Mobile To Displace Deposit Automation As Driving ATM Force

By 2018, will your nearest ATM look more like your smartphone?

The answer is a resounding “yes” if new report from the ATM Industry Association (ATMIA) proves accurate, as it predicts that a mobile revolution will define the ATM industry for the next five years.

ATMIA’s first online global ATM innovation survey was conducted in the second quarter of 2013. In total, 176 respondents, described by the report as a “sophisticated, senior-level audience with significant payments experience,” provided responses for the survey on a wide range of topics.

These included questions about the expected growth of value-added ATM services, the biggest obstacles to innovation in the sector and the most pressing improvements the industry needs to make to ensure its future success. But, one message was clear: deposit automation, long the industry’s driving value-added service, is yielding in popularity to a relative newcomer.

“While deposit automation has made the biggest recent impact on technological progress in our industry, the survey found that the future of innovation lies in greater linkages between ATMs and Customer Owned Devices in order to create a payments hub where online payments, mobile payments and ATM transactions are interconnected in a seamless customer-focused system,” the report stated. 

In this Data Point, we break down the report’s findings revealing what the ATM industry believes will be in store for consumers, merchants and banks in the coming years.

Mobile ATM Service Will See Fastest Growth

At the beginning of the report, the researchers note that deposit automation was named as the most important recent technology for the development of the devices. The future of ATMs, however, will be fueled by mobile contactless payments.

Researchers found that 54.9 percent of survey takers say this ATM service will see the fastest growth over the next five years. Automated deposits fell to second place, capturing 40.8 percent of the vote, while bill payments placed third with 36.6 percent of respondents voicing their belief that this will be the most important trend in ATM service.

Global Card Brands Predicted Obstacles To Innovation

Still, while mobile payments are seen as a driving force, just over 50 percent of respondents say that rules and mandates implemented by global card brands are holding back innovation. Further, the study predicted this sentiment may continue to grow in coming years “given

current debates about EMV liability shift and routing choice issues in that country.”

External regulations, the cost of research and development and national ATM network rules rounded out the top four responses to what will be the biggest obstacle in ATM innovation, netting 41.7 percent, 33.8 percent and 31.7 percent of the responses, respectively.

ATM Security In Need Of Most Urgent Overhaul

According to researchers, survey takers also demonstrated an awareness of the need to modernize ATMs by connecting them to mobile devices. When asked what in the ATM industry needs the most improvement, 43.1 percent cited the security of the ATM. Additional responses included the ATM’s link to smartphones – 41.7 percent – the harmonization of the ATM – 34 percent – and the ATM’s link to online payments and services – 34 percent.

For more industry insights, download the full report here.


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