SAN DIEGO - The ATM as a consumer destination?
Yes, says one analyst, who adds the ATM channel should also be maximized to generate more revenue. Wade Edwards, vice president of EFT product management for Fifth Third Processing Solutions, said ATMs can be customized with a variety of features–ranging from multiple languages and personalized transaction screens to the dispensing of gift certificates or event tickets.
“If the ATM is in an urban environment with multiple cultures, try to accommodate those cultures by having multiple languages available,” he told an audience at NAFCU’s recent Annual Conference here. “People pick one or two ATMs in their home area to go to–primarily for convenience. Focus on attracting them to your locations.”
Having ATMs provide “unexpected moments of delight” is a particularly powerful attraction, Edwards advised. “These can be tickets for movies or sporting events, or just small prizes. These unexpected moments really get people excited. ATMs that dispense these things generate foot traffic and opportunities for cross-selling.”
Once members are in front of a credit union’s ATM, what happens next is vital. Edwards said the two most important features are consumer usability and the display and content. Usability is the most important, he explained, especially if consumers can perform functions at one ATM that they cannot at another financial institution’s ATM, such as paying bills or transferring money to a payee.
As for display and content: “An ATM is just like a branch employee,” he said. “It should talk to the member and offer cross-sell opportunities. You have a captive audience at the ATM, so cross-sell. While the transaction is going on, the ‘Please Wait’ screen is an opportunity.”
ATMs can be personalized to give targeted product marketing messages–either by the card prefix or by account information linked to the cardholder him/herself, Edwards said. In addition, ATMs can be programmed to target “foreign” cardholders by urging them to join the credit union as a way to avoid paying a surcharge.
One of the most exciting and useful ATM technologies hitting the market today is image-capture machines. Edwards said check imaging is projected to reduce the cost of processing checks by 75%, as well as virtually eliminating “empty envelope” fraud.
“Five years ago, people were not comfortable depositing checks at an ATM, but today they are comfortable,” he said. “With image-capture, credit unions will be able to clear items faster and deposit the interchange revenue.”
Edwards said mobile banking–making transactions through smartphones or other handheld devices–soon will be treated as “quasi-ATMs” thanks to ongoing technological advances. For example, members can text message a request for a mini-statement, or they can sign up to receive alerts if an ATM transaction takes place or if their account balance is too low.
“This technology is a ways from being implemented, but it will be hot in about 12 months.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
