The not-so-distant pandemic had everyone thinking that cash was on its way out. The use of card payments, online payments and contactless everything trended upwards at an accelerated rate. Indeed, businesses whose main stream of income was cash-related, suffered serious blows. Many were forced to pivot their business models, but the pandemic was devastating to those for whom this was not an option.
However, three years on, cash is still proving its resilience. And financial institutions are taking advantage of more innovative machines and technology to leverage the power of cash and the cash machine. This is particularly true of financial institutions (FIs) in the Latin American and Caribbean (LAC) region, according to financial technology company, Compass Plus’s associate VP & business development director, Carlos Seer. He has seen FIs in this region pushing ATM capabilities to the next level, with the trend moving towards multi-functional, self-service machines that, at times, outnumber human bank tellers. If a customer can perform most or all of their mundane bank tasks at a machine, it reduces costs for the FI as well as lines and wait times for the customer.
FIs in this region are also starting to use ATM machines for things other than simple cash-in and cash-out functions and beyond other account transactions such as statements and own-account transfers. Much needed transactions such as remittances can now be facilitated on modern self-service machines. Remittances are an integral part of the financial lives of people in the LAC region, and being able to send and receive funds via a machine as opposed to the more traditional in-person/high fee ways, is an added convenience. ATM technology also now allows for functions such as bill payments, micro-loan payments and person to person transfers. Adding yet another channel for performing these activities adds convenience, cuts costs and builds customer loyalty and retention.
Increased functionalities also help with security issues. The cash recycling function means that the risks of frequent human intervention to restock cash in the ATMs are reduced. ATM technology can also be used for auxiliary purposes such as market research, gathering important data on customers, as well as acting as a free channel for product and service advertisements. ATMs have certainly moved beyond simple cash machines.
In a post-pandemic world where cash has made a comeback, and people and FIs alike are still wary of in-person banking, with long lines and many physical touch points, ATMs are set to play a vital role in the way people do business. This is even more true with the added functions that modern ATM technology allows, adding benefits and conveniences that customers never had before, truly making these cash machines an extension of the FI branch in all aspects.
Global Processing Centre is supported by Compass Plus Technologies, and can provide guidance and support on the latest ATM technology. Please contact us if you would like more information.
References:
https://thefintechtimes.com/3-ways-to-get-the-most-out-of-your-atm-a-spotlight-on-lac/