By 2003, IDC projects the automated teller machine will surpass the branch as the highest volume U.S. banking channel, with over 13 billion annual transactions. However, as transactions, and the number of ATMs, grow, IDC believes banks will face increasingly difficult challenges, including rising ATM support costs, identifying new revenue streams, and potential new accessibility regulations under the Americans with Disabilities Act. Together, these factors make this a compelling time for banks to consider Web-enabled ATMs.
“Web-based strategies have begun to impact the entire retail banking delivery system,” said Ian Rubin, IDC’s director of online financial services research. “The availability of Web-enabled ATMs signifies an opportunity to cross-pollinate online banking and ATM services, which can have significant implications on banking products, customer relationship management, and customer acquisition strategies.”
IDC believes this is also an opportune time for banks to review Web-based ATMs in the context of a larger multichannel delivery strategy. “All significant channel investments going forward will be scrutinized for leverage across other channels, including Internet, ATM, call center, and branch,” Rubin said. “Banks that are contemplating a multichannel delivery strategy may well find a Web-enabled ATM fleet to be the logical first phase.”
IDC’s study Web-Enabled ATMs: Implications for Online Banking and Multichannel Delivery (IDC #25694) examines strategies behind the consideration of Web-enabled ATMs. It discusses the primary business drivers and cost considerations for deploying Web ATMs, reviews current ATM bank pilots, and selected vendors providing solutions.
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