MIAMI–Envelope-free ATMs have increased deposits more than JPMorgan Chase & Co. executives expected.
“We received a significant lift,” Brad Nolan, Chase senior vice president of ATM and cash operations, said during the ATM Industry Association conference here. Chase ATM deposits grew 75% in the first 12 months, following deployment of each intelligent-deposit ATM,” he says. Chase does not disclose transaction numbers.
Chase is the nation’s second-largest bank operator of ATMs with 15,406 machines at the end of 2009. (see story) http://www.paymentssource.com/news/chase-complete-intelligent-deposit-atm-rollout-3000763-1.html
Chase will complete its rollout of intelligent-deposit ATMs April 15, says Nolan, adding 10,000 of Chase’s ATMs are envelope-free and the remaining 5,000 are cash-dispensing machines deployed in airports, convenience stores and other off-premise locations.
Chase buys its ATMs from NCR Corp., Wincor Nixdorf AG and Diebold Inc., the world’s three-largest ATM manufacturers.
With envelope-free ATMs, Chase cardholders deposit cash and checks directly into the ATM without first putting them into an ATM envelope.
Intelligent-deposit ATMs appeal to bank customers who use to deposit envelopes and those who previously did not use ATMs to make deposits, Nolan said. The machine prints a receipt for cash deposits. Deposited check images also can appear on the receipts.
During a presentation, Nolan said each deposit using a branch teller costs $1.07 compared with 27 cents at a full-service ATM that accepts deposits.
Intelligent-deposit ATMs provide another advantage over ATM-envelope deposits, said Alan Walsh, executive vice president of banking at Austin, Texas-based Wincor Nixdorf Inc., a subsidiary of the Wincor Nixdorf AG in Paderborn, Germany.
“When a cardholder writes a deposit amount on the envelope but deposits an empty envelope into the machine, it launches an expensive audit trail,” Walsh said at the conference. “The bank mails a letter to the customer disputing the deposit amount, requesting a customer response.”
ATMs have become a key customer-retention tool, Walsh said. “Five years ago, banks considered ATMs a cost center. Research now shows bank customers visit branches once or twice a year, but they visit their bank’s ATMs 28 to 30 times per year,” he said.
