Building a Better ATM Channel: Who Said it Would Be Easy?
Report Summary
Building a Better ATM Channel: Who Said it Would Be Easy?
While banks’ ATM executives see the importance of updating their ATM networks, thin budgets remain a hurdle.
Boston, MA, September 30, 2009 – A new report from Aite Group describes bank ATM executives' planned strategies for the ATM channel through 2014, as well as challenges and concerns executives have in managing the channel. Based on Aite Group interviews with bank ATM channel executives at 23 of the top 80 U.S. banks, conducted from February to April 2009, the report also provides insight into which vendors surveyed banks are working with to improve the ATM channel. Finally, the report offers prescriptions for vendors seeking to assist banks in building a better and more advanced future ATM channel.
U.S. banks are struggling to rebuild the foundations of outdated ATM channels. Upgrading the technology has proven difficult, as the ATM channel is complex and requires addressing issues pertaining to risk management, fraud, transaction processing, and the accepting and dispensing of both paper and cash. Other challenges include costly technology and thin ATM channel budgets, which are often among the last to gain attention from senior management. Further, bank ATM executives unable to deal with their technology challenges will have major difficulties achieving part of their long-term strategy: creating a differentiated ATM experience through customer personalization. As such, bank ATM executives are taking steps to address these challenges despite budget limitations, including updating their ATM hardware and software.
"ATM executives will face a number of challenges, including funding, in achieving their goals for the ATM channel," says Kate Monahan, analyst with Aite Group and author of this report. "To reach planned ATM channel goals within a five-year period, banks may find that working with vendors is the most cost-effective and least painless way to update ATM hardware and software and add advanced functionalities."
The report mentions vendors involved in various segments of the ATM channel, including ACI, Armored Solutions Inc. (ASI), Brinks, Case & Associates, Computer Associates, Diebold, Dunbar, Elan Financial Services, Fifth Third Processing, First Data Corporation, Garda, Loomis, Metavante, Microsoft, NCR, Pendum, Phoenix Interactive and Visa Debit Processing Service.
This 27-page Impact Note contains 20 figures. Clients of Aite Group's Retail Banking service can download the report.