Quontic Bank on the Role of ATMs in Digital-First Banking

ATMs may not be the first thing that comes to mind when digital-first banking is mentioned, but they have an essential role in the digital space, according to Grace Pace, senior vice president of digital banking at Quontic Bank.

“Until there’s no need for cash, that’s the only way customers have the ability to access real money in their hands when they’re digital banking customers,” she told PYMNTS in a recent interview.

Quontic owns just a single ATM, but Pace said the bank gives customers access to more than 90,000 of the machines across the United States by working with multiple ATM network providers.

By waiving ATM fees, the financial institution (FI) helps ensure that its digital banking customers are not limited in withdrawing or depositing cash. Contracting out ATM service makes the most sense for Quontic, as attempting to maintain its own nationwide ATM network would be prohibitive.

“Our focus is providing free ATM access by leveraging ATM networks that our customers can use,” she said.

Pace explained that as the technology around ATMs improves, Quontic’s customers will be able to take advantage of many of those technologies without further investment from Quontic. All the FI has to do is ensure that its own offerings work with partner ATM networks.

Keeping up With Changes

“As ATMs evolve, the more services they offer, the better for our customers, because then they’re able to do more at an in-person terminal instead of having to do as much online,” Pace said.

She explained that Quontic can work on the app and software side, enabling functionalities like mobile device-driven contactless ATM interactions. The key is staying abreast of features available in its partner ATM networks to ensure compatibility.

“We make sure the debit cards we’re providing are compatible with the ATM networks we’re partnered with,” she said. “That way, [customers] aren’t required to go to only a certain network. They can use multiple networks, and their cards will work just fine.”

Pace noted that video teller services are not a current focus for Quontic when it comes to ATMs, as it makes more sense to implement those technologies through the FI’s app or online portal.

“We will, in the near future, be offering the ability to video chat, but for us, we offer consumer digital products and find that those products are pretty easy to utilize,” she said.

Pace added that face-to-face conversations with video chat often apply more to services such as digital lending and business accounts, where customers need an adviser to walk them through the process. As Quontic explores new technology implementation, she expects the FI’s video chat services would deal more with troubleshooting account problems or handling situations that require screen-sharing.

“Quontic is focused on innovative products for our customers, so whether it be our Bitcoin checking account or offering some of the highest rates in the nation on our savings and high-interest checking accounts, that’s really our focus,” she said.

Quontic tries to remain nimble, however, and Pace said the FI is keeping tabs on developments that could affect its customers or make its banking experience better — such as Bitcoin ATMs.

Bitcoin Convenience

Quontic’s current approach to cryptocurrencies includes a checking account that offers rewards in bitcoin, with the customer’s earned credits going to a bitcoin account serviced by a partner provider.

Customers who want to cash out their earned bitcoin as regular currency can initiate a sale and transfer. The redemption can even be initiated within the Quontic app, though the transfer is not quite instant. Funds are usually deposited in a customer’s Quontic account the next business day.

However, Pace said Quontic will continue to assess the future of direct bitcoin deposits and withdrawals.

“We are aware of Bitcoin ATMs that are popping up, and I think [they’re] definitely something that’s interesting to us,” she said. “We don’t have an immediate plan on interacting, but we’re definitely keeping our eye on that.”

ATMs Into the Future

Pace believes ATMs are not going away anytime soon for customers of brick-and-mortar banks — or for digital-first banking customers who rarely use cash. As long as cash remains a currency that people might use, banking customers need to be able to move it into and out of their accounts.

Quontic’s strategy of partnering with multiple ATM networks and working to eliminate as many fees as possible is based on customers’ interest in ensuring they have that physical touchpoint when they need it, Pace said.

ATM access remains a significant concern for all types of banking customers, and that means all types of FIs will continue to provide it.