Technological advances have improved the potential of automated teller machines (ATMs) to generate new revenue streams as financial and non-financial services distribution media, according to a new brief by Datamonitor.
The brief, “Off-site and enhanced functionality ATMs”, views the ATM as a medium that could offer postage stamps, phone cards and passport photographs, with a web-enabled facility that allows people to make travel reservations and book cinema tickets. Web-based functionality could enable ATMs to be used as a distribution channel for banking services such as bill payment and balance transfers.
Web-enabled ATMs would be a powerful marketing tool to cross-sell services, such as offering loans or credit cards. Customers accessing their bank account through an ATM could find themselves instantly targeted with offers or services from the bank being used.
Abbey National, Orange and Euronet are piloting a “mobile top-up” service which if successful will be made available from Abbey National’s 3,000 ATMs later this year. Orange has distributed “pay-as-you-go” top up vouchers via ATMs in Belgium for the last three years, and 30% of its Belgian “pay-as-you-go” customers use this service.
Datamonitor’s Alex Boorman says that ATM functionality will only improve if new technology for ATMs is implemented successfully and consumers can be convinced to use them. “Whilst the technology is now available to take ATMs forward, it is more difficult to anticipate consumer demand for enhanced functionality ATMs”, admitted Boorman.
More information on the brief can be found at http://www.datamonitor.com/all/reports/product_summary.asp?pid=BFFS0175