Banks continue to seek new ways to extract value from, and provide value through, their investments in ATM technology. This article explores how the ATM’s history can guide its future, steering us toward the next wave of innovation and growth in the United States.
Twelve years after the advent of surcharging in the U.S., the promise of increased profitability has largely evaporated for financial institutions and for all but the largest, most efficient ISOs. While some high volume ATM locations are profitable, many are not. However, this does not suggest the death of the ATM channel. What it means is that we are returning to a holistic view of the bank-consumer relationship, where the ATM is just one element of the customer experience, and where channel profitability is judged not on a transaction basis, but on a long-term relationship basis. In other words, a return to the prevailing view of the ATM in the early 1990s and before. We believe the next big ATM opportunity in the U.S. is not in added services for existing users, but in new services for new users in new locations. In one such scenario, the next generation of ATM may not be an ATM as we know it, but a financial service station for a new group of consumers with limited or no banking relationships or experience.
Read the entire article at: http://www.edgardunn.com/uploads/100030_english/100307.pdf
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