A Self-Service Branch Strategy

Forty-five percent of those surveyed for the 15th edition of the ATM & Self-Service Software Trends report said the way they delivered services made them more reliant on ATMs in the past 12 months. Another 34 percent said their reliance on ATMs remained about the same. Just 16 percent said they became less reliant on their ATMs.

In follow-up interviews, respondents cited numerous factors for the ATM’s continued importance, including branch closures, staffing shortages, customer interest in expanded service hours, and new technologies such as contactless and card-free transactions.

Some banks are taking their cues from other industries and moving more interactions to self-service channels. This leaves staff free to handle more complex – and typically more lucrative – transactions. PNC Bank is in the midst of an ambitious project to convert roughly 60 percent of its branches to digital-first banking centers, reports Crain’s Cleveland Business (free subscription required). While staff will be on hand, they will direct customers with basic transactions to self-service machines like ATMs.

A PNC spokesman told Crain’s that staff numbers at converted branches will remain the same, at least initially. But they will assume new roles. “Employees will be less focused on completing transactions and will be more focused on assisting customers with complex financial needs and solutions and providing financial advice and expertise,” the spokesman said.

Interview Insights

INTERVIEW QUESTION: 45% of banks told us that in the last 12 months, the way they deliver services has made them more reliant on their ATMs. Why do you think this is? Has the way you deliver your services made you more or less reliant on your ATMs?

Yes, we are more reliant – not only in the last 12 months, but also in the last years starting with the moment when we have closed the cash desks and continuing with offering different services to our customers at ATMs (e.g., cardless transactions). — Unguroiu Vlad, ING Bank, Romania

Yes, most certainly during periodic COVID spikes, ATMs and self-service in general was the only option for clients when lobbies were required to be closed. Closing on our merger this year, ATMs (and branch locations) are a critical client need and we’ve found our clients vocal about the number of locations and presence in certain geographies. We will soon be embarking on a transaction migration and branch transformation strategy which will include careful examination of in-lobby self-service and ATM locations and transaction support. — Ryan Loesch, Truist Financial Corporation, U.S.

It depends a lot on the point of view of the type of client of each bank. Currently in Mexico the banked population is very low and the digitalized population is even lower. There is a dependency on developing ATM services in order to depressurize branches. However, there is an inflection point where digital banking and ATMs will converge, and I think that is where most banks are moving. — Rodrigo Huys Ordaz, Banorte, Mexico

Post pandemic, there was a significant impact on ATM transactions as people were confined to their homes. This is the time when digital payments gained prominence. However, once people started moving out of their homes for work, we saw an increase in the number of ATM transactions. Also with increased vaccination across the country, ATM transaction volumes have again picked up. Even though the usage of digital modes of payment increased exponentially, ATMs continue to be a part of the payment ecosystem. Our bank focuses on the need and convenience of our customers, and Kotak ATMs are an important channel for servicing them. — Puneet Kapoor, Kotak Mahindra Bank Ltd., India

Yes, the ATM today is a very convenient and efficient channel for providing remote services. Due to the process of digitizing plastic cards and an increase in the number of contactless cash withdrawals (wallet, contactless withdrawal, ApplePay, etc.), the ATM will continue to acquire more and more new functions. — Oleg Semenenko, TBC Bank, Republic of Georgia

Yes, location consolidations, staffing shortages, and the increased consumer pressure for expanded service hours make the ATM the ideal platform to address 24/7/365 accessibility. — Matt Snow, Regions Bank, U.S.

Yes. Many banks sped up cashless (or cashierless) branch strategy and/or reduced number of branches. In such locations, banks and clients are more reliant on ATMs when it comes to cash and other services that ATMs can provide. — David Novotný, Česká spořitelna, Czech Republic