The ATM Turns 50: Why Evolution Is Key For Its Survival
Monday, July 10, 2017
Posted by Katrin Boettger to Payments and Industry Trends, High Value Real Time Payments
Share this:
The ATM turns 50 this year and half a century on ATMs remain popular with consumers worldwide. Banks and building societies more than ever see ATMs as a key channel of communication and interaction with their customers and many are now offering ATM services that go beyond simple cash withdrawal. We spoke with Paul Horlock, Director for Payments at Nationwide, one of the biggest high street financial providers in the UK. Nationwide has been working with ACI Worldwide for over 30 years and currently uses ACI’s BASE24 eps solution to power an estate of around 700 ATMs across the UK.
Paul, it is no secret that cash is on the decline in the UK and with the ATM known to many consumers simply as ‘cash point’ the question is: Do we still need ATMs and what for?
It is certainly true that in the UK the use of cash is in decline, in fact over 50% of transactions in Britain are now cashless while digital and contactless payments are becoming more popular. Today most consumers have a ‘digital interface’ in their pockets to make payments or access other banking services. For ATMs that means - evolve or die! Let’s remember what ‘ATM’ actually stands for - Automated Teller Machine - and it is exactly in this role that the ATM is going to be relevant for the next 50 years, offering a variety of services that consumers need and that can complement other existing channels.
What kind of services does Nationwide offer its customers via its ATMs and what role do ATMs play in the overall strategy of the business?
In the last few years we have modernised our ATMs, a task that is ongoing, and today they are offering many services that go beyond the usual functions of dispensing cash and balance information. Via our color touchscreen ATMs Nationwide members are for example able to deposit banknotes, which are immediately credited to the account and available for withdrawal. Customers can access mini-statements and receive service alerts or information about special offers. We have an in-branch only ATM estate at Nationwide and every time a customer interacts with one of our ATMs we enable them to have a conversation with their branch and us as a building society. Our aim is for customers to have a consistency of services and experience whether they are using an ATM, speak to one of our colleagues in branch or access services via their mobile or internet.
ACI published a global survey of 8,000 customers to celebrate the 50th anniversary of the ATM which revealed that better and more secure ways of authentication are on top of consumers’ wish list when it comes to new ATM services. Are you looking at new ways of customer authentication for ATMs?
Preventing fraud and making sure that our customers feel secure when using our ATMs is a priority for us. Like many others in the industry we are looking to develop new and secure methods of authentication. I think what we will eventually see are new authentication methods which involve a combination of identification via a mobile phone and biometric factors. We are working on this and looking at how to integrate this into our existing ATM services.
Related Blog Posts
Tres factores críticos para el éxito de las infraestructuras centrales en un mundo en tiempo real
Las instituciones financieras se están esforzando ahora más que nunca por modernizar sus sistemas e infraestructuras de pago a fin de satisfacer las nuevas demandas del mercado, y de los consumidores que desean experiencias inmediatas.
Three Critical Factors for Successful Central Infrastructures in a Real-Time World
Financial institutions are now working harder than ever to modernize their payment systems and infrastructures to meet new market demands—and consumers who want immediate experiences.
Real-Time Payments: A Mix of Simple, Smart and Secure Will Be Crucial for Further Adoption
In our global payments report, we predicted that 2020 would be Prime Time for Real-Time. And that was before the COVID-19 pandemic accelerated the adoption of real-time and digital payments around the world, which quickly became a necessity in keeping citizens safe and businesses afloat. During the recent ACI Edge Virtual event for banks and intermediaries, we discussed the challenges of real-time adoption with some of the industry’s leading experts. I caught up after the event with Lisa Neary, head of payments at Co-op Bank UK, Ian Gausden, head of real-time payments at Mastercard, Vincent Brennan, head of group payments and business continuity management at Bank of Ireland and Enrico Albertelli, head of payments and digital banking solutions at Nexi.
Comment DXC Technology et ACI Worldwide adressent-ils les enjeux règlementaires en Europe?
En Juillet dernier, Le conseil de gouvernance de l’ECB a pris une décision importante concernant le futur des paiements en Europe. En demandant aux PSP participants au système TARGET2 de se connecter à TIPS avant Novembre 2021. Dans le même temps les ACH domestiques devront effectuer le transfert de leurs comptes techniques vers TIPS.
EBAday 2020: Reaping the Full Potential of Real-Time Payments
Real-time payments are growing rapidly worldwide. In fact, according to ACI’s Prime Time for Real-Time report, more than half a trillion real-time payments transactions will be processed over the next five years. ACI’s Dean Wallace, director solution leadership, Real-Time and Digital, recently took part in an EBAday panel to discuss what businesses need from banks to reap the full potential of real-time payments, how fintechs can assist and how collaboration can be advanced on a global scale. I caught up with Dean to discuss the latest insights.
The Role of Regulation, Collaboration and Competition in Pushing Forward Payments Modernization
While geographic regions have taken their own approaches to payments modernization, they all face some common challenges – a principal one being adoption of real-time payments, which is central to successful payments modernization projects. I spoke to some of the top minds tackling real-time payments adoption in key markets, including the U.S., Canada and the U.K.
The Role of Southeast Asia’s Central Payments Infrastructure in the Emerging Pan-Regional Network
The benefits of a real-time, cross-border payments network in Southeast Asia are clear. As the region’s economies continue to grow, a cross-border payments network will facilitate faster cross-border commerce at a lower cost.
$name
Central Infrastructure for Real-Time Payments: Overcoming the Final Hurdle [Mastercard Q&A]
Traditionally, Sibos has been focused on high-value cross-border payments, but – as with so much of 2020 – times are changing. High- and low-value cross-border payments are converging, and the rich-data standards that are emerging for real-time payments will further accelerate this trend. The big challenge will be, how do we deliver on the promise of end-to-end, global real-time payments?
The Two Sides of Payments Modernization in Asia: Real-Time and Financial Inclusion
Home to nearly 60 percent of the world’s population, as well as some of the most dynamic and diverse markets, the Asia-Pacific (APAC) region plays a critical role in shaping the world economy. The diversity of the region is also evident in its payments landscape, with almost every country forging its own path towards payments modernization.