The new interactive teller machines: where convenience meets the human element

As long as there have been banks, customers have gone to them to get cash, make deposits and make other transactions. But today, customers’ growing appetite for convenience is driving change. While few would want to go without the freedom to visit their bank in person when they choose to, they’re doing so less frequently—typically opting for self-service kiosks such as ATMs and Interactive Teller Machine (ITMs), mobile and online transactions.

In fact, some FIs have seen an 88% increase in “branch” opening hours thanks to ATMs and ITMs, with some seeing 30% of deposits being made outside of regular operating hours.

Case in point: 9% of respondents said visiting a branch was their top banking option.

For financial institutions (FIs), this new reality calls for a new kind of balancing act: using technology where it makes sense so you can also afford to provide in-person services when and where customers want them—AND to do all this in such a way that keeps their balance sheet in line and their investors happy.

For many FIs, ITMs, also known as video remote tellers, are an increasingly important tool ATM-like experience but with a live person on a video screen ITMs are making it possible for a customer to talk one-on-one with a real banker from virtually anywhere, almost any time. Some FIs are even offering ITM sessions with a mortgage banker or retirement counselor. (Right. Now. No waiting.)

How do ITMs work?

The ITM is the heart of today’s successful branch automation process. Its technology is opening distribution channels and providing a “branch in a box” experience to customers. These advanced terminals can provide the functionality of a branch but can operate from a variety of ultra-convenient locations, including hotel lobbies, shopping malls, hospitals and college campuses.

Three-quarters of FIs already offering video banking have reported improved outcomes, with 97% saying that Net Promoter scores (NPS) for video banking are at least as good, if not better, than other channels. 77% say sale close rates are better or at least equal to other channels. And 90% percent of banking users who have used in-branch video banking say they would be willing to use it again.

The reason: ITMs let consumers perform simple cash transactions or engage in deeper, more personalized banking activities with remote tellers: it gives people choice, access and convenience.

• Get cash
• Deposit checks
• Cash checks to the penny
• Cardless transactions
• Bill and loan payments
• New account opening and funding
• Transfer funds to any account
• Order replacement cards
• Process savings bonds and redemptions
• Process customer CD renewals and inquiries
• Issue bank checks or money orders
• Investment account transactions
• Access to all accounts (consumer and business)
• Credit card payments

Using an ITM, the customer and teller can communicate in real time, with the teller guiding the customer through the transaction or, in some cases, operating the ATM remotely. It’s a convenient way for customers to bank at just about any level. They can connect with remote tellers up to 24 hours a day, seven days a week from any ITM location (if the call center is staffed 24/7).

ITMs, ATMs and everything else: the right tool for the right job

ATMs are proven, dependable and a cost-effective option for expanding service channels outside of the branch—and inside, too, as next-generation ATM software transforms the ATM into a key asset for branch transformation, enabling banks to migrate more transactions and a richer experience at the ATM. ATMs dispense cash and can offer other basic services:

• Check depositing
• Account information access
• Fund transfers
• Marketing of relevant products

Offering your customers compelling choices under an omnichannel umbrella can lead to customer satisfaction at every turn.

And customers value these services. But ATMs can’t be everything to everyone. Offering your customers compelling choices under an omnichannel umbrella can lead to customer satisfaction at every turn.

For example, when it comes to personal service, ATMs can’t compete with in-branch tellers and bankers. There are times customers want to talk in person. Tellers and bankers often guide customers through more complex transactions, such as loan applications and payments, opening accounts or canceling payments or services. And they can look them in the eye, making a personal connection that’s hard to measure but deeply valuable in terms of customer loyalty. And while digital banking puts the ability to bank in the palm of the customers’ hand, when you need cash, neither a website nor a smartphone app can help you. That’s where an ATM really shines.

• But ITMs enable much more than the ATM including many of the services they expect from tellers and bankers.
• In addition to video technology, ITM machines are equipped with added functionality to support a wider range of transactions and services. A coin dispenser for distributing different coins
• An ID scanner for verifying the customer’s identity
• A signature pad

With equipment like this, the teller or banker can talk with the customer face to face, explain the process of applying for a loan, check their ID and even help them sign any necessary documents, right there on the spot. They can also do things like verify a customer’s identity if their credit card is lost or stolen and distribute funds in any denominations of cash and change.

ITMs give customers the convenience of an ATM plus the human experience of talking with someone in person.

How do ITMs benefit FIs?

• Savings per transaction. ITMs and ATMs significantly reduce your per-transaction expenses—from $4 with an in-person teller to below $1 for a self-service device.
• Operational efficiency. Most transactions performed by a teller can be handled through an ITM—cash withdrawals, check cashing, cash and check deposits and loan payments. Using ITMs, some FIs have reduced drive-through transaction times by 65% while increasing customer satisfaction by more than 90%.
• Valuable customer connections. ITMs free up your branch employees to build deeper relationships with customers who require human interaction. Branch labor optimization. For FIs to fully capitalize on their branch networks, they must optimize the way branch staff are employed. With an ITM in place, branch staff can focus on more complex customer transactions, using the ITM to manage the day-to-day transactions.
• Increased convenience. While employees aren’t available 24/7, ITMs usually provide live video beyond a branch’s standard operating hours. Competitive advantage. ITMs are a relatively new innovation, which makes them memorable for your customers. Deploying ITMs can differentiate your FI from your competitors, especially for millennials and Gen Z, who like innovation.
• Greater market presence. ITMs can extend your reach at a fraction of the cost of opening another branch. You can strategically install them in high-traffic areas such as college campuses, retail parking lots, manufacturing plants, malls and other locations, increasing your brand recognition and market footprint.
• Expanding specialty services. ITMs can make it easy to offer more product and service specialties to your customers, including mortgages, wealth management, fraud protection, multi-lingual speakers and other specialties that can be centralized and offered over a wider geographical area.
• Facilitating remote service when needed. ITMs provide a flexible operational model since tellers don’t have to be onsite or in a centralized call center to provide service.

Heiwote Tadesse, SVP of member relations for US-based Associated Credit Union, agreed that the ITM has had a positive impact on the customer experience. “We’re always looking for new ways to invest in member experience, which is how we began using ITM machines,” she said. “At first, we were concerned that using ITMs would lead to a less personal connection with our members, but we’re seeing now that members are showing increased satisfaction with this as well. They appreciate being able to conduct transactions without needing a face-to-face conversation.”

How to add ITMs to your service mix

The ITM experience will be new to many of your customers, so you will want to introduce them carefully to encourage acceptance.

To get the most from this new technology and make sure your rollout process is smooth for employees and customers, you’ll want to include the following proven rollout strategies:

• Make customers aware of and comfortable using the new technology. Many FIs are seeing very positive results from their customers, who tend to take to ITMs easily. Make sure that you extend your branding to your ITMs so that customers know who they are working with, especially if your ITM is at a location outside of your branch.
• Provide helpful content to educate everyone about the benefits and use of ITMs. Try adding simple, appealing descriptions via statement inserts, branch posters and even short demo videos. Your communications should answer the following questions: Why is it here? What’s in it for me (customer)? How does it work? Where and when can I use it? What transactions can I handle with ITMs?
  

The way customers interact with your branch is continuing to evolve. You’re probably offering more advisory services than simple transactions. As today’s branches enter the next phase of transformation, ITMs are a proven way to offer innovative and convenient technology to customers where and when they need it. By providing ITMs, FIs will be able to offer more personalized services to customers while controlling operational expenses. ITMs are part of the future of banking enabling greater convenience and accessibility, while still allowing FIs to continue to serve as a trusted hub of financial advice.