ATM – Mobile Integration Guide

Transcription

GUIDE
ATM – Mobile
Integration
Guide:
Strategies for Successful
Omnichannel Banking
DEVELOPED AND PUBLISHED BY:
SPONSORED BY:
CONTE NTS
Page 3
Contributing organizations
Page 4
Introduction
ATM-mobile integration survey
Lack of integration
Future plans
Innovators
ATM growth
ATM models
Mobile growth
Channel architecture
Page 10
Chapter 1 ATM-mobile integration survey results
Page 19 Chapter 2 Key trends in cross-channel integration
Cardless withdrawals through mobile pre-staging
QR codes
Mobile wallets
Omnichannel
Branch transformation
ATM models
Beyond silo channels architecture
Fundamental change
WWS
Page 26 Chapter 3 Case Studies of ATM and branch innovators
Bank of America
Branches
BBVA
BBVA Compass
ABIL
Nationwide Building Society
Royal Bank of Scotland
Customer recommendations
Mobile ATM
St. George Bank
Wells Fargo
© 2014 NETWORLD MEDIA GROUP
Page 35 Chapter 4 Interviews with innovative banks
Alfa Bank
Banco Sabadell
Bank of Ireland
BBVA
BBVA Compass
CaixaBank
Low added value transactions
Chase
Co-op Financial Services
Commerzbank
CU24
Erste Group Bank/Ceska Sporitelna
HSBC Bank USA
Intesa Sanpaolo Bank
Poste Italiane/BancoPosta
SunTrust Bank
UBS
Branch of the future
Page 53
References
Published by Networld Media Group © 2014 Networld Media Group
Written by Robin Arnfield, contributing writer, ATMmarketplace.com
Tom Harper, president and CEO
Kathy Doyle, executive vice president and publisher
Suzanne Cluckey, editor
Greg Sharpless, editorial director
Tiffany Smith, custom content editor
2
CONTRIBUTING ORGANIZATIONS
Auriga (Italy)
Andrew Martin, Retail Banking Consulting Group (U.K.)
ATMIA
Bank of Ireland
Banco Sabadell (Spain)
Bank of America (U.S.)
BBVA (Spain)
BBVA Compass (U.S.)
David Cavell, international retail banking consultant (U.K.)
CaixaBank (Spain)
Chase (U.S.)
Commerzbank (Germany)
Barry Forbes, independent payments consultant (U.K./
South Africa)
Karen Epper Hoffman, Writer/Analyst, Lafferty Group
HSBC Bank USA
Intesa Sanpaolo Bank (Italy)
Nationwide Building Society (U.K.)
Poste Italiane/BancoPosta (Italy)
Royal Bank of Scotland (U.K.)
SunTrust Bank (U.S.)
UBS
UniCredit (Italy)
Wells Fargo (U.S.)
Co-op Financial Services (U.S.)
CU24 (U.S.)
Ed O’Brien, Director, Banking Channels Advisory Service,
Mercator Advisory Group (U.S.)
Erste Group (Austria)/Ceska Sporitelna (Czech Republic)
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I NTRO DUCTIO N
ATM Marketplace surveyed financial institutions worldwide and conducted
detailed interviews with leading European and U.S. banks to compile its
2014 ATM-Mobile Integration Guide, illustrating trends in multichannel
banking around the world.
The Guide examines how banks are developing cross-channel strategies
linking their ATMs with their mobile channels, their branches and Internet
banking. It also identifies how the role of the ATM will evolve in the future
omnichannel banking environment.
ATM Marketplace thanks Auriga for allowing us to bring this publication to
you at no cost. We also thank all the participants in our survey.
ATM-mobile integration survey
In July 2014, ATM Marketplace conducted an international survey of banks’
multichannel banking services and strategies, including their deployment of
ATM-mobile integration technology.
The survey received responses from 169 banks, credit unions and other
types of financial institutions (FIs) from around the world.
Robin Arnfield
ATMMarketplace.com
Robin Arnfield has been a technology
journalist since 1983. His work has
been published in ATM Marketplace,
Mobile Payments Today, ATM & Debit
News, ISO & Agent, CardLine, Bank
Technology News, Cards International
and Electronic Payments International.
He has covered the United Kingdom,
European, North American and Latin
American payments markets.
Respondents were asked “How many ATMs do you have?” One-third (33
percent) have more than 2,000 ATMs, while 28 percent have 1–100 ATMs,
20 percent have 101–500 ATMs and 19 percent have 501–2,000 ATMs.
For 44 percent of respondents to a question about investment priorities,
investing in multichannel integration is a top priority, while 41 percent said
investing in integration is important, but other technology investments have
greater priority.
Just over half (54 percent) of respondents have a branch transformation
program, but only 38 percent have a branch of the future where they test
new self-service applications.
Lack of integration
The survey found that many banks have yet to integrate their ATM and mobile channels. Three-quarters (76 percent) of those that responded to the
question “Do you currently offer mobile integration services at your ATMs?”
said they do not.
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Mobile ATM transactions involving one-time codes are the most popular
mobile cash access method, while ATM location services are the most
prevalent mobile integration service offered, the survey found.
Of the responses to the question, “Which mobile integration services do you
offer?”, 75 percent offer ATM location via mobile devices and 56 percent
offer cardless ATM transactions using a one-time authentication code.
One-fifth (22 percent) offer cardless transactions from mobile wallets using
QR codes, while 19 percent offer a real-time view on the user’s mobile device of services available at a selected ATM, and 19 percent offer cardless
transactions using near field communications-enabled mobile devices.
The survey found a low level of adoption of technology allowing transactions to be pre-staged on one channel for completion on another. Only 24
percent of respondents when asked about transaction pre-staging allow
customers to pre-stage a transaction on one channel, such as the web or
mobile banking, and complete it on another, such as an ATM.
Auriga’s WinWebServer (WWS) multichannel and cross-channel platform,
offering what the banking industry refers to as “omnichannel” capabilities,
allows customers to pre-stage ATM withdrawals on their mobile devices.
“Users can configure their preferred withdrawal details in our app and
simply select these predefined preferences at the ATM,” said David Smith,
Auriga’s business development director. “The net effect is greater consumer
convenience, security and transaction speed.”
Future plans
Of the responses to the question, “Which mobile integration services do you
plan to offer at your ATMs within the next two to three years?”, 54 percent
plan to offer ATM location via mobile devices.
Nearly half (45 percent) plan to offer cardless transactions from NFCenabled mobile devices and 37 percent plan to allow customers to manage
their ATM or debit card accounts from mobile devices.
Only 30 percent of respondents when asked about personalization allow
their customers to personalize the user interface and customer experience
at their ATMs and other self-service devices such as smartphones. However, 39 percent plan to offer their customers this option in the next two to
three years.
2014 ATM SOFTWARE TRENDS & ANALYSIS
5
Nearly half (46 percent) of responses to a question about self-service banking terminals offer assisted self-service where staff equipped with tablets
are able to help customers perform transactions at the terminals.
However, 56 percent of respondents plan to offer assisted self-service
within the next two to three years.
The survey also found a low level of adoption in remote video teller technology. The majority (85 percent) of respondents when asked about videoconferencing don’t offer videoconferences with customer service staff or
product experts at their ATMs or self-service banking terminals.
However, 64 percent of respondents aim to offer videoconferencing at their
ATMs or self-service banking terminals within the next two to three years.
Innovators
For the Guide, ATM Marketplace conducted in-depth interviews with innovative banks in Europe and the U.S., including Spain’s BBVA and CaixaBank,
Chase, HSBC Bank USA, Italy’s Intesa Sanpaolo Bank and UniCredit, and
Russia’s Alfa Bank. The interviews revealed a strong interest in mobile-ATM
integration and in offering user interface personalization at ATMs.
“We’re currently developing our cross-channel strategy so that any transaction can be prepared and/or launched using any channel and completed in
any other,” a CaixaBank spokesperson said.
Mobile is central to CaixaBank’s multichannel strategy. “We’re promoting
mobile not just as the authentication method for accessing home banking
but also for interacting with our ATMs through cardless NFC technology,”
the CaixaBank spokesperson said.
For CaixaBank, it is important to allow customers to manage their ATM
interaction and personalize their ATM interface from mobile devices, the
spokesperson said.
“Consumers are embracing
mobile technology very
rapidly and expect it to be
integrated into banking and
payments channels.”
— Terry Pierce, senior product manager
“Consumers are embracing mobile technology very rapidly and expect it
to be integrated into banking and payments channels,” said Terry Pierce,
senior product manager at U.S. credit union ATM network operator Co-op
Financial Services.
For Manuel Crespo, BBVA’s head of physical channels technology, multichannel integration is a very high priority.
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“It’s very important to enable all transactions initiated on mobile devices to be
seamlessly completed on another channel,” he said. “Since mobile devices
play such an important role in our lives, they should be considered as the
main method for authenticating payments and customer service requests.”
Peter Caiazzi, head of direct channels at Intesa Sanpaolo Bank, said Intesa
plans to increase the functionality of its ATMs and their sales potential, so
that the ATMs offer almost all the transactions the tellers provide.
“For example, we want our customers to be able to manage their cards and
activate pre-approved loans at our ATMs. However, we won’t offer the highest value-added transactions, such as mortgages, as we provide consulting
with our staff for these products. Human contact is still very important in
multichannel banking,” he said.
ATM growth
According to U.K.-based consultancy Retail Banking Research, the global
installed base of ATMs rose by 8 percent to 2.6 million in 2012.
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ATM models
International retail banking consultant David Cavell says banks are beginning to deploy two different types of ATM:
• Advanced multifunction ATMs;
• Tablet-based ATMs where the screen is mounted like a portrait tablet
instead of integrated inside a fascia.
Cavell noted that everything that can be done on a high-function ATM or
self-service kiosk can now be done on a tablet. In this scenario, the ATM
would be reduced to a physically-secure cash storage box, which would be
controlled by a tablet belonging to the customer or supplied by the bank.
“Mobile and tablet banking use
is rising rapidly and becoming
a preferred banking method
as consumers take advantage
of multiple channels for their
banking activities.”
— Karen Augustine, manager of
Primary Data Services, Mercator
Mobile growth
According to Forrester Research, the number of European mobile phone
banking users will rise from 42 million users in 2013 to 99 million in 2018,
while European tablet banking users will rise from 19 million users in 2013
to 115 million in 2018.
In January 2014, the European ATM Security Team released the results of
a poll of users of its website on attitudes toward contactless ATM access.
According to EAST, 74 percent of respondents indicated that they would be
happy to use contactless card or smartphone technology to make an ATM
withdrawal; only slightly more than one-quarter said they wouldn’t want to
use the technology
A U.S. consumer survey by Mercator Advisory Group in November 2013
found that banking via mobile device is fast becoming a preferred way for
consumers to conduct banking activities and manage financial information
on-the-go.
“Mobile and tablet banking use is rising rapidly and becoming a preferred
banking method as consumers take advantage of multiple channels for
their banking activities,” said Karen Augustine, manager of Primary Data
Services at Mercator.
Channel architecture
“Instead of saying that they have independent service silos and channels,
each with their own functionality, and trying to integrate these channels at
8
the back-end, banks need to step right out of the banking environment and
look at their channels from the customer perspective,” said Auriga’s Smith.
However, this process involves a fundamental change in a bank’s channel
architecture. According to Smith, Auriga sees the mobile phone, not the
ATM, as the center of the omnichannel banking environment, because the
mobile phone goes everywhere with the customer.
Instead of investing in technology that perpetuates a fragmented services
approach, banks should deploy systems that facilitate the customer experience by sharing the same data and business rules across multiple channels, Smith said.
“ATMs must be able to provide customers with all the functions available
on other channels,” said Carmine Evangelista, Auriga’s chief technology officer. “When banks implement a truly multichannel architecture, their ATMs
will be able to provide customers with all the functions available on other
channels, without duplicating development costs.”
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CH A P TE R 1
ATM-mobile integration
survey results
In July 2014, ATM Marketplace surveyed FIs worldwide about their deployment
of ATM-mobile integration technology and their multichannel banking strategies.
1. Description of respondents’ companies
The survey received responses
from 113 banks, 40 credit unions
and 16 other types of FIs from
around the world. In addition, 172
respondents described themselves
as ‘other’ and were therefore not
included in the survey.
Other
50%
Bank
33%
5% Credit union
12%
Financial
institution
2. In which region is your headquarters located?
Australia
Canada
2% 4%
America/
8% Latin
South America
9% Eastern
Europe
United
States
31%
Western
Europe
10%
Asia
20%
Middle
East/Africa
One-third (31 percent) of respondents to this
question said their headquarters are in the U.S.
One-fifth (20 percent) of respondents have their
headquarters in Asia, followed by the Middle
East and Africa with 17 percent, Western
Europe with 10 percent and Eastern Europe
with 9 percent. Latin America/South America
accounted for 8 percent, Canada for 4 percent
and Australia for 2 percent.
17%
10
3. How many ATMs are in your fleet?
4. Do you currently offer mobile integration
services at your ATMs?
1-100
More
than 2,000
Yes
28%
33%
24%
101-500
501-2,000
19%
20%
No
76%
One-third (33 percent) of respondents to this
question have more than 2,000 ATMs, while
28 percent have 1–100 ATMs, 20 percent
have 101–500 ATMs and 19 percent have
501–2,000 ATMs.
The survey identified that many banks have yet to integrate
their ATM and mobile channels. Three-quarters (76 percent)
of the respondents to this question said they don’t currently
offer mobile integration services at their ATMs.
5. Which of the following mobile integration services do you offer?
6%
9%
Mobile ATM transactions involving one-time
codes are the most popular mobile cash
access method among survey respondents,
ahead of QR codes and NFC, while ATM
location services are the most prevalent
mobile integration services offered.
Voice guided navigation on a mobile device
for customers with visual impairment
Allowing a customer to use mobile device
to customize their own ATM menu
19%
Offering a real-time view on a mobile device
of services on the selected ATM
19%
Managing ATM or debit card accounts from
a mobiledevice, like setting transaction limits
and blocking/unblocking a card
19%
Cardless ATM transactions involving Near Field
Communications (NFC) enabled mobile devices
22%
Of the respondents to the question “Which
of the following mobile integration services
do you offer?”, 75 percent offer ATM
location via mobile devices and 56 percent
offer cardless ATM transactions using a
one-time authentication code.
Cardless ATM transactions from
mobile wallets using QR codes
Cardless ATM transactions using
a one-time authentication code
56%
Locate the nearest ATM using a mobile device
75%
One-fifth (22 percent) offer cardless
transactions from mobile wallets using QR
codes, while 19 percent offer a real-time
view on the user’s mobile device of services
available at a selected ATM, and 19 percent
offer cardless transactions using NFCenabled mobile devices. Just 6 percent offer
voice-guided navigation on mobile devices
for customers with visual impairment.
11
6. Which mobile integration services do you plan to offer at your ATMs within the next two to three years?
Locate the nearest ATM using a mobile device
Cardless ATM transactions involving Near Field
Communications (NFC) enabled mobile devices
Cardless ATM transactions using
a one-time authentication code
Managing ATM or debit card accounts from
a mobile device, like setting transaction limits
and blocking/unblocking a card
Cardless ATM transactions from
mobile wallets using QR codes
21%
20%
None
45%
40%
37%
31%
Offering a real-time view on a mobile device
of services on the selected ATM
Allowing a customer to use mobile device
to customize their own ATM menu
20%
Voice guided navigation on a mobile device
for customers with visual impairment
15%
54%
Of the respondents to this question, 54
percent plan to offer ATM location via mobile
devices within the next two to three years.
Nearly half (45 percent) plan to offer
cardless transactions from NFC-enabled
mobile devices, 40 percent plan to offer
cardless transactions using a one-time
authentication code, and 31 percent plan
to offer cardless transactions from mobile
wallets using QR codes.
About 37 percent plan to allow customers
to manage their ATM or debit card accounts
from mobile devices within the next two to
three years.
One-fifth (20 percent) of respondents don’t
plan to offer any mobile integration services
at their ATMs in the next two to three years,
while 20 percent plan to allow customers
to use mobile devices to customize their
own ATM menu and 15 percent plan to offer
voice-guided navigation on mobile devices
for customers with visual impairment.
7. Do you offer customers the ability to conduct videoconferences with customer
service staff or product experts at your ATMs or self-service banking terminals?
Yes
15%
No
The majority (85 percent) of respondents to
this question don’t offer videoconferences with
customer service staff or product experts at
their ATMs or self-service banking terminals.
85%
12
8. Do you plan to offer videoconferencing with customer service staff or product experts
at your ATMs and self-service banking terminals within the next two to three years?
Two-thirds (64 percent) of respondents do not plan to offer
videoconferencing with their customer service staff or product
experts at their ATMs and self-service banking terminals within the
next two to three years.
Yes
36%
No
64%
9. Do you offer assisted self-service banking
terminals (e.g., kiosks or multifunction ATMs)
in your branches where staff with tablets are
able to help customers perform transactions
at the terminals?
Yes
No
54%
10. Do you plan to offer assisted self-service banking
terminals in your branches where staff equipped
with tablets are able to help customers perform
transactions at the terminals within the next two
to three years?
No
46%
44%
Nearly half (46 percent) of respondents to this question
offer assisted self-service banking terminals in their
branches where staff equipped with tablets are able
to help customers perform transactions at the terminals.
Yes
56%
Just more than half (56 percent) of respondents to this
question plan to offer assisted self-service banking terminals
in their branches within the next two to three years.
11. Do you provide bank-owned iPads for use by customers in your branches for carrying out
transactions, looking up products or making appointments with staff?
Yes
33%
No
Two-thirds (67 percent) of respondents to this
question don’t supply bank-owned iPads or other
tablets for use by customers in their branches.
67%
13
12. Do you plan to provide bank-owned iPads for
use by customers in your branches for carrying
out transactions, looking up products or making
appointments with staff within the next two to
three years?
13. Do you offer a facility for customers to use their
smartphones as an authentication method for
logging into Internet banking?
62%
48%
52%
Yes
No
38%
Nearly half (48 percent) of respondents to this question plan
to supply bank-owned iPads and other tablets for use by
customers in their branches in the next two to three years.
Yes
No
Nearly two-thirds (62 percent) of respondents to this
question allow customers to use their smartphones
as an authentication method for Internet banking.
14. Do you plan to offer a facility for customers to use their smartphones as an authentication
method for logging into Internet banking within the next two to three years?
Yes
46%
No
55%
Approximately half (45 percent) of
respondents to this question plan to allow
customers to use their smartphones as an
authentication method for Internet banking
within the next two to three years.
15. Do you offer a facility for customers to personalize the user interface and customer
experience at your ATMs or on other self-service channels such as smartphones?
Yes
30%
No
70%
A mere 30 percent of respondents to this
question allow their customers to personalize
the user interface and customer experience
at their ATMs and other self-service devices
such as smartphones.
14
16. Do you plan to offer a facility for customers to personalize the user interface and customer experience
at your ATMs or on other self-service channels such as smartphones within the next two to three years?
Only 39 percent of respondents
to this question plan to offer their
customers a facility to personalize
the user interface and customer
experience at their ATMs and
other self-service channels such
as smartphones in the next two to
three years.
17. Do you offer mobile device-based personto-person fund transfers?
Yes
39%
No
61%
18. Do you provide a facility for recipients of
mobile person-to-person fund transfers to
withdraw the funds at an ATM?
No
37%
Yes
63%
Yes
55%
Nearly two-thirds (63 percent) of
respondents to this question offer
mobile P2P fund transfer services.
No
45%
Just more than half (55 percent) of respondents to
this question allow recipients of mobile P2P fund
transfers to withdraw the money from ATMs.
19. Do you offer the ability for customers to pre-stage a transaction on one channel, such as
mobile or web banking, and then complete it on another channel such as the ATM?
Yes
24%
No
76%
Only 24 percent of respondents to this question allow
their customers to pre-stage a transaction on one
channel, such as the web or mobile banking, and
complete it on another channel, such as an ATM.
15
20. Do you have a branch of the future where you test new self-service applications?
38%
62%
Yes
No
About 38 percent of respondents to
this question have a branch of the
future where they test new self-service
applications.
21. How do you see the role of the ATM within your branches evolving over the next few years?
Answers to this question include:
• Acting as a 24-hour branch.
• A very crucial touch point through which banks can reach
customers beyond transactional banking.
• Adding additional functionality at ATMs such as remote
video teller services.
• Alignment with teller transactions, e.g. 100 percent cash
deposit availability.
• ATMs will become purely cash dispensers and won’t need
a personal deposit functionality as mobile deposit and P2P
transfers continue to grow.
• ATMs will continue to be an important channel for servicing
clients over the next few years.
• ATMs will become 100 percent cardless, and fully
integrated with internet-based mobile browser
applications.
• ATMs will be a main point of contact for our customers
to do account deposits. We will move teller transactions
to our deposit-accepting ATMs along with adding
interactive kiosk functionality.
• Biometric authentication offered at ATMs.
• CRM role with more sales-oriented applications.
• Availability of e-receipts and QR codes.
• Increased footfall with the addition of transactions
including domestic remittances for unbanked customers.
• Interfacing with other channels to form a robust platform.
• ATMs will provide another channel for offering relevant
product or services to customers using CRM. Customers
will be able to customize their ATM menu.
• ATMs will become the channel of choice to fulfill
transactions initiated from mobile devices; we envisage
ATMs fulfilling 80 percent of teller counter transactions,
freeing up our teller counters to perform other highervalue transactions.
• ATMs will be used to cross-sell more of our bank’s products,
and will perform more cashless transactions.
• Moving toward all envelope-free ATMs and looking into
multifunction ATMs.
• ATMs will become the primary service channel,
replacing tellers.
• Pushing more self-service transactions to our cashhandling ATMs by training end users in branches.
16
22. Do you have a branch transformation program?
No
46%
Just more than half (54 percent)
of respondents have a branch
transformation program.
Yes
54%
23. What benefits do you see from integrating your mobile and ATM channels?
• A good way for recipients of mobile P2P transfers to obtain
cash from ATMS.
• Additional opportunities for convenient banking by our
customers, and less traffic in branches.
• Appeals to younger customers such as millennials.
• Benefits include convenience, cost reduction and security.
• Improved user experience.
• Better customer service and retention.
• Channel convergence/migration.
• Cost-savings.
• Expand customer base to unbanked segment.
• Customer satisfaction and cross-selling.
• Customers have a device (smartphone/tablet) that has
more capabilities for performing more sophisticated
transactions compared with an ATM.
• Empowering customers to experience 24/7 banking
service at their own convenience from multiple channels.
• It will allow for the pre-staging of ATM transactions,
resulting in a faster turnaround time and less queuing.
• In Africa, mobile-ATM integration is the only route. Cardreading ATMs and POS units are far too expensive,
while 90 percent of the population have their own
banking terminal — a cellphone.
24. How big a priority is it for you to invest in multichannel banking integration?
44%
41%
A top priority
It's important but
other technology
investments have
greater priority
For 44 percent of respondents to this question, investing in
multichannel integration is a top priority, while 41 percent
said investing in integration is important but other technology
investments have greater priority.
15%
Not a priority
For 15 percent of respondents, investing in multichannel
integration isn’t a priority.
17
25. What response have you seen from your customers to your mobile-ATM integration initiatives?
• A good response from customers.
• Appreciation coupled with high expectation.
• Better response from our younger users and worse from older customers.
• Enthusiastic acceptance and adoption.
• Faster adoption of new functionality.
• Favorable.
• Great response — they love it.
• Adoption is growing sharply.
• Increased revenue, repeat customers, very positive feedback from customers and employees.
26. What personalization features do you offer at your ATMs and other self-service channels?
More than one-third (38 percent) of respondents
to this question provide personalized product
advertising and offers at their ATMs, while 28
percent offer customizable menus and 28 percent
offer the ability to set up alerts based on specific
rules. Just 19 percent offer the ability to produce
specific reports.
Significantly, 44 percent of respondents don’t
offer customizable menus; personalized product
advertising and offers; the ability to set up alerts
based on specific rules or the ability to produce
specific reports.
44%
None of the above
Personalized
product advertising
and offers
38%
Customizable
menus
28%
The ability to set up alerts
based on speciﬁc rules
28%
The ability to
produce speciﬁc
reports
19%
18
CHA PTER 2
Key trends in
cross-channel integration
Due to the rapid rise in smartphone and tablet usage, the mobile channel is
becoming increasingly central to consumers’ banking experience.
Forrester Research predicts that the number of European mobile phone
banking users will rise from 42 million users in 2013 to 99 million in 2018,
while European tablet banking users will rise from 19 million users in 2013
to 115 million in 2018. Growing tablet ownership, the increased availability
of tablet banking apps, and fewer security fears among tablet users versus
mobile users are among the key drivers behind the tablet banking growth
predicted by Forrester.
“As customers start using their tablets and smartphones to do their banking, some will stop using their desktop and laptop PCs,” said Forrester
analyst Stephen Walker.
A November 2013 U.S. consumer survey carried out by Mercator Advisory
Group found that banking via mobile device is fast becoming the preferred
method for consumers to conduct banking activities and manage financial
information on the go. Mercator found that nearly half of U.S. consumers
perform banking activities on mobile phones or tablets, up from around
one-third in 2012.
Karen Augustine, Mercator’s manager of Primary Data Services, said that
mobile and tablet banking use is rising rapidly and becoming a preferred
banking method as U.S. consumers take advantage of multiple channels
for their banking activities.
“Mobile banking users are most likely to re-evaluate their financial institutions and open new accounts,” she said. “Financial institutions need to continue to improve the usability and functionality for mobile and tablet banking
or consumers will take their business elsewhere.”
“The number of European mobile
phone banking users is set to
grow from 42 million users in
2013 to 99 million in 2018, while
European tablet banking users
will rise from 19 million users in
2013 to 115 million in 2018.”
— Source: Forrester Research
19
Cardless withdrawals through mobile pre-staging
“Our survey found that there is a strong interest among U.S. consumers
in being able to pre-stage ATM transactions on mobile devices,” said Ed
O’Brien, director of Mercator’s Banking Channels Advisory Service. “They
like the idea of the greater security and time-saving offered by cardless
transactions compared to card-based ATM transactions.”
Barry Forbes, a South Africa-based independent payments consultant,
said he believes it’s important to appreciate that pre-staging is really a
mobile banking application and is very complex to implement in a nonon-us environment.
O’Brien estimates that U.S. banks will move from pilots of ATM-mobile integration services to implementation within the next six to 18 months.
“QR codes are increasingly being used for mobile cash access at ATMs
because they don’t require hardware upgrades at ATMs,” he said. “I think
QR codes could be a bridge strategy to NFC-based cardless withdrawals
over the next few years.”
QR codes
A QR code-based ATM transaction involves cash being withdrawn from a
mobile wallet linked to a bank account.
Customers pre-stage a QR code-based cash withdrawal on their smartphone using their mobile banking app. After they have initiated the transaction, a QR code may be texted to their smartphone and then scanned at
the ATM in order to authenticate the withdrawal. Alternatively, the ATM may
display a QR code which the user scans on their smartphone.
According to “Cardless ATMs, Are Mobile Transactions the Future of the
ATM Industry?”, a white paper sponsored by the ATMIA (ATM Industry Association) and Kahuna ATM Solutions, the security advantage of QR codes
is that they typically work like one-time tokens, as they are unique codes
that can only be used once.
Examples of banks deploying QR codes for ATM transactions include Turkey’s Türk Ekonomi Bankasi and IsBank, and U.S.-based WinTrust Financial Trust, Diebold Federal Credit Union and City National Bank.
Mobile wallets
Twenty percent of mobile phones will have mobile wallet capability by 2018,
according to U.K.-based Juniper Research. This compares to less than 10
percent at the end of 2013.
20
According to Juniper Research, two wallet models will drive growth:
• In emerging/developing markets, stored-value accounts are enabling
first-time financial access for unbanked individuals. Juniper Research
anticipates a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.
• Across North America and Western Europe, wallets are expected to
feature contactless payment functionality, such as host card emulationbased (HCE) NFC services.
With both HCE- and QR code wallet-based payment schemes, mobile payments take place using payment credentials stored in the cloud instead of on
a smartphone’s secure element, the traditional model for NFC payments.
Omnichannel
O’Brien said he thinks banks need to move from a multichannel to an
omnichannel approach, stating that, “True omnichannel includes not just
integration but also collaboration between the different channels so banks
can have a 360 degree real-time view of customers’ needs and behaviors,
and customers can start a transaction on one channel and complete it on
another and obtain real-time information.”
Auriga was ahead of the curve, because it developed a complete solution
which is both multichannel and cross-channel before the market started
speaking about omnichannel.
O’Brien said multichannel banking systems typically use inefficient pointto-point channel integration technology that has to be patched on each
channel with every new operating system or application update. To achieve
omnichannel integration, banks should use integration hubs.
By using an integration hub, banks are able to adjust their software once at
one level for all their channels, he said. Another benefit is that an integration hub provides bank customers with near real-time capability. By contrast, multichannel systems don’t offer real-time integration, as they rely on
batch processing to update balances on different channels.
“The concept of omnichannel is growing in importance in retail banking, with
the need for customer convenience taking precedence,” wrote Ron Mazursky, director of Mercator’s Debit Advisory Services, in Payments Journal.
“Consumers want the comfort of using the easiest method to reach their bank
and transact in the way that’s easiest for them at a given time. This could
include starting a transaction on mobile, moving to online when they reach
the office, and ending the transaction with a call to their bank officer.”
“The concept of omnichannel
is growing in importance in
retail banking, with the need
for customer convenience
taking precedence.”
—wrote Ron Mazursky, director of Mercator’s
Debit Advisory Services, in Payments Journal
21
A key driver for investing in omnichannel integration is to improve the customer experience.
“C-level bank executives realize the importance of offering good customer
experience if their bank is to remain a primary financial institution for their
customers,” O’Brien said. “Banks are moving to omnichannel so they can
compete more effectively against the direct banks and the new innovative
payment companies as well as against other incumbent banks.”
O’Brien said banks need to be able to deploy analytical CRM technology so
they can predict the types of products their customers will want to purchase.
“This will result in customers feeling that their bank appreciates and
understands them, and enable the bank to increase its share of their
wallet,” he said.
Branch transformation
Large U.S. banks are moving to a hub-and-spoke branch infrastructure
involving a small number of full-size branches and a larger number of minibranches offering self-service machines as well as assisted self-service.
Assisted self-service involves bank staff using tablets to help customers
with their self-service transactions and advise them on products of potential
interest to them.
“When a customer puts their card into an ATM or self-service kiosk, a message goes to an employee’s tablet to say the customer is at that machine,”
said David Smith, Auriga’s business development director.
The agent can see on their tablet what the customer is doing at that machine, as well as the transaction history and account status for the customer and what marketing promotions have been sent to them. One benefit
is that, if the customer needs to withdraw $2,000 to buy a car, for example,
and their daily limit is $1,000, the agent can override this block and let the
customer withdraw the $2,000, Smith said.
“Mobile is changing the branch from the transactional hub which it used to
be, to a sales center,” said Karen Epper Hoffman, a writer/analyst with U.K.based Lafferty Group. “I’m seeing a lot more bank branches that look like
Apple stores, with staff carrying iPads and tablets.”
Epper observed that tellers are using mobile technology to interact more effectively with customers. And banks are also starting to locate their product
specialists in central offices and allow customers to interact with them via
video links at in-branch self-service kiosks.
22
ATM models
According to U.K.-based international retail banking consultant David
Cavell, two different ATM models are beginning to be deployed:
• Advanced multifunction ATMs such as those installed by BBVA and
CaixaBank.
• Tablet-based ATMs where the screen is mounted like a portrait tablet
instead of being integrated within a fascia. One example is Chase’s
tablet-based Express Banking Kiosk ATMs.
“Ultimately, a bank could remove the tablet from the ATM, reducing the ATM
to a physically secure storage box which is controlled by a customer-owned
or bank-supplied mobile device,” Cavell said. The ATM’s role would be
restricted to accepting and dispensing money.
“Everything that you can do on a high-function ATM or self-service kiosk can
now be done on a tablet,” Cavell said. “You need to think what your branches
will be like in five years’ time, and what devices you will be offering in your
branches. Then you need to develop a strategy for these devices.”
In October 2013, the Ukraine’s PrivatBank announced the Topless ATM, a
“black box” without a screen which it described as the world’s first contactless Android-based ATM. Because the Topless ATM is controlled by
a customer’s smartphone and has no unnecessary components such as
a keypad or card reader, it costs half of the price of a conventional ATM,
PrivatBank says.
“In the branch of the future,
employees’ role will change
from being providers of
services with low added
value to consultants advising
customers about the bank’s
products. Greeters will assist
customers with their selfservice transactions.”
— Carmine Evangelista,
Auriga’s chief technology officer
23
“We developed the Topless ATM by ruthlessly cutting off the completely
unnecessary upper part of a typical ATM,” said Alexander Vityaz, vice chairman of PrivatBank’s Board. “Now every customer has their own personal
display, card reader and keyboard – a smartphone.”
Beyond silo channels architecture
According to Auriga’s Smith, instead of saying that they have independent
service silos and channels, each with their own functionality, and trying to
integrate these channels at the back-end, banks need to step right
out of the banking environment and look at their channels from the customer perspective.
“Banks need to ask themselves how customers want to interact with their
bank, for example through smartphones and tablets, and what banking
tasks they want to do,” Smith said. “Our WinWebServer (WWS) solution already supports the omnichannel requirement to access any service through
any channel, a feature that has been well proven by our customers and
greatly appreciated by consumers.”
Fundamental change
The process of moving to an omnichannel environment requires a fundamental change in a bank’s channel architecture.
“Rather than investing in technology that perpetuates a fragmented services approach, banks should implement systems that facilitate their
customers’ experience by sharing the same data and business rules across
multiple channels and touch points,” Smith said.
“I’m seeing a number of banks accept that their existing IT infrastructure
can’t adapt to the omnichannel world and seek partners with the ability to
provide cross-channel solutions,” said Andrew Martin, CEO of U.K.-based
Retail Banking Consulting Group.
Smith stressed the importance of banks educating staff and customers
about the new self-service capabilities that they deploy in their branches
and on their mobile channels.
“We’re seeing the first pilots of the new mobile-centric architecture,” said
Smith. “Banks which are sitting on the sidelines and don’t get their new
architecture in place will be left several years behind the leaders.”
24
WWS
In Auriga’s WWS omnichannel platform, the mobile is the front-end gateway
to all other channels such as ATMs and Internet banking. Using the mobile
device as the authentication method for Internet banking has a significant
effect on reducing fraud.
“WWS converts every channel into a web environment,” Smith said. “It
also allows customers to use their mobile device to personalize the options
menu at their bank’s ATMs so they only see the transactions they are interested in. They can also set up third-party ATM withdrawals from their bank
accounts from their mobile device through WWS. This means that a parent
can send their son or daughter a one-time authentication code enabling
them to withdraw cash from the parent’s account without needing a card.”
“Banks need to have common
imagery and navigation tools
across all their customeractivated devices along
with a high degree of user
customization.”
— David Cavell, international retail
banking consultant
25
CHA PTER 3
Case Studies of ATM
and Branch Innovators
This chapter profiles leading innovators in ATM, digital banking and branch
transformation in Europe, the U.K. and the U.S.
Bank of America
Bank of America launched its teller assisted ATMs, which combine ATM
self-service features with the human touch of a teller, in April 2013. The
bank is installing these advanced ATMs in banking centers, drive-up and
remote locations, offering video links to remote BofA call center staff during
extended hours.
Bank of America launched its teller assisted ATMs, which combine ATM
self-service features with the human touch of a teller, in April 2013. The
bank is installing these advanced ATMs in banking centers, drive-up and
remote locations, offering video links to remote BofA call center staff during
extended hours.
Services offered by teller assist ATMs include:
• Receive cash withdrawals in various denominations
($1, $5, $20 and $100).
• Cash checks and receive exact change.
• Deposit checks with cash back.
• Make loan or credit card payments.
• Access with a U.S. government-issued photo ID if ATM/debit
card isn’t available.
• Receive available balances for BofA accounts.
• Print mini or full statements for checking and savings accounts.
As of July 2014, Teller Assist ATMs had been installed in eight markets,
including Atlanta, Boston, Charlotte and Metro New York/New Jersey. In Q3
2014, BofA will roll out Teller Assist ATMs to six new markets including Los
Angeles, Philadelphia and San Francisco.
“ATM deployers failing to migrate
to Windows XP after April 8, 2014,
run the risk of serious fines for
non-PCI compliance”
— Aravinda Korala, CEO of KAL
26
Branches
BofA opened the first of its new Express Banking Centers in Manhattan in
August 2013. These centers offer a more flexible schedule than a full-service
branch, while integrating self-service technology including Teller Assist ATMs
and providing on-site associates to help customers with their financial needs.
A full-service BofA banking center is available generally within three miles
from Express Banking centers.
“Associates at Express Banking centers aren’t behind teller stations,” BofA
said. “They’re in the lobby, working with customers to answer questions and
demonstrate how to use all the banking options Bank of America offers.”
Associates can demonstrate specific high-tech features on handheld tablets. They can also tell customers how to download the mobile banking app,
and use a simulator to walk them through how to use new banking options,
such as depositing checks via mobile phone. If customers have additional
questions or need a problem resolved, they can meet with an associate in a
private office.
By the end of 2013, five additional Express Banking Center locations had
opened in Boston, Charlotte and the Metro New York City area. BofA plans
to open a few additional locations in the second half of 2014, which are
scheduled to be in both existing markets and new markets.
In January 2014, Finextra quoted BofA’s CFO Bruce Thompson as saying
its branch banking network could drop below 5,000 by the end of 2014 as
its mobile channels continue to take market share. According to Finextra,
BofA’s branches fell to 5,151 in Q4 2013 from 5,478 a year earlier.
As at June 2014, BofA had 15 million active mobile banking users who access their accounts on a mobile device 165 million times per month.
In May 2014, BofA said it would roll out videoconferencing to 500 branches
across the U.S. using Cisco Telepresence technology to enable customers
to talk to bank product specialists. The rollout follows a two-year trial in 85
branches that saw 10,000 interactions take place over Cisco’s videoconferencing equipment.
BBVA
In March 2014, Spain’s BBVA created a dedicated division to manage the
group’s digital banking services. The Digital Banking division’s priority is to
accelerate the digital transformation of all BBVA’s businesses across all the
27
group’s geographical regions, and develop new digital businesses.
“BBVA is reinventing itself, converting an efficient and profitable analog
bank of the 20th century into a digital house of the 21st century based on
knowledge,” Francisco González, BBVA’s chairman, said. “If they want to
compete with the digital companies disrupting financial business such as
Google, Facebook and Amazon, banks can no longer hide behind regulatory barriers.”
Banks must change rapidly if they don’t want to be ousted by new digital
players, and use their main competitive advantage: information. Banking is
a knowledge-based industry and therein lays its tremendous growth potential, González said.
Because of its central role in BBVA’s digital transformation, Digital Banking is
in charge of all the group’s commercial offerings, its multichannel strategy, its
distribution model, and the design of commercial and operational processes.
Digital Banking is responsible for BBVA’s internal operations, such as
Wizzo, as well as its startup investments through its financial technology
venture capital arm BBVA Ventures, and acquisitions such as U.S. Internetand mobile-only bank Simple, which BBVA bought in February 2014.
Wizzo is a Web mobile app for iOS and Android that allows customers to
send money to each other by using their Wizzo username, email or mobile
phone number. Customers can also use Wizzo to withdraw cash from ATMs
without using cards by entering a code sent to their mobile phone.
BBVA Compass
In May 2014, BBVA Compass named Jeff Dennes as head of the new
Digital Banking division at the Birmingham, Alabama-based subsidiary of
BBVA. Dennes previously led digital innovation efforts at SunTrust Bank
and Huntington Bank.
Since January 2014, BBVA Compass has been testing videoconferencingbased drive-through banking at three Houston locations, where customers
can summon remote tellers via devices with high-definition screens that
double as full-service ATMs.
Customers at the three locations can opt for full-service assistance from a
teller; operate the units in self-service mode like an ATM or select an assisted mode, where the tellers can guide them through their transactions. “BBVA is reinventing itself,
converting an efficient and
profitable analog bank of the
20th century into a digital
house of the 21st century
based on knowledge.”
— Francisco González, BBVA’s chairman
The remote tellers, based in the bank’s call center, are available during
28
business hours and can be summoned at the touch of a button. The tellers
also can identify customers as account holders without the use of ATM or
debit cards by verifying the customer’s information.
BBVA is developing a high-tech prototype branch in San Antonio, Texas,
which incorporates touchscreens, self-service kiosks, video links to remote
bankers and futuristic “pods” for meetings with clients.
ABIL
In Spain, BBVA has been rolling out multifunction ABIL ATMs that it designed with Wincor Nixdorf based on observations of how people behaved
at ATMs in BBVA branches in Spain, Mexico and the U.S.
By the end of 2013, 100 ABIL ATMs had been installed in Spain. The ATMs
offer several new functions compared with traditional ATMs, including:
• Account access using electronic IDs and passwords from bbva.es.
• Ability to complete NFC transactions with contactless cards.
• Account statements printed in DIN A4 format.
In addition, ABIL ATMs feature a large touchscreen and an intuitive user
interface. BBVA intends to gradually establish this new self-service terminal
as its standard ATM.
Nationwide Building Society
The U.K.’s Nationwide Building Society is rolling out in-branch video links
that let customers talk to off-site mortgage consultants. By April 2014, the
Nationwide Now project had reached around 60 branches, with more to
come, Finextra reports.
BBVA Group key worldwide data
3.31.14
%+ OR -
3.31.13
12.31.13
ATMs
20,864 +3.2 20,21920,415
Branches 7,441 -4.5 7,7957,420
Employees
109.079 -4.5
114,245109,305
Source: BBVA
29
Instead of killing off traditional branches, digital technology could breathe new
life into them, Nationwide’s chief executive Graham Beale told Finextra.
Beale expects that in the future customers will use Nationwide’s video
service from their own homes via tablets and laptops. But meanwhile, the
technology is helping to keep branches alive, as videoconferencing is more
economically viable for remote branches with low customer numbers than
deploying full-time mortgage consultants, he told Finextra.
“As part of its commitment to innovate and give customers a variety of ways
to access their money, Nationwide has invested heavily in its ATM network,” Dean Spencer, program leader at Nationwide, told ATM Marketplace.
“We’ve introduced a popular ‘favorites’ tool which enables customers to access their most common ATM transactions quicker and faster. Also, nearly
1,000 new ATMs have been deployed in our network, all of which have
state-of-the-art touchscreen and security technology.”
Nationwide is looking at several ways to continue to innovate in its ATM network, including videoconferencing, cardless payments and mobile interactions, Spencer said.
In March 2014, Nationwide launched @asknationwide, becoming the first
U.K. branch-based FI to offer its customers 24/7 Twitter coverage. @asknationwide answers customers’ questions, as well as providing them with
customer service information and support, any time of day or night.
Royal Bank of Scotland
In June 2014, Royal Bank of Scotland and its National Westminster Bank
subsidiary announced plans to spend £1 billion ($1.71 billion) over three
years to rebuild their consumer and small business banking operations,
with investment in digital channels as the main focus.
Customer service improvements planned by the RBS Group include:
• Mobile banking that allows customers to view and amend regular payments on mobile devices as well as online.
• Online banking that is more intuitive and allows content to be tailored to
the individual.
• Improvements to more than 400 branches, including the addition of
iPads for online banking access by customers and Wi-Fi that lets them
use their own devices in-branch.
30
• Almost 100 new ATM locations across the U.K. to increase cash access, and almost 600 more cash and deposit machines (CDMs) in
branches to accept checks, cash and coins.
• Improved systems will allow staff to see all the interactions a customer
has with RBS, to better know and advise them.
The investment is driven by a dramatic change in customer behavior, RBS
said, which includes a 200 percent increase in customer use of online and
mobile technology.
Les Mattheson, RBS’s CEO of Personal and Business Banking, said in an
investor presentation that 40 percent of the bank’s transactions now go
through its mobile channel.
“In our branch network, the number of transactions fell by 30 percent between 2010 and 2013, and we expect that trend to continue,” he said.
Customer recommendations
“We’re working hard to ensure we offer informed product recommendations
to customers,” Mattheson said. “What that means is using the data that we
hold across the range of products and relationships we have with customers to understand what it is they really need and when they might need it.”
Mattheson gave the example that, if a customer contacts the bank, whether
it’s through a branch, a landline call or a mobile phone, representatives will
be able to talk to them about a particular service need or a product need
based on the data collected about the customer’s habits and behaviors.
“Collecting customer data tells us we should be talking to them about.
We’ve been making investments in this area over the last four years and
have a large customer database that helps us know and understand what it
is customers need, sometimes before they do,” he said.
Mobile ATM
RBS and NatWest’s Get Cash cardless ATM withdrawal service uses a
smartphone app to generate a one-time six-digit PIN that is sent to the
customer’s phone. The customer enters this code into one of the banking
group’s ATMs and CDMs to withdraw cash.
According to RBS, more than 120,000 Get Cash transactions occur each
month in the U.K.
31
“Get Cash is intended as an emergency cash withdrawal service for people
who have left home without their cards, and has proved very successful,”
said Retail Banking Consulting Group’s Martin.
RBS offers a service that allows customers to upload their ID documents
such as drivers’ licenses for checking account opening by smartphone.
More than 1,300 IDs uploaded via smartphone are verified by RBS each
month for account-opening purposes.
St. George Bank
In May 2014, Australia’s St. George Bank launched a trial of iBeacon
technology in its branches, sending personalized information to customers’
iPhones when they enter a branch.
“Our customers’ needs are
rapidly changing. They want
to bank day-to-day in the most
convenient ways available.
We must respond to their needs
and continue to improve on
the service we offer both online
and on mobile.”
— Les Matheson, CEO of Personal and Business
Banking at Royal Bank of Scotland
RBS and NatWest have:
• 6 million active online customers.
• 3 million active mobile customers.
• 280 million digital transactions processed per annum.
• 3,700 ATMs.
• 850 cash and deposit machines.
• £25 billion ($42.86 billion) cash withdrawals from
ATMs/CDMs in 2013.
• 10 personal banking call centers.
• 3,300 U.K.-based personal banking call center staff,
excluding Web chat.
• 30 million assisted, telephone transactions per annum,
excluding IVR.
• 2,000 branches.
• 16,300 personal and business banking staff.
• £62 billion ($106.29 billion) cash and coin transactions in
branches per annum, including deposits and withdrawals
over the counter, through CDMs and Business Quick
Deposit cash deposits.
Source: Royal Bank of Scotland. These figures are for RBS and NatWest’s mainland U.K. business and exclude Ulster Bank.
32
iBeacons use Bluetooth low energy-based proximity sensing to communicate with Apple iOS-based devices.
St. George has installed iBeacons in three branches in Sydney, enabling
bank-owned iPads to send welcome messages and tailored information directly to customers’ iPhones. Recipients can reply to the message or cancel
the interaction.
St. George said the trial aims to obtain customer feedback to ensure iBeacon technology “genuinely meets their needs” and improves their banking
experience. Once the trial is completed, St. George will plan how to roll out
iBeacons across its branch network.
George Frazis, St. George Banking Group’s CEO, said the launch of the
new technology forms part of an increased focus on delivering an innovative and customer-centric in-branch experience.
“The future of business will be in the ability to anticipate customers’ needs,
understand what matters to them and act on that knowledge to surprise and
delight them,” he said.
Frazis said the investment in iBeacon will help the bank achieve that — and it
has the potential to dramatically change the service experience in Australian
banking. The iBeacon trial forms part of a broader investment in St. George’s
retail branches that will see more digital technology and increased staff expertise to make banking simpler, easier and faster for customers, he said.
Wells Fargo
In April 2013, Wells Fargo announced a new branch concept, the neighborhood bank format.
“The concept is designed to deliver the on-site banking experience Wells
Fargo customers expect, but in a smaller format allowing the company to
offer store locations with personalized service, in settings not suitable for its
larger stores,” the bank said.
The new store format is 1,000 square feet and offers paperless, secure
workflow as well as wireless technology that helps staff provide faster
service, and new large-screen ATMs. The first store using the new design
opened in Washington D.C.’s NoMa neighborhood in April 2013. A traditional Wells Fargo branch’s size is 3,000–4,000 square feet.
33
“With this new store concept, we’ll be able to offer person-to-person sales
and service along with leading banking technology in settings that previously would have discouraged us from building a store,” said Jonathan Velline,
head of ATM banking and store strategy at Wells Fargo. “Stores are central
to our strategy of providing excellent service and meeting our customers’
financial needs.”
Velline said that, in designing the new store format, Wells Fargo paid attention to creating areas within the smaller layout where team members and
customers can conduct business and have important financial conversations, including private meetings.
The new store design offers technology found in traditional Wells Fargo stores, such as ATM software that anticipates a customer’s preferred
transactions, image deposits, instant issue debit cards and email and text
receipts. It also features wireless tablets that team members use to serve
customers and sell products to them.
Each neighborhood store provides a free wireless hotspot for customers to
use. After hours, the store transitions into a smaller lobby format, providing
customers with 24/7 access to several ATMs that dispense $1, $5 and $100
bills in addition to the $20 bills a typical ATM offers.
In February 2013, Wells Fargo started rolling out an ATM interface that offers
personalization features. Highlights include “favorites” that appear in the color
green based on the customer’s ATM usage, as well as customized screens
based on the customer’s preferences. A “Balance Dashboard” features balances at-a-glance, if the customer chooses, for their most used accounts.
ATM Cash Tracker, a tool to help customers manage their finances, now
automatically appears on the main Wells Fargo ATM screen. This feature
allows customers to visually track their monthly Wells Fargo ATM withdrawals. Customers can also set a monthly withdrawal target and can view
details about how much they withdrew the prior month and their average
over the past 12 months. 2014 ATM SOFTWARE TRENDS & ANALYSIS
34
CHA PTER 4
Interviews with innovative banks
For the Guide, ATM Marketplace conducted in-depth interviews with executives from 15 innovative banks in Europe and the U.S. and from two U.S.
credit union-owned ATM networks.
BANK
BRANCH
TRANSFORMATION
PROGRAM
BRANCH OF
THE FUTURE
Alfa Bank
Yes
Yes
Bank of Ireland
Yes
Yes
Banco Sabadell
Yes
No
BBVA (Spain)
Yes
Yes
BBVA Compass (U.S.)
Yes
Yes
CaixaBank YesYes
Chase
YesNo
Yes
No
CommerzbankYes Yes
CU24
NoNo
Erste Group
Yes
HSBC Bank USA
Yes
Yes
Poste Italian/BancoPosta Under development
Yes
Will launch in 2015.
Yes
Under development
SunTrust Bank
Yes
UBS
YesNo
UniCredit
YesYes
Yes
35
The majority of the banks interviewed have a branch transformation program
and a branch of the future.transactions and apply for products.
Alfa Bank
Moscow-based Alfa Bank’s ATM network includes 3,100 ATMs that it owns
and 12,000 ATMs owned by its partner banks.
“The role of ATMs in our branches will become more important in the next
few years because of the opportunity to add new functions and focus on
cost effectiveness,” said Maxim Dareshin, head of Alfa Bank’s self-service
systems development department.
For Dareshin, it is important for banks to offer the ability to videoconference
with bank customer service staff or subject experts at ATMs and to offer cardless ATM transactions using mobile devices.
“The benefit of ATM-mobile integration will be faster transaction times and
new user interface opportunities,” Dareshin said. “But integrating ATMs with
smartphones will be very challenging.”
ATM-mobile integration services currently offered by Alfa Bank comprise:
• Managing ATM or debit card accounts from mobile devices.
• Locating ATMs using mobile devices.
• Offering a real-time view on a mobile device of services
on the selected ATM.
In addition, Alfa Bank customers can use their smartphones as an authentication method for logging into Internet banking. Although Alfa Bank offers
mobile P2P transfer services, it doesn’t allow recipients of mobile transfers to
withdraw cash from ATMs.
Within the next two to three years, Alfa Bank plans to offer cardless ATM
transactions involving NFC-enabled mobile devices and cardless transactions using one-time authentication codes.
Dareshin said that personal contact is still important between bank staff and
customers who use self-service technology.
“The benefit of ATM-mobile
integration will be faster
transaction times and new user
interface opportunities.”
— Maxim Dareshin, head of Alfa Bank’s selfservice systems development department
“Many people still need to be helped while using self-service devices, or they
have additional questions,” he said. “For example, a customer knows how
to repay his loan, but he’s forgotten the amount he needs to pay. We plan to
offer videoconferencing with customer service staff or product experts at our
36
ATMs and self-service banking terminals in the next two to three years.”
Alfa Bank provides bank-owned iPads for use by customers in its branches
for carrying out transactions, looking up products or making appointments
with staff.
Banco Sabadell
“We see in-branch ATMs evolving to new models that enable customers to
carry out self-service transactions that are currently performed by branch
staff,” said Christian Raset, director of management and design of Sabadell,
Spain-based Banco Sabadell’s digital platforms. “We also think ATMs must
become integrated with mobile services, such as cardless NFC transactions
and pre-staging ATM withdrawals from cellphones.”
Raset said the mobile channel will be the most important channel for expanding Sabadell’s relationship with its clients over the next few years. “Mobile will
also be key to increasing the services offered by our ATMs,” he said.
For Sabadell, multichannel integration is a priority.
“Our plan for the next three years has a clear focus on the digital transformation of the bank and of the services we offer our clients,” Raset said. “Enabling our clients to carry out transactions on multiple channels will lead to
greater customer satisfaction and a closer relationship with Sabadell.”
In 2012, Sabadell launched its Instant Money cardless cash withdrawal
service, which allows customers to withdraw cash from its ATMs using a onetime PIN sent to their mobile phones.
“Spanish banks are among the most advanced in Europe in terms of the
services they offer at their ATMs,” said Retail Banking Consulting Group’s
Martin. “Sabadell has seen huge adoption of its Instant Money Service.”
Raset said that in the next few years Sabadell will carry out several pilots
integrating its different channels such as mobile and ATMs.
“We plan to offer NFC cardless ATM withdrawals and QR code-based mobile
ATM withdrawals, and will offer customers a real-time view on their cellphones of services offered on our ATMs,” he said. “We are currently carrying
out pilots of remote customer service applications such as videoconferencing, and we plan to provide branch staff with tablets so they can present
product offers to clients.”
“Enabling our clients to
carry out transactions
on multiple channels will
lead to greater customer
satisfaction and a closer
relationship with Sabadell.”
— Christian Raset, director of management
and design of Sabadell
37
Bank of Ireland
“Over the next few years, we see our branches evolving from a staff-assisted
service model to customer self-service, particularly for cash and deposit
services,” said Garvan Callan, head of Direct Channel Banking at Dublin,
Ireland-based Bank of Ireland. “We also want to reduce the cost of cash handling in our branch network through local cash recycling. Our plan is to train
our staff to direct and guide customers through self-service options at ATMs,
and we will also be deploying enhanced product offers and product crossselling opportunities through ATMs.”
Videoconferencing at ATMs, ATM user-interface personalization and cardless
ATM transactions are among the enhanced customer service options that BoI
is evaluating.
“We see mobile devices as being core to our omnichannel strategy,” Callan
said. “Integrating our mobile and ATM channels will enable us to offer a consistent user experience and integrated product promotion across all channels
and touch points, contributing to our strategic objective to increase product
sales through our digital channels.”
BBVA
“ATMs will have two important roles in the future,” said Manuel Crespo,
Madrid, Spain-based BBVA’s head of physical channels technology. “Firstly,
they will absorb the majority of low-value transactions, allowing staff to perform higher-value tasks for customers. Secondly, ATMs will serve as the link
between digital and physical banking channels.”
Crespo believes it will be important to offer videoconferencing at ATMs, personalization of ATM interfaces from mobile devices, cardless ATM transactions, cash recycling at ATMs and ATM access via biometrics.
“Biometrics will provide an alternative to card and PIN-based transactions,
allowing non-card customers to access the ATM network,” he said.
For Crespo, the best cross-channel strategy is to offer the same user
experience across all channels. Processes must be designed and implemented in the same way, as opposed to having different processes for each
channel. This will allow customers to jump seamlessly from one channel to
another, and initiate transactions on a mobile device which they complete
on another channel.
“Biometrics will provide
an alternative to card and
PIN-based transactions,
allowing non-card
customers to access the
ATM network.”
— Manuel Crespo, BBVA’s head of physical
channels technology
38
“Since mobile devices play such an important role in our lives, they should be
considered as the main method for authenticating payments and customer
service requests,” he said.
BBVA’s ATMs offer the following facilities:
• Customizable menus.
• Personalized product advertising and offers.
• The ability to set up alerts based on specific rules.
Currently, BBVA offers the following mobile integration services at its ATMs:
• Cardless ATM transactions involving NFC-enabled mobile devices.
• Cardless ATM transactions using a one-time authentication code.
• Locating the nearest ATM using mobile devices.
• Withdrawals of cash received via mobile P2P fund transfers.
BBVA plans to roll out cardless ATM transactions from mobile wallets using
QR codes by the end of 2014, and it is developing the following services:
• Allowing a customer to use their mobile device to customize their own
ATM menu.
• Offering a real-time view on a mobile device of services on the
selected ATM.
Based on its U.S. subsidiary BBVA Compass’ drive-thru ATM videoconferencing services, BBVA is working on a proof of concept for videoconferencing at
its Spanish ATMs, Crespo said.
Following the 2013 launch of assisted self-service banking terminals at its
flagship branch of the future in Spain, BBVA plans to roll out assisted selfservice technology in its other branches.
BBVA Compass
“Offering videoconferencing technology is essential for connecting ATM users
with tellers when assistance is needed,” said Jill Hunt, director of channel
operations and customer advocacy at BBVA Compass. “Doing so will also
allow bank teams to answer product questions and potentially generate new
accounts.”
ATM-mobile integration can help strengthen customer experiences, said
Hunt. “For example, customers who’ve forgotten their ATM/debit cards could
39
potentially use a mobile device to initiate a transaction to be completed at an
ATM,” she said. “On-the-go customers can also use a mobile app to locate
nearby BBVA Compass ATMs.”
Within the next two to three years, BBVA Compass plans to offer:
• Cardless ATM transactions from mobile wallets using QR codes.
• Managing ATM/debit card accounts from mobile devices.
Multichannel integration is a major priority for BBVA Compass as customers
expect to have seamless experiences, regardless of the channel they use,
Hunt said. In addition, multichannel integration opens the door to new ways
of banking.
CaixaBank
Barcelona, Spain-based CaixaBank has deployed more than 1,000 Punt
Groc (i.e., yellow point) advanced multifunction ATMs. Its total ATM fleet
consists of 10,000 ATMs.
Punt Groc ATMs offer cash withdrawals via contactless cards and have a
double screen design enabling products and services to be advertised on
one screen while the other is used for transactions. More than 200 different transaction types are available at Punt Groc ATMs, including pre-agreed
loans, virtual cards and withdrawing funds received via mobile P2P transfers.
CaixaBank customers can personalize the Punt Groc ATM initial services
menu and view personalized product offers. The “frequent operations” option
showing a customer’s most-used transactions can be configured via ATMs or
through CaixaBank’s online banking channel.
Low added value transactions
“ATMs must become the basis for cash management in branches,” said a
CaixaBank spokesperson. “Incorporating a cash recycling function in our
ATMs during 2014 is a step in this direction. In addition, ATMs need to take
over most of the low added-value transactions that are still carried out at
branches, while also offering the sale of simple financial products.”
Mobile is a central part of CaixaBank’s multichannel strategy due to the ubiquity of mobile devices among its customers.
40
For CaixaBank, it is important to offer the following technologies at ATMs:
• Allowing customers to manage their ATM interaction and personalize
their ATM interface from mobile devices.
• Offering cardless ATM transactions using mobile devices.
• Biometric authentication.
CaixaBank currently offers the following ATM-mobile integration services:
• Offering a real-time view on a mobile device of services on the
selected ATM.
“We’re currently developing our cross-channel integration strategy so that
any transaction can be prepared and/or launched through any channel and
completed in any other,” the spokesperson said. “However, we don’t view the
ATM as the most convenient channel for videoconferencing.”
In November 2013, CaixaBank opened a branch of the future in Barcelona
that is designed to resemble an Apple store and offers advanced ATMs and
tablets. The branch, called A Diagonal, has a 1,000 square metre surface
area, with no physical barriers between customers and employees.
Chase
Chase, the U.S. retail banking arm of JPMorgan Chase, is re-envisioning its
branch model along the lines of the Apple stores.
Chase says its new branches are designed to meet the needs of today’s
customer: • More self-service technology up front. • Employees moving around — often with a tablet in hand — to greet
customers, help with a quick need or bring a customer to a high-top table
with a computer for further assistance.
“While our customers
are rapidly adopting our
self-service technologies,
branches are still a critical
part of their banking
experience.”
— Michael Fusco, Chase spokesperson
• Fewer teller booths with shorter lines for those who still need the assistance of a teller. 2014 ATM SOFTWARE TRENDS & ANALYSIS
41
• Significantly more private offices for customers needing a specialist in
small business, mortgage or retirement planning.
• Unlike a legacy Chase branch staffed with 60 percent tellers and 40
percent advisory, its new retrofitted branches — rich with self-service
technology — have 60 percent advisory staff and 40 percent tellers. “While our customers are rapidly adopting our self-service technologies,
branches are still a critical part of their banking experience,” Michael Fusco,
Chase spokesperson, said. “About 70 percent of Chase customers visit a
branch regularly each quarter, which is consistent across age and income
demographics. But, rather than coming to a branch for everyday banking
needs, customers now come for advice, assistance or for help planning for
their future.”
Chase has deployed express banking kiosks (EBKs), self-service in-branch
technology that gives customers quick access to most typical teller transactions, without having to wait on a teller line. EBK features include:
• Large portrait touchscreen monitor that looks like a giant iPad.
• In addition to all typical ATM functions, EBKs allow customers to pay
credit card bills, and load prepaid cards.
• Ability to choose a custom withdrawal amount, rather than in multiples
of $20s like most standard ATMs. For example, customers can withdraw
$48, and say they want it in one $20, four $5s and eight $1s.
• Ability to recycle cash (unlike most traditional ATMs).
• Safety-privacy film on screen and PIN pad cover to safeguard privacy.
• During daytime hours (for those inside a branch), EBKs provide more
services for which customers would otherwise need to wait in line at a
teller counter, such as:
• Higher daily withdrawal limits than standard ATMs.
• Higher immediate availability for deposited Chase checks.
As of April 2014, more than 400 Chase branches had EBKs, with more than
1,100 units deployed in total. Chase expects to have EBKs in nearly 600
branches by the end of 2014, totaling more than 1,700 units. “The benefits I see from
integrating credit union
mobile and ATM channels
are greater convenience
and improved ATM
experience.”
at Co-op Financial Services
“Our express banking kiosks give customers the choice of full service or assisted service when transacting in branches,” Fusco said. “It’s important to
42
have tellers available to guide and support customers as they get used to this
new technology.”
Chase sees it as important to provide a consistent and connected experience for its customers across all channels. The ATM-mobile integration
services offered by Chase consist of: locating the nearest ATM using a
mobile device, and offering a real-time view on a mobile device of services
on the selected ATM.
Although Chase doesn’t offer mobile ATM withdrawals, it provides a service
enabling consumers to perform mobile-based P2P fund transfers.
Chase doesn’t currently offer its customers videoconferencing links to staff
from its ATMs and self-service terminals, but it is piloting tablets for customer
use in a limited number of locations.
“We offer a facility for customers to personalize the user interface and customer experience at our ATMs and on other self-service channels such as
smartphones,” Fusco said. “Our ATMs allow customers to select the amount
they normally withdraw, and state their preference as to whether they always
want printed receipts, never want receipts or always want to be prompted for
receipts. Also, customers can set up alerts based on specific rules.”
“The benefits I see from
integrating credit union
mobile and ATM channels
are greater convenience
and improved ATM
experience.”
at Co-op Financial Services
“The ATM is a mature but evolving technology that remains a critical touch
point between credit unions and their members,” said Terry Pierce, senior
product manager at Rancho Cucamonga, California-based credit union ATM
network operator Co-op Financial Services.
According to Pierce, U.S. credit unions are currently renovating their ATM
channel strategy, with ATMs playing an increasingly important role as credit
unions improve branch efficiencies, cut operating costs and increase revenues. As branch numbers decline, there will be greater demand for ATMs,
particularly multifunction ATMs offering a wide range of services traditionally
carried out at branches.
“Technology innovations have paved the way to expanded self-service
capabilities using advanced functionalities, integration of mobile technology,
two-way video teller and targeted marketing, while improving the member
experience,” she said.
For Pierce, it is important for credit unions to offer members the ability to
videoconference with staff at ATMs; allow members to manage their ATM
43
interaction and personalize their ATM interface from mobile devices; offer
cardless ATM transactions using mobile devices and offer assisted selfservice in branches.
“Overall improvement of ATM functionality, member convenience and experience is key,” Pierce said.
Credit union cross-channel strategies need to be member-centric and improve the overall customer experience, she said. This includes offering an improved user interface, knowing who your members are, and providing them
with real-time, relevant products and services via whichever channel they
choose, whether it’s ATMs, online, mobile, in-branch or video.
“Consumers are embracing mobile technology very rapidly and expect it to
be integrated into banking and payments channels,” Pierce said.
While credit unions transform and optimize their branches with self-service
technology and migrate teller transactions to self-service transactions, they
must retain the personal contact between their staff and members who use
self-service technology, Pierce said. Member service representatives continue to play a key role in attracting new members, and providing more sales
and financial advice to existing and new members.
Commerzbank
For Markus Keck, head of self-service banking at Commerzbank’s Personal
Customers business segment, allowing customers to manage their ATM interaction and personalize their ATM interface from mobile devices, and offering cardless ATM transactions via mobile devices, are “definitely” important.
Commerzbank plans to offer a facility for customers to personalize the user
interface and customer experience at its ATMs in the next two to three years.
Keck said it is a high priority for Frankfurt, Germany-based Commerzbank to
invest in multichannel banking integration.
“It’s important to integrate mobile devices with other channels, as our customers are asking for integration,” he said. “In addition, mobile devices could be
used for authenticating access to other channels.”
As at July 2014, Commerzbank doesn’t have any ATM-mobile integration
initiatives, although it does offer videoconferencing with bank staff from its
ATMs. The ATM-mobile integration services it plans to offer in the next two to
three years are:
44
• Cardless ATM transactions from mobile wallets using QR codes.
Keck said Commerzbank also plans to offer assisted self-service in
its branches.
“We already provide bank-owned iPads for use by customers in our
branches,” he said.
CU24
“ATMs will continue to be an integral part of a credit union’s distribution system,” said Mansel Guerry, president and CEO of Tallahassee, Florida-based
credit union ATM network operator CU24. “We will likely see ATMs develop
into even more comprehensive service channels, delivering additional information and services, and deployed in more targeted ways to supplement
branch facilities.”
Guerry said that, for U.S. credit unions, offering the ability to videoconference with member service staff or subject experts at ATMs is increasingly
important in order to support specific geographic targets and member service
strategies.
“Allowing customers to manage their ATM interaction and personalize their
ATM interface from a mobile device, and offering cardless ATM transactions
using mobile devices are moderately important, to be developed over time,”
Guerry said. “Offering assisted self-service in branches is of increasing importance, especially for younger credit union members.”
Guerry said the best strategies for cross-channel banking are to offer ease
of use, consistent interfaces and presentation, expansion of services across
channels so credit union members can select the way they want to do business and support for “anytime, anywhere” service approaches.
For U.S. credit unions, the mobile channel will be increasingly important, but
growth may not be as quick or aggressive as many believe, Guerry said.
“Although mobile use spans generations, expanded use of mobile applications is most quickly adopted by younger consumers,” he said. “The migra-
45
tion, like most payments innovations, will take place over a long period,
and overlap current technologies.”
Erste Group Bank/Ceska Sporitelna
Austria’s Erste Group Bank has subsidiaries in seven Central and Eastern
European countries, including Czech Republic-based Ceska Sporitelna.
“Erste Group is developing a number of multichannel integration services
including videoconferencing with bank staff at its ATMs; allowing customers
to manage their ATM interaction and personalize their ATM interface from
mobile devices; cardless ATM transactions using QR codes and one-time
codes on mobile devices and assisted self-service in branches,” said Jiri
Charousek, Ceska Sporitelna’s head of applications support and manager
of new ATM software at Erste Group.
“Offering assisted selfservice in branches is of
increasing importance,
especially for younger
credit union members.”
— Mansel Guerry, president and CEO
of credit union ATM network operator CU24
Charousek said that investing in multichannel integration is the bank’s highest priority.
Ceska Sporitelna is piloting videoconferencing at its ATMs using video technology supplied by NCR and Huawei.
“Once we’ve completed the proof of concept pilot, we will decide which vendor to use for Ceska’s videoconferencing service,” Charousek said. “We’re
also evaluating how to use assisted self-service technology in our branches.”
HSBC Bank USA
HSBC Bank USA sees it as important to allow customers to manage their
ATM interaction and personalize their ATM interface from mobile devices;
to offer cardless ATM transactions using mobile devices; and to provide
assisted self-service in branches.
Currently, HSBC Bank USA doesn’t offer any ATM-mobile integration services, but it envisages rolling out cardless ATM transactions by 2016.
Mary Kate Loftus, senior manager, ATM/kiosk channels, Direct Team at
HSBC Bank USA, said it is likely that the bank will offer cardless ATM transactions using one-time authentication codes. It may also offer cardless ATM
transactions involving NFC-enabled mobile devices or from mobile wallets
using QR codes, and allow customers to use their mobile devices to customize their own ATM menu.
46
“We see integrating Internet banking and CSR (customer service representative) functionality through self-service devices in branches as the
best strategy for cross-channel banking,” said Loftus. “Ultimately, we want
a seamless journey between customer self-service in the branch, online
banking and ATMs.”
HSBC Bank USA currently doesn’t regard it as important to offer videoconferencing at ATMs. “We see a need to create a feeling of personalized interaction with our customers, but not through videoconferencing,” Loftus said.
“Instead, we are focusing on sending messages and responding to customers in a way that reflects our understanding of them as individuals.”
Loftus said HSBC is investing in streamlining IT support globally. “Doing so
will allow us to provide a multi-channel integrated experience in 2015 and
2016,” she said. “The benefits we see from integrating our mobile and ATM
channels are authentication, security, reduced fraud, and improved customer experience.”
“We aim to increase the functionality of our ATMs and their sales potential,
so they offer almost all the transactions our tellers provide,” said Peter Caiazzi, head of direct channels at Turin, Italy-based Intesa Sanpaolo Bank.
Caiazzi said the bank wants its customers to be able to manage their cards
and activate pre-approved loans at ATMs. However, the bank won’t offer
the highest value-added transactions, such as mortgages at ATMs, because it provides staff consulting for such products.
“Human contact is still very important in multichannel banking,” he said.
According to Caiazzi, currently there is little interest among Italian banking customers in videoconferencing at ATMs. We aren’t looking at offering videoconferencing with subject specialists within the next two to three
years,” he said. “In fact, we’re still working on directing our customers to
self-service channels for low-value transactions.”
Intesa ATMs offer a range of services, such as wire transfers, public transit
payments and TV subscriptions. Customers can set up a list of bill payment
beneficiaries using mobile and online channels and activate these bill payments at Intesa’s ATMs.
Technologies seen as important
for Intesa’s ATM channel, in order
of priority:
• Allowing customers to manage their ATM
interaction and personalize their ATM
interface from mobile devices, especially
for common services such
as “Fast Cash”;
• Offering cardless ATM transactions using
mobile devices;
• Offering the ability to videoconference with
bank staff at ATMs, perhaps by 2018;
• Offering assisted self-service in branches,
where staff use tablets to help customers
at ATMs, perhaps by 2019.
47
Intesa plans to add additional services at its ATMs such as selling tickets for
cultural events that it sponsors, as well as personalization of its customers’
ATM experience.
“We want to let customers select the first page of their ATM screen using
their mobile device,” Caiazzi said. “They could include two or three favorite
accounts that they make withdrawals from. Our ATM user interface personalization service will be deployed in the next two to three years.”
As an alternative for customers who don’t want to personalize their ATM interface, the bank will provide profile interfaces based on what segments their
customers belong to as well as their geographical location. The profile interfaces will be the default for customers who don’t personalize their interfaces.
Currently, Intesa’s ATMs offer personalized product advertising and offers,
as well as the ability to set up alerts based on specific rules.
Intesa expects to offer cardless ATM transactions within the next two to
three years and mobile ATM services to noncustomers, including people
receiving mobile P2P transfers, for example.
“If you have dinner with someone and they pay, you could send them an
SMS code for the money you owe them. They would take this code to the
ATM outside the restaurant to withdraw the money,” Caiazzi said.
Intesa began its multichannel integration project in January 2014. The goal
is that a customer should be able to begin an application or transaction on
one channel and switch at any time to another channel without losing the
work they’ve already done. Over the next three years, the bank plans to
invest €75 million ($101 million) in multichannel banking.
As part of its branch transformation program, Intesa deploys greeters who
welcome customers when they enter its branches and ask what banking
tasks they want to do.
“The greeters can help the customers obtain new bank cards or pay their
taxes at ATMs,” Caiazzi said.
Intesa Sanpaolo Bank branches
• 3,891 branches serving the bank’s
10.9 million retail customers;
• 307 branches for its 130,000 enterprise
and mid-corporate customers;
• 140 branches for its 78,000 private
banking customers.
Source: Intesa Sanpaolo Bank.
Intesa offers assisted self-service terminals in most branches where dedicated staff are assigned to help customers perform transactions at these
terminals. However, the employees don’t use tablets as part of this function.
48
Poste Italiane/BancoPosta
Poste Italiane, the Italian postal service provider, owns BancoPosta and
operates 7,162 ATMs in Italy.
“The main new transactional service we’re looking at offering at our ATMs is
reloading of public transit prepaid accounts,” said Antonio Bracaglia, head of
e-payments development at Rome-based Poste Italiane.
According to Bracaglia, the plan is to offer customers multifunction debit
or prepaid cards that will provide prepaid transit reloading at ATMs. Poste
Italiane already offers airtime top-up at its ATMs for customers’ Poste Italiane
mobile phones, along with bill payments and reloading of prepaid debit cards
issued by Poste Italiane.
Poste Italiane is talking to Auriga about delivering one-to-one marketing at its
ATMs using Auriga’s WWS platform.
Poste Italiane/BancoPosta key facts:
• 13,000 post offices.
“We want personalized marketing at our ATMs, but this requires a strong
CRM system at the back-end,” Bracaglia said.
• 7,162 Postamat ATMs.
Multichannel integration is very important for Poste Italiane. It wants to implement Auriga’s technology that enables banks to use mobile devices as the
authentication gateway to other channels, Bracaglia said.
• 2 million mobile banking users.
“We plan to invest heavily in multichannel integration for our ATMs and
branches. In addition, we’re investigating offering ATM withdrawals using
three different methods: NFC, QR codes and one-time PINs that are sent to
mobiles,” he said.
SunTrust Bank
• 7 million Postamat cards.
• 12 million Postepay prepaid cards.
• 11 million Postamat debit cards.
• 6 million BancoPosta accounts.
• €319 billion ($431.5 billion) in
postal savings.
Source: Poste Italiane
In May 2014, SunTrust Bank launched an “innovation branch” that will serve
as a testing ground for new concepts that may eventually be adopted at the
Atlanta, Georgia-based bank’s other branches, ATM Marketplace reports.
The “innovation branch,” located in Atlanta, offers:
• NCR-supplied teller connect ATMs allowing customers to conduct videoconferences with remote tellers.
• A tablet bar that offers clients a secure, convenient way to use SunTrust
mobile, tablet and online banking via guest Wi-Fi.
• An interactive 80-inch Microsoft Surface touchscreen that provides information about SunTrust accounts and services.
49
“ATMs offering the ability to videoconference with bank staff will likely
increase in number, as they offer clients more convenience by allowing the
traditional bank to extend hours and potentially increase the number of available touch points,” said Tom McDermott, senior vice president, retail sales
and channel executive at SunTrust.
McDermott also said assisted self-service will be key, as it will improve the
client experience and adoption rates by providing new functionality.
“Today’s client wants to seamlessly switch between different channels,” he
said. “Presenting a user/brand experience at every touch point that is simple
and device-agnostic is crucial in leading towards that fluid movement between channels.”
McDermott said staff-customer interaction will remain important. As selfservice technology will have varying adoption rates and responses across
different client segments, it’s important to maintain a personal connection
with those clients who prefer the human touch, he said.
Mobile authentication at ATMs is on SunTrust’s radar, but rollout will be three
to five years away.
“The biggest challenge of ATM-mobile integration isn’t hardware,” McDermott
said. “It’s software integration.”
UBS
Roland Hallauer, head of banking products, counters and ATMs at Switzerland’s UBS, said that videoconferencing at ATMs isn’t relevant to the Swiss
market.
“Swiss clients wouldn’t use videoconferencing services due to confidentiality
concerns,” he said. “I also don’t see any relevance in the Swiss market for
services allowing customers to personalize ATM interfaces from mobile devices. But UBS plans to introduce cardless ATM transactions using QR codes
on mobile devices in the next two to three years.”
While UBS is interested in NFC cardless transactions at ATMs, implementation would depend on how fast NFC is adopted by Swiss consumers, Hallauer said.
“ATM-mobile integration
isn’t particularly relevant in
Switzerland.”
— Roland Hallauer, head of banking products,
counters and ATMs at UBS
In Switzerland, ATMs are seen as a commodity channel, offering low-cost
cash-in and cash-out transactions, Hallauer said.
“ATM-mobile integration isn’t particularly relevant in Switzerland,” he said.
50
UniCredit
Mattia Ghidoni, vice president, head of cards client support and fraud
manager at Italy’s UniCredit, sees it as very important to offer cardless ATM
transactions using mobile devices as well as assisted self-service at ATMs
and other self-service terminals.
However, Ghidoni doesn’t see it as useful to offer videoconferencing at ATMs.
Nor does he see it as important to allow customers to manage their ATM
interaction and personalize their ATM interface from mobile devices.
UniCredit offers assisted self-service banking terminals in its branches,
where staff equipped with tablets help customers perform transactions at
the terminals. It also provides bank-owned iPads for use by customers in its
branches for carrying out transactions, looking up products or making appointments with staff.
“For a transitional period, the next five to 10 years, for example, banks will
need to retain the personal contact between their staff and customers who
use self-service technology by offering assisted self-service and videoconferencing,” Ghidoni said. “But videoconferencing should be provided at dedicated self-service terminals, not ATMs.”
UniCredit will roll out a service in 2014 offering cardless ATM withdrawals
based on a mobile app allowing customers to pre-stage transactions on their
mobile device.
For Ghidoni, the main purpose and benefit of mobile-ATM integration is to
enable cardless cash withdrawals.
“I see the customer’s mobile device as the authentication gateway to their accessing other channels such as Internet banking and ATMs,” he said. “But, if
the customer is using their mobile device for noncash transactions, it makes
no sense to integrate the mobile device with ATM functionalities.”
Branch of the future
In February 2014, UniCredit opened a branch of the future in Milan as part
of a project to improve the customer experience at its 1,000 branches. When
they enter the branch, customers are greeted by a manager at a workstation,
which is used to manage lines and appointments with advisers, as well as to
provide immediate help with basic issues.
51
In the waiting area, an Internet-connected touchscreen table, bank-supplied
tablets and free Wi-Fi allow customers to browse the Web and look at
UniCredit products. A bank employee is available to demonstrate online and
mobile banking services on the customers’ own mobile devices and laptops.
Teller and adviser workstations include electronic signature pads, and a
meeting room with videoconferencing equipment is available where customers can talk to remote specialists.
The UniCredit branch of the future’s self-service area, which is accessible 24
hours a day, contains ATMs that memorize the customer’s debit card habits and present the customer with the amounts most frequently withdrawn.
Outside branch hours, customers can access a videoconferencing room that
connects them remotely to a consultant.
52
REFERENCES
ATMIA
www.ATMIA.com
EMV Migration Guide, by Robin Arnfield, Networld Media Group
http://www.networldmediagroup.com/inc/sdetail/8593/17226
EMV, PCI and the ATM Industry, by Robin Arnfield, Networld Media Group
Getting More Money Out of the ATM, by Robin Arnfield, Networld Media Group
Mobile Banking and Payments Security, by Robin Arnfield, Networld Media Group
Mobile Wallets: Moving Beyond Pilots
Mobile Payments Today white paper sponsored by Auriga
http://www.mobilepaymentstoday.com/whitepapers/mobile-wallets-moving-beyond-pilots/
Windows 7 ATM Migration Guide, by Robin Arnfield, Networld Media Group
WWS ATM: A world class ATM management solution,
a Mobile Payments Today white paper sponsored by Auriga
http://www.mobilepaymentstoday.com/whitepapers/wws-atm-a-world-class-atm-management-solution/
Global ATM Market and Forecasts to 2018, by RBR
http://www.rbrlondon.com/reports/global
Trends in Consumer Mobility Report
http://paybefore.com/wp-content/uploads/2014/07/2014_BAC_Trends_in_Consumer_Mobility.pdf
Bank of America
http://newsroom.bankofamerica.com/sites/bankofamerica.newshq.businesswire.com/files/press_kit/
additional/2014_BAC_Trends_in_Consumer_Mobility.pdf
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ABOUT THE SPONSORS
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banking. Auriga has a proven ability to help banks
improve their efficiency and competiveness. For more
information, visit http://www.aurigaspa.com/eng/
ATMmarketplace.com, owned and operated by Louisville, Ky.-based Networld Media Group, is the world’s
largest online provider of information about and for
the ATM industry. The content, which is updated every
business day and read by business and industry professionals throughout the world, is free.
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ATM – Mobile Integration Guide

Transcription

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