CANTON, Ohio-Attendees at the recent Consumer Electronics Show in Las Vegas had more than a look at a new ATM that syncs with smartphones; they likely glimpsed the next wave of ATM technology, experts are saying.
Diebold's new "Millennial-Inspired" ATM on display at CES accepts smartphone and tablet transactions and could be a prototype for ATMs in the future-machines more convenient for users and less costly to manage, the company said. The new technology may eventually impact how current ATMs are managed.
The machine is the first ATM that integrates with mobile devices via the cloud, allowing cardless transactions. The cardless prototype features a new user interface that enables touchscreen gestures, such as flick-and-drag, commonly used with smartphones and tablet devices. The ATM is also paperless, delivering transaction receipts via text message or e-mail.
To complete a cardless cash withdrawal, a preregistered credit union or bank customer scans the ATM's QR code using a smartphone. When the devices sync via the cloud, a transaction screen appears on the smartphone where the consumer selects the withdrawal amount. The cloud server then sends a one-time code to the smartphone, which is entered to authenticate the transaction and receive cash.
The ATM also permits person-to-person (P2P) payments. A consumer sets up a pre-staged transaction that authorizes access to cash to a third party. The consumer inputs the payment amount and recipient's contact information, which can be selected directly from a contact list. The recipient then receives a one-time code to use at an ATM or branch to receive money.
In addition to reducing security threats, consumer appeal comes from the ATM operating like familiar smartphones, offering greater convenience, said Jim Block, director, advanced technology development for Diebold. "Consumers are attached to their smartphones. This ATM is just the next step in financial services delivery."
Even More Benefits
Bob Usner, senior director, financial enterprise services at Diebold, explained the benefits to FIs go beyond saving time and money in managing the ATM since there are fewer hardware and software adjustments to make because the machines do not carry onboard computers. Usner contends the machine makes the FI more relevant to consumers, and not just to Millennials, the demographic the machine is named after.
"You are improving personalization and customer engagement, essentially delivering a better user experience and making the financial institution a more valued partner. This is transformational banking."
Despite the ATM prototype at CES not having a card reader, Diebold said the final product-expected to be introduced in a pilot in the second half of this year-probably will include a card reader and will also address EMV. "We are evaluating the mix of contactless, NFC (near-field communication), mobile and card interactions as to determine what might be in the final product," said Usner.
Usner said the ATM is in the advance concept stage and that Diebold is finalizing market and usability studies. while evaluating the variations on delivery, such the ability to retrofit existing Diebold ATMs.
"We are looking at the possibility of upgrades, but that is still being determined," said Usner, who emphasized that changes could become more than retrofitting old ATMs to simply do tasks the new machine can. The new Diebold ATM is driven from cloud servers, which Diebold explained makes it easier to update and manage, which will result in reduced costs.