Introduction
Automated teller machines or ATMs have a plethora of capabilities. With the help of your credit or debit cards or with any other kind of contactless payment channels on your mobile phones, you can very easily undertake a host of transactions including checking the balance in your account, depositing a check, withdrawing cash or transferring money.
The ATM
An automated teller machine or ATM cash dispenser ccan be defined as an electronic banking outlet that enables customers to complete routine transactions without the assistance of a branch representative. These days any person who owns a credit or a debit card can access cash at a number of ATMs in a hassle free manner.
ATM machines are considered to be a convenient and secure node, allowing a number of consumers to undertake quick self-service transactions. Modern ATMs provide a strong and substantial payment infrastructure in smaller towns, especially in emerging markets, contributing significantly to financial inclusion.
Impact of Covid-19 on Consumer Behaviour
While COVID-19 is pushing consumer interest towards contactless transactions, the desire for holding cash has not been eliminated completely. Post an initial decline, cash usage has witnessed a surprising reversing trend worldwide. This probably means cash is a confirmed mainstay as a form of payment across the globe.
Many financial institutions are facing a strong need to structure and organise their cash management in order to keep the supply of cash most efficient. In this context, ATM machines remain a crucial on and off-ramp for circulating cash because the self-service channel is the most reliable and effective way to offer easy access to cash to consumers.
The New Normal & ATMs
While the world is gradually adjusting to a "new normal,” the ATM machine has turned into a lifeline to individuals who are not quite comfortable with digital banking.
The self-service channel, apart from simply offering a utilitarian and transactional window, can also act as a relationship-building tool for banks that choose to provide services such as video consulting, account opening and cheque book printing.
Uses of ATMs
Over 60 years, ATMs have changed the way we bank. Yet many people remain unaware of everything that ATM machines offer. Given below are some of the top functions of ATMs:
1. Cash Withdrawal
ATMs are 24x7 terminals that enable customers to take out cash whenever and wherever they want to. This flexibility has made these machines critical to any bank’s infrastructure.
2. Mini Statements
Mini account statements can be easily printed without waiting in the long queues at the bank or arriving at the bank only to find out it is shut.
4. Money Transfer
You can transfer money easily from one account to another with the help of an automated teller machine. Instructions for transfers are usually found on the ATM machine, so you don't have to go inside of the bank for this transactional service.
5. Cash Deposits
You can deposit cash directly into any ATM associated with your bank. This saves you from standing in long queues or hoping that you get to the bank before it closes.
The future of ATMs
ATMs will always complement internet, mobile, telephone, and other banking channels and redefine the spaces that we often utilise to engage with the banks.
In the future, the potential for ATM machines is huge. Rather than simply being a source of cash, these self-service terminals can literally become the epicenter of the revolution and redefinition of the retail banking experience.