05/08/2024 | News release | Distributed by Public on 05/08/2024 10:25
As long as there have been banks, customers have gone to them to get cash, make deposits and make other transactions. But today, customers' growing appetite for convenience is driving change. While few would want to go without the freedom to visit their bank in person when they choose to, they're doing so less frequently-typically opting for self-service kiosks such as ATMs and Interactive Teller Machine (ITMs), mobile and online transactions.
In fact, some FIs have seen an 88% increase in "branch" opening hours thanks to ATMs and ITMs, with some seeing 30% of deposits being made outside of regular operating hours.
Case in point: 9% of respondents said visiting a branch was their top banking option.
For financial institutions (FIs), this new reality calls for a new kind of balancing act: using technology where it makes sense so you can also afford to provide in-person services when and where customers want them-AND to do all this in such a way that keeps their balance sheet in line and their investors happy.
For many FIs, ITMs, also known as video remote tellers, are an increasingly important tool ATM-like experience but with a live person on a video screen ITMs are making it possible for a customer to talk one-on-one with a real banker from virtually anywhere, almost any time. Some FIs are even offering ITM sessions with a mortgage banker or retirement counselor. (Right. Now. No waiting.)
The ITM is the heart of today's successful branch automation process. Its technology is opening distribution channels and providing a "branch in a box" experience to customers. These advanced terminals can provide the functionality of a branch but can operate from a variety of ultra-convenient locations, including hotel lobbies, shopping malls, hospitals and college campuses.
Three-quarters of FIs already offering video banking have reported improved outcomes, with 97% saying that Net Promoter scores (NPS) for video banking are at least as good, if not better, than other channels. 77% say sale close rates are better or at least equal to other channels. And 90% percent of banking users who have used in-branch video banking say they would be willing to use it again.
The reason: ITMs let consumers perform simple cash transactions or engage in deeper, more personalized banking activities with remote tellers: it gives people choice, access and convenience.
Using an ITM, the customer and teller can communicate in real time, with the teller guiding the customer through the transaction or, in some cases, operating the ATM remotely. It's a convenient way for customers to bank at just about any level. They can connect with remote tellers up to 24 hours a day, seven days a week from any ITM location (if the call center is staffed 24/7).
ATMs are proven, dependable and a cost-effective option for expanding service channels outside of the branch-and inside, too, as next-generation ATM software transforms the ATM into a key asset for branch transformation, enabling banks to migrate more transactions and a richer experience at the ATM. ATMs dispense cash and can offer other basic services:
And customers value these services. But ATMs can't be everything to everyone. Offering your customers compelling choices under an omnichannel umbrella can lead to customer satisfaction at every turn.
For example, when it comes to personal service, ATMs can't compete with in-branch tellers and bankers. There are times customers want to talk in person. Tellers and bankers often guide customers through more complex transactions, such as loan applications and payments, opening accounts or canceling payments or services. And they can look them in the eye, making a personal connection that's hard to measure but deeply valuable in terms of customer loyalty. And while digital banking puts the ability to bank in the palm of the customers' hand, when you need cash, neither a website nor a smartphone app can help you. That's where an ATM really shines.
With equipment like this, the teller or banker can talk with the customer face to face, explain the process of applying for a loan, check their ID and even help them sign any necessary documents, right there on the spot. They can also do things like verify a customer's identity if their credit card is lost or stolen and distribute funds in any denominations of cash and change.
ITMs give customers the convenience of an ATM plus the human experience of talking with someone in person.
Heiwote Tadesse, SVP of member relations for US-based Associated Credit Union, agreed that the ITM has had a positive impact on the customer experience. "We're always looking for new ways to invest in member experience, which is how we began using ITM machines," she said. "At first, we were concerned that using ITMs would lead to a less personal connection with our members, but we're seeing now that members are showing increased satisfaction with this as well. They appreciate being able to conduct transactions without needing a face-to-face conversation."
The ITM experience will be new to many of your customers, so you will want to introduce them carefully to encourage acceptance.
To get the most from this new technology and make sure your rollout process is smooth for employees and customers, you'll want to include the following proven rollout strategies:
The way customers interact with your branch is continuing to evolve. You're probably offering more advisory services than simple transactions. As today's branches enter the next phase of transformation, ITMs are a proven way to offer innovative and convenient technology to customers where and when they need it. By providing ITMs, FIs will be able to offer more personalized services to customers while controlling operational expenses. ITMs are part of the future of banking enabling greater convenience and accessibility, while still allowing FIs to continue to serve as a trusted hub of financial advice.