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ATMs fill a critical role as banks change and grow

ATMs fill a critical role as banks change and grow

While ATMs have existed for some time now, the role they play may grow more important in the coming years as consumer banking grows and branches undergo transformations to match the changing wants and needs of potential customers. With more branches experimenting with new and different concepts and realizing success with many of them, the bill of services offered by tellers inside banks are changing. With the right strategy and ATMs featuring advanced deposit technology, banks can encourage customers to use a combination of automated and walk-up service to extend more banking options and reduce labor and costs.

A growing, competitive market

ATMs are a common sight in every bank branch, so it can be hard to remember there's still room for growth and innovation in the industry. Information compiled by Grand View Research shows the use of these machines is growing and the stage is set for banks to enter a period of increased competition, wherein technological innovation and convenience will be some of the driving factors. Grand View Research also predicted installations will continue to grow in the coming years, with projections showing steady increases through 2022. This presumed growth is in line with many industry projections and the opinions of some experts who believe ATMs will take on a larger role in the future.

When it comes to increased competition between banks in terms of ATMs, it's clear that fulfilling customer wants and needs will help banks retain patrons and keep them coming back. Banks have to consider how they'll position and market ATMs inside of branches and what tasks these machines will take over for tellers, both in the coming few years and in future decades. Additionally, the presence of ATMs in areas the bank serves but aren't near branches can offer significant benefits in terms of customer engagement, encouraging loyalty and repeat business.

Modern ATMs offer more than just the withdrawal of cash for customers. A variety of banking activities can be conducted quickly and securely without waiting in line for a teller or even visiting a branch. Reliable, full-function ATMs place a premium on convenience and speed of transaction, giving customers more options and catering to their needs. With expansion in the ATM market and increased competition between financial institutions, banks should take steps now to ensure they offer the best possible automated service for years to come.

February 22, 2016