PNC Financial Corp. has become the first to install advanced automated teller machines that capture and display an image of a deposited check.
Six of the ATMs began operating in two branches of PNC's lead bank, Pittsburgh National, in late June. The company plans to add at least 22 more by yearend.
The ATMs can accept a check deposit without an envelope, capture an image of the check, and read the magnetic-ink code for the bank account it is drawn on. The check image is displayed to the customer, verifying that it has been accepted for deposit.
Partial Deposit Possible
The ATMs can also dispense cash, including coins, and allow a customer to deposit part of a check and get cash for the remainder.
InterBold, a joint venture of International Business Machines Corp. and Diebold Inc., manufactures the ATM. Applied Communications Inc. of Omaha provided the software.
Neither NCR Corp. nor Fujitsu-ICL Systems Inc. have ATMs in production that are ATMs in production that are capable of capturing images, but both demonstrated prototypes at recent trade shows.
Eventually, PNC officials said, its automated tellers will be able to transmit images of checks directly into the bank's computers for processing.
"We feel the technology is still evolving as to how to capture an image and ensure it is a legitimate check,' said John M. Zeller, marketing manager for financial systems, at Fujitsu, based in San Diego. "The way banks will use this technology in their back offices has not been thoroughly defined yet."
PNC is dealing with security issues initially by restricting the check cashing service to Pittsburgh National customers. The amount that can be with drawn is based on a customer's normal balances.
"There's a risk inherent in any kind of check cashing," said Jonathan Williams, a spokesman for PNC. "We've taken steps to manage the risk as best we can with the current limitations of the technology."
Later, however, PNC plans to offer the service to other banks in Trinet, an ATM network in western Pennsylvania connected with CoreStates Financial Corp.'s MAC system. PNC does the transaction-switching for Trinet.
In another bid to modernize its retail service delivery, Pittsburgh National has opened a kiosk, called the Banking Station, that allows customers to get information and apply for loans through a video link to lending officers. In October, PNC plans to open two more kiosks,one in the Greater Pittsburgh International Airport and one in a new regional banking center being built in North Hills, Pa.
The video banking kiosk is marketed by Personal Financial Assistant Inc.