ATM vendor NCR has demonstrated its new ‘Freedom Concept’ ATM.
ATMs are destined to play an expanding role in the self-service capabilities of banks and other FSIs. Last week, NCR demonstrated its ‘Freedom Concept’ prototype ATM. The red, egg-shaped, keyless, screenless machine dispenses cash in response to infrared signals sent by PDAs with ‘ATM software’ installed. The customer enters the transaction information and PIN prior to the interaction, and the ATM sends an electronic transaction record back to the PDA when the process is complete.
NCR also plans to add support for Bluetooth, a wireless, device-to-device transmission standard that will be incorporated into new PDAs, mobile phones, and other electronic devices. NCR envisions the ATM providing additional services, such as dispensing airline and concert tickets purchased on Internet-enabled PDAs.
The prototype is unlikely to gain widespread use. At present, only 6% of US households have PDAs; while mobile phone penetration is higher at 50%, Bluetooth phones won’t achieve widespread penetration for a number of years. For now, there’s little benefit for customers in entering the transaction information on their PDA instead of the ATM screen. People are also much more likely to find themselves without their PDA than without their ATM card.
However, in the longer term PDA banking could allow financial services institutions to gain a competitive advantage. As account aggregation becomes more prevalent, banks could use a PDA-enabled ATM channel to attract customers that subscribe to total wealth management solutions. This could include customized advice and account information drawn from multiple institutions, including bank statements and mutual fund accounts. Consumers will also appreciate the ability to obtain tickets purchased over the phone or Internet at ATMs, given the expense and hassle of the present system of distributing tickets.
ATMs are often-used, convenient, and trusted touch points for almost all consumers. In the coming years, banks will expand this channel to increase cost-effective servicing and provide convenience to their customers. Introducing support for wireless devices will be one way banks fulfill the promise of this channel.
