Page 49 - Banking Finance September 2020

ARTICLE

Way Ahead free transaction to its customers thus boosting
customer loyalty and helps in generating new
1. EMV Adoption - Until and unless EMV is adopted at all
ATMs owned by financial Institutions, ATMs would be opportunities.
more vulnerable to fraud attacks which puts the security 6. Distributed Ledger Technology (DLT) - This technology
of customers' data at risk. is described as a ledger that is maintained by banks via
nodes in a decentralised form across multiple locations,
2. Mobile Integration - ATM needs to get smarter by
integrating latest technologies available in the market various transaction and multiple individuals. All the
like NFC or QR code etc. to be able to provide better information is then stored and utilised by multiple banks
within the nodal network that use these transaction and
banking experience for smartphone users at their ATMs
history of account to assess the credibility of the account
and to mitigate risk due to various fraud techniques like
card skimming and card trapping. ATM-mobile integration or individual. This attributes enhanced safety and
offers financial institutions significant amount of security for transactions related to such technologies,
opportunities to enhance customer experience by offering which may not only transform the usage of traditional
services like including the ability to store transaction ATMs but also obliterate the use of cards.
preferences, mobile card-less ATM access, faster 7. Varying bill denominations - With the fixed
completion of transactions to be on par with digitalisation denominations dispensed in cash form, many banks have
and market changes in physical channels. enabled their ATMs to dispense cash to the exact
change requirement and provided additional flexibility
3. ATM Data Analytics - With the latest technological
innovations and sophistication at the ATMs, ATMs facilitate to the customer when it comes to their cash
customers to perform wide range of transactions which withdrawals.
were typically handled by traditional branch 8. Solar-powered ATMs - ATMs in urban areas consume
representatives. Thus, there has been a noteworthy substantial amount of electricity. However, in rural areas
increase in the customers choosing for self-service channel the Government is introducing ATMs which will run on
which led to the necessity for data analytics in ATM solar energy enabling the banks to provide services in
industry to recognize customers' preferences and those areas where there is shortage of power.
behaviour and to achieve operational efficiencies in areas
like demand forecasting and cash management. Bank can Conclusion
deploy advanced data-based models and data driven The landscape of the Indian economy is changing, on
decisions, to produce a wide range of customised statistics account of numerous economical, technological and
and increased customer satisfaction. regulatory reforms which in turn are affecting the ATM

4. Video Banking - Using Interactive Teller Machines (ITM) industry. However, in the long run, to alleviate the effects
customers can perform 95% of the activities performed of changing scenario, strong and effective external risk
by the branch through real time communication with management along with enterprise risk evaluation is
remote teller generally situated in call centre. It will essential, which will not only enable the business to sustain
help the bank to add value to its customers by providing in the market but will also attain the objective of better
extended access to banking services and financial customer facilitation. Unless the change is incorporated by
experts to its customers. the industry and its elements, which apparently requires
strategic management and innovation, the industry may
5. ATM Branding - This facilitates increase in transactions
and helps to generate new opportunities by gaining find it difficult to sell secure services to customers.
customer attention and ATMs present profitable References
opportunities to promote brand awareness. In the
1. RBI e-circulars
traditional form of ATM branding, and ATM operated
2. ATM Industry: Changing Landscape and Emerging Trends
by and independent ATM Deployer builds a partnership
with a financial institution (FI), in which the ATM bears by PWC
the name, logo and graphics of the financial institution. 3. ATM futuretrends 2017 by ATM marketplace
Through this, a financial institution can offer surcharge 4. www.economictimes.com T

BANKING FINANCE | SEPTEMBER | 2020 | 49