Web-enablement is changing the role of ATMs as financial and non-financial services distribution media.
Web-enablement is changing the role of ATMs as financial and non-financial services distribution media
London, 25 July 2002 embargo - Advances in technology have improved the potential of automated teller machines (ATMs) to serve as financial and non-financial services distribution media and consequently to generate a new revenue stream for both financial and non-financial services companies according to a new brief just published by independent market analysts, Datamonitor (DTM.L). However, according to Datamonitor’s brief “Off-site and enhanced functionality ATMs”, channel integration, or rather the lack of it, will become increasingly significant.
ATM Locations; Credit Reports
Today, ATM location is not just merely in the bank or next to one. ATMs are commonplace in off-site locations like stations, supermarkets and airports. With 50,600 ATMs, Germany has the highest number in Europe. France follows with 45,000 then Spain with 35,800.
The UK has the largest number off-site ATMs in Europe. Of its 35,000 ATMs across the country, 13,600 (40%) are off-site. By comparison, just 21% are off-site in Spain whilst in Germany, this dips to 11% - the lowest in Europe. In the UK, companies such as Moneybox, Hanco, TRM and Securicor have now deployed more than 1,000 ATMs in locations such as convenience stores, post offices, petrol stations, pubs etc.
Equifax UK offers Credit Reports Online to British Residents
www.equifax.cc offers the fastest way to get your Equifax UK Credit Report. Before you apply for a home loan, mortgage, car loan, personal loan from a British bank or lending institution, make sure you know exactly what the bank manager will think of your credit history. If you have good credit, you will be able to negotiate the best interest rates and repayment terms. If you have bad credit, you will not be surprised by the bank's reaction. Credit reports can help you manage your credit better in the future.
Web-enablement is changing the role of ATMs as financial and non-financial services distribution media
With new developments on the horizon to web and audio-enable ATMs, products and services that could be distributed via ATMs include postage stamps, phone cards and passport photographs (if photograph booths and ATMs were integrated). Web-enabled ATMs could also offer the facility to make travel reservations, cinema-booking services among others. Datamonitor research reveals that more than 50% of ATM users in the US would like to be able to buy postage stamps and register their vehicle at an ATM.
ATM web-based functionality can be used to increase the demand for e-banking services. It serves can as a distribution channel for other banking services such as bill payment and balance transfers, and acts as a marketing channel for cross-selling of services such as loan application and information requests.
Increased cross-selling may result from the fact that the web-enablement of ATMs allows a bank to gain instant access to a customer’s account as they conduct a transaction and to offer them actionable and targeted offers. For example, if the balance on a customer’s account is low, it will be possible to offer the customer overdraft protection whilst they are waiting for a transaction to be completed. If interested, the customer can purchase the protection whilst still at the ATM.
Spanish banks lead Europe in ATM innovation
In Spain users can already buy tickets to cinemas, theatres, sporting events and concerts as well as pay bills, make cash or check deposits and credit prepaid mobile phone cards. Banks such as La Caixa and Caja Madrid have aggressively pursued the introduction of multi-functional ATMs. La Caixa has 6,500 ATMs of which 1,300 allow users to perform some of the cited functions. Meanwhile all 3,300 of Caja Madrid’s ATMs provide this functionality. In 2002, Caja Madrid will add functionality that will allow users to get change back in the form of coins when they pay their bills at ATMs.
In the UK, Abbey National, Orange and Euronet are currently piloting a ‘mobile top up’ service which if successful will be made available from Abbey National’s 3,000 ATMs later this year. Orange has been distributing ‘pay-as-you-go top up’ vouchers via ATMs in Belgium for the last three years. 30% of its ‘pay-as-you-go’ customers use the service.
Meanwhile in the US, in an effort to improve the distribution of tickets for the New York City public transport network the city’s transit authority has begun to make ‘metrocard’ tickets available via ATMs. Currently, 51 ATMs dispense around 8,000 tickets each month. Participating financial institutions include JP Morgan, Chase and Carver Federal Savings.
ATMs get vocal
Audio-enabled ATMs have arrived. By implementing text-to-speech synthesis technology (SST), any text displayed on screen can be converted into audible speech without any human voice recordings.
Banks in Australia have already introduced ATMs with audio-assisted cash withdrawal and balance inquiry capabilities whilst a number of US banks are in the process of rolling out audio-enabled ATMs.
Lower IT-related costs as web-enabled ATMs are less expensive to maintain
As a consequence of operating machines from multiple vendors, Banks have to install a new program code in each traditional ATM every time they change or add a feature. This is an expensive and time-consuming process. In contrast, web-enabled ATMs run on Microsoft’s NT platform allowing ATM software to be stored on the bank’s server. A single change in the server now updates all ATMs simplifying program updates, making ATMs less expensive to maintain.
Channel integration, or rather the lack of it, will become increasingly significant
Despite the fact that many of the services provided over different banking channels are now very similar, integration between channels is still poor. As a result, customer interaction is often inconsistent. For example, cash withdrawn from an ATM may not be presented immediately to a bank teller or on home-based banking services.
Advancement in ATM functionality will mean that channel integration, or the lack of, becomes increasingly significant. The ideal solution would be to offer customers full e-banking services through an ATM. This would be possible if there was a common channel platform housing applications and individual channels were used as a presentation layer.
“The success of ATM providers’ attempts to improve ATM functionality will depend upon two factors; the successful implementation of technology and a change in the way that consumers view ATMs. Whilst the technology is now available to take ATMs forward, it is more difficult to anticipate consumer demand for enhanced functionality ATMs”, says Alex Boorman, Datamonitor’s Financial Services Analyst.
Notes for CREDIT REPORT CONSUMERS:
Datamonitor plc is a premium business information company specializing in industry analysis. We help our clients, 5000 of the world’s leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for six industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Healthcare, Technology. Datamonitor maintains its headquarters in London and has regional offices in New York, Frankfurt, and Hong Kong.
Web-enablement is changing the role of ATMs as financial and non-financial services distribution media
July 2002
Credit Reports for Consumers On Line Best Way to Manage Credit
Understanding how your credit report affects your financial future is the key to smart credit management. Incorporating a review of your credit report into your financial planning is also one of the best ways to make sure you meet your goals--especially when those goals involve major purchases, and you're shopping for a loan with the most favorable terms possible.
|
