As cash usage continues to diminish globally, banks are exploring all avenues to reduce the cost and maximize the benefits of running an ATM channel. Software plays an increasingly important role in this area in two key ways: firstly, by reducing the cost of maintaining a large estate of ATMs through network monitoring and increasingly by unlocking the ATM channel as a marketing tool to bring in revenue. Many banks are also reassessing their relationship with both ATM hardware and software vendors to reduce costs.
ATM Network Monitoring Helps to Manage Running Costs
Almost all major ATM deployers now make use of dedicated monitoring software to get an accurate, real-time view of all the devices in their network and optimize the running of their ATM estates. ATM downtime, whereby one or more ATMs in the network are not operational due to cash deficits or device outages, is costly to deployers and to be avoided. Tracking device status and cash usage ensures banks can provide consistent service availability and maintain appropriate cash levels across the network.
Monitoring software solutions give deployers the ability to act remotely on all the ATMs within a network, perform diagnostics on both hardware and software components, and activate new features without requiring physical visits to each location. Where technicians are required, many institutions have set up automatic dispatch protocols, notifying them of devices experiencing downtime or component failures, without the need for in-person inspections from bank staff.
As well as monitoring the current status of a network, predictive analytics capabilities are increasingly incorporated into monitoring systems. Sophisticated cash forecasting solutions help maintain the delicate balance between ensuring adequate cash access for customers and minimizing costs on excess inventory.
Software Can Unlock the ATM Channel as a Marketing Tool
An increasing number of banks are also leveraging their ATMs for marketing purposes to drive revenue. Deployers generally turn to dedicated customer relationship management (CRM) software to unlock this capability, with commonly used solutions available both from major ATM vendors as well as specialized software providers.
The extent and nature of marketing activity at the ATM ranges significantly, from more generic internal or third-party advertising on idle screens to more personalized offers. Some deployers detect whether ATM users are the bank’s own customers, allowing them to tailor their marketing accordingly. They might make account switch offers to noncustomers or upsell credit products to ATM users who already bank with them. Banks in the U.S. and Canada are the most active in this space, with the largest banks most inclined toward investing in their ATM channel as a marketing tool.
At this stage, deployers are open about the fact that it can be difficult to assess the impact of ATMs as a marketing tool in isolation, as users are generally directed to other channels, such as banking apps and bank branches, to fulfil offers initially made at the ATM. However, if the early adopters are able to demonstrate the value of the ATM channel as a marketing tool, other deployers are likely to follow.
Cost Is at the Center of Software Procurement Considerations
Software procurement is another area in which banks look to reduce the overall cost of the ATM channel. Here, the decision of whether to separate ATM hardware and application software procurement is a key differentiator between banks.
Although many banks still purchase bundled ATM hardware and software, the multivendor software approach, in which banks separate the procurement of application software from hardware, is also popular. This enables banks to more easily incorporate terminals from multiple manufacturers into their fleets under a single software solution. Crucially, this avoids them getting “locked in” to a single hardware vendor and puts them in a stronger position to negotiate better pricing on both ATM hardware and software.
The insights shared in this post come from our Global ATM Software study, which provides in-depth profiles of the software platforms and strategies of 36 major ATM deployers, covering how different software solutions are leveraged to improve the user experience and manage large ATM estates efficiently. Key considerations of each deployer in the procurement of ATM software are also covered in the report.
