channel management
Maximising the value of the ATM
The ATM has proven its value over time, and the dynamics of 2020 have served as an important reminder of everything it can do. Evolving the management of the self-service channel can flip its value from a cost centre to a value generator. Partners like Diebold Nixdorf and our comprehensive Self-Service Fleet Management Services can help you establish the right model for maximising the self-service channel while more strategically and efficiently delivering financial services and fostering financial well-being.
For more information, visit DieboldNixdorf.com/FleetManagement
