Technology is ever-evolving, there has not been a single technology that has stayed. Same is the case with Automatic Teller Machines (ATM).
Since the advent of more than 50 years, automated teller machines (ATMs) have revolutionized the banking industry. Customers can now do some of the most common financial transactions, both independently and in their spare time, without having to rely on real-time tellers to assist them.
Now, with the launch of the interactive teller machine, the banking industry seems to be experiencing another turmoil. ITM combines the traditional features of ATM while providing greater self-service trading capabilities and the ability to talk to real-time cashiers to complete transactions.
With more than 500 organizations and 12,000 devices, ITM is increasingly popular but still needs a strategic plan. Therefore, you may want to know if ATM or ITM is more suitable for your bank or credit union.
ITM vs ATM
Today, automated teller machines (ATMs) are as common as smartphones. However, this is not always the case. Banking has never been the case since the launch of ATM. In less than two years, ATMs have made progress and can provide customers with more features, such as the ability to check account balances.
Today’s ATMs are advanced, including a combination of touch screens or buttons that enable customers to deposit or withdraw funds. In recent years, some branches have introduced more advanced terminals that only use touch screen controls. Further, some ATMs can interact with bank employees on request to provide additional services. These ATMs are called ITMs.
Interactive teller machines (ITM) have begun to be widely used, especially in areas with a small population.
Like many ATM machines, customers can deposit cash (for bills only) or checks and then withdraw cash. ITM is especially valuable when a debit card is lost or stolen. Without a debit or ATM card, individuals will not be able to withdraw cash from a standard ATM.
As the name implies, the Interactive Teller Machine (ITM) builds on the functionality of the ATM while adding other trading features. More specifically, ITM allows customers to talk to employees at remote locations. This face-to-face, the real-time conversation is done through video chats displayed on the ITM screen.
The basic components of ATM, such as receipt printers and card readers, can be transferred to ITM. However, ITM usually includes other features such as:
- Camera and phone for dialogue with tellers
- A coin dispenser for dispensing coins of different denominations
- ID scanner for verifying customer identity
- Signature board
ITM first appeared in the early 2010s and deployed more than 400 NCR machines by 2014. As of 2018, ITM accounted for less than 10% of installed ATMs and ITMs. However, more and more financial institutions are considering adding or replacing ITM as their ATM fleet. ITM allows customers to display or scan their driver’s license or other forms of identity to prove their identity so that they can withdraw cash until they receive a replacement card.
More benefits of ITM
On the screen, ITM provides more than just a friendly smile from bank staff. Most ATMs can only pay bills in increments of $20, but with ITM, customers can request and receive money in increments of various bills. They can even receive change, such as when cashing a check, today’s ATM can’t handle it.
By leveraging bank staff working elsewhere or in contact centers, customers can also benefit from faster service and a long time. Extending working hours can increase banking growth, benefiting banks and making customers more flexible in scheduling financial transactions.
In the past few years, we have seen increasing market demand for the latest technology, which is beneficial to banks and other financial institutions and their customers.
Financial institutions have a poor reputation: they are considered old-fashioned and technologically backward. New inventions such as mobile banking, cryptocurrency, and auto-investment have disrupted the traditional financial sector. If financial institutions do not adapt to changing consumer needs, they may be eliminated.
Perhaps the biggest change in consumer technology is what we call the “Amazon effect.” Nowadays, consumers want them to order or call, and then they can reach the car in a matter of minutes, just a few taps on the smartphone. The success of Amazon itself is largely due to its constant innovation and beyond the expectations of consumers, whether it is delivered by drones on the same day or the world’s first self-service grocery store.