ATMs can perform a variety of tasks that suit consumers. While their primary purpose is to give cash to people with checking or savings accounts, banks gave them more specific functions over the years to give customers more freedom in how they bank. It helps reduce overhead while allowing financial institutions room to transform how they interact with customers. More recent technologies have come into play that will help depositors feel more secure in how they receive their money. One option is the incorporation of the EMV smart chip standard that will likely impact everyone as it becomes a standard in various businesses around the country. Another is bringing mobile devices into the transaction by making withdrawals cardless.
Mobile devices like smartphones are now a predominant part of U.S. society. With the functionality of a computer and cell phone put together, there's a lot of things they can do. One idea that affects ATMs is cardless withdrawals. With this process, all a customer would need is an app installed on his or her phone. The person can input the amount of money he or she wants dispensed, then waves the phone in front of the ATM, according to the blog MainStreet.com. Using a technology called near-field communication, the two machines interact and the consumer receives money.
The benefits of this technology are unique. For one, the withdrawal process at the ATM itself is faster: Instead of taking the time to get out the debit card, input the PIN and cash amounts - along with other steps such as asking for a receipt - a customer just has to wave the smartphone in front of the dispenser. That greatly shortens the time spent on the transaction and makes the customer less vulnerable to weather or criminal activity. Secondly, it's more secure. Machines can be targets to skimming scams that copy the data on cards' magnetic stripes. While EMV will eventually address this problem, cardless withdrawals are a great measure more secure in certain ways.
Already, some banks seek to incorporate the technology. ATM Marketplace reported on WSFS Bank, based in the Delaware Valley, introducing a new Mobile Cash program. With an update to the bank's mobile app, customers can perform cashless withdrawals in the manner previously described at its ATMs. An added benefit is that no personal information is communicated between the branches. This makes the new technology a possibly secure option for the future of these machines.
January 14, 2016