Customers Like Contactless Transactions

Deloitte’s Valenti and Alderman say that mobile banking apps should be positioned at the center of a multi-channel strategy. They cite several types of functionality that should be included in a successful app, one of which is prestaging ATM transactions.

There was strong interest in integrating ATMs with mobile phones among ATM & SelfService Software Trends respondents. Nearly 41 percent of them said they have already implemented this technology, up from 23 percent last year. In addition, nearly 32 percent have implemented the technology for contactless transactions.

At Česká spořitelna, the largest bank in the Czech Republic, the bank’s recent implementation of pre-staged transactions has been hugely popular with its customers. It saw several thousand of the new withdrawals in the first month of production. The transaction, which the bank calls QR withdrawal, is completely touchless.

The bank uses ATM software from KAL to facilitate these transactions. The software integrates with its mobile banking application (called George). All ATMs in the bank’s fleet display a unique QR code on the home screen. Customers submit their withdrawal request via George, scan a QR code at an ATM within 15 minutes and receive their cash – no PIN or card needed.

“Our clients can prepare everything in their mobile application and then just pick up the money from any of our 1,500 ATMs,” said David Novotný , the bank’s Product Owner/Squads ATM Network and ATM SW Innovations. “This feature has other benefits too, such as not needing to have your card on you at all or needing to remember your PIN. Some clients also appreciate the speed and privacy, as you can pre-stage the transaction whenever you have time, like on public transport or in the privacy of your home.”

Interview Insights

INTERVIEW QUESTION: 37% of banks say that touchless ATM withdrawals are a priority for them to implement in the near future. Do you think this is due to increased convenience or consumers being more conscious in the post-pandemic world? How did the pandemic affect your ATM network?

China banks have offered touchless ATM withdrawals since quite a long time ago, including contactless withdrawals, phone withdrawals, face withdrawals, and QR code withdrawals. Most reason is to make services more convenient. Of course Covid reduced the usage of cash also to some extent. China banks turned off the recycling function of ATMs during heavy Covid time to avoid contact. — Xie GongHui, Zijin, Fulcrum Technology Co.,Ltd, China

I believe this is mostly convenience driven. The global pandemic has had an impact in the reduction of cash usage, hence ATM transaction volumes, although we are now seeing a return to similar pre-pandemic volumes. — Pablo Santa Teresa, Anonymous Bank, Asia-Pacific

Let us bring a different perspective on “contactless ATM,” which is iris/neuro ID authentication methodologies. The ATMs may become contactless with a flexible integration of technologies such as IRIS + neuro ID + voice recognition etc — Nathan Anand, Bank in SEA, Cambodia

Yes, cardless transactions on ATMs and POS are relevant and will continue to be adopted. The self-service channels like ATMs and digital grew since the pandemic, with a clear winning by the digital channels. ATMs continue to be stable regarding total amounts of cash disbursed prior and post-pandemic, but reduced in number of transactions. — Juan Carlos Espinosa Ortega, Former Head of Digital Banking & Innovation for HSBC Mexico, Mexico

Speed of the transaction is the key here. Less about the pandemic and more about the perceived risk of handling cash in the public space. — Matt Snow, Regions Bank, US

I think that is not only about the pandemic situation but how you can give better experience for our clients. (You can save your time). We have already implemented touchless in Czech Republic. — Miroslav Šimončík, Czech Republic

If you are referring to NFC at the ATM I think it is not only safer from a pandemic perspective but also from a convenience (speed) and a safety (less likely to encounter skimming) perspective. Transaction volume differences and cash delivery impacts were a couple impacts from the pandemic. Also, more ATM employees worked from home vs. in the workplace, which was a significant change. — Anonymous, From a Bank in the U.S.