ATMs vs. Personal Teller Machines
Personal Teller Machines offer almost every transaction option available at the teller line. ATMs offer the ability to make a withdrawal or deposit.
Personal Teller Machines provide flexibility in cash withdrawal denominations – choose from 5 different denominations. ATMs allow for single denomination only.
Personal Teller Machines allow a customer to request and print an official check, unheard of using an ATM.
Personal Teller Machines are easy to place, occupying a single square foot of retail space. ATMs are large and typically require some construction to implement.
Self-service kiosks may not replace ATMs, but they do represent a new way to touch the customer, improve customer satisfaction, increase up-sell and cross-sell and gain big operational improvements in the branch.
ATM’s Have Pretty Much Been the Same Since 1967
Ground-breaking in its introduction of “convenience” to the banking customer mindset, the first ATM was installed in 1967 by Barclay’s Bank in London. Since then, the positioning and technology applications have remained largely unchanged. As users we have become “trained” on where to find and how to use an ATM – mostly outside the bank branch and to make a withdrawal or deposit. That has been the extent of our self-service experience where banking is concerned for more than 40 years.
Enter “The iPhone Effect”
Since smart phones have pervaded our lives, consumers have become increasingly demanding of technology that is cool, simple and connected. They want to use this technology to do more and more of their daily tasks, and banking is no exception. So the major banks have focused tremendous resources on developing online banking to meet the needs of these customers while their retail locations – the brick-and-mortar bank branch – has remained largely unchanged.
The swift move of consumers to online banking has reduced, but not eliminated, foot traffic in retail branch locations. Banks understand that the physical branch remains critical in establishing relationships with new account holders, as well as addressing existing account holders’ financial decisions. Customers still want that human interaction. However, the Great Recession has forced the banks to find ways to reduce expenses AND offer a better retail experience to their customers.
Enter the “Branch of the Future” concept: a way to implement state-of-the-art technology and branch design to maximize both the staff and a smaller space. Self-service kiosks are an instrumental part of the concept, allowing customers to manage their own transactions with the comfort of an easily accessible staff member nearby to step in and help if needed.
Not Your Father’s ATM
Personal Teller Machines act as an extension of the teller line because they are integrated with a bank’s core system, avoiding the ATM rails and associated fees. While ATMs allow for a few standard, specific transactions, Personal Teller Machines empower customers to complete 80 – 90% of the transactions traditionally handled by a teller in a fraction of the time.