Web-based automated teller machines (ATM) offer banks an opportunity to deliver a multi-channel stategy and overcome increasing financial costs associated with ATMs, according to a new report by market intelligence agency IDC.
IDC projects that by 2003 the ATM will surpass the branch as the highest volume US banking channel, with over 13 billion annual transactions. However, as transactions - and the number of ATMs - grow, the research company believes banks will face increasingly difficult challenges, including rising ATM support costs, identifying new revenue streams, and potential new accessibility regulations under the Americans with Disabilities Act.
Ian Rubin, IDC's director of online financial services research, comments: "The availability of Web-enabled ATMs signifies an opportunity to cross-pollinate online banking and ATM services, which can have significant implications on banking products, customer relationship management, and customer acquisition strategies."
He believes all significant channel investments going forward will be scrutinised for leverage across other channels, including Internet, ATM, call centre, and branch. "Banks that are contemplating a multichannel delivery strategy may well find a Web-enabled ATM fleet to be the logical first phase," says Rubin.