The New ATM

This old dog is learning new tricks. Tomorrow's automated teller machine will be Web enabled: Not only will it dispense cash, it will also scan and print deposited checks for faster processing, give you overdraft protection, float you a loan, and even get chatty.

"What [Web enabled] means is we finally have a much more powerful computer—typically running Windows NT—on top of this mechanical device, which is talking to the bank over a private TCP/IP network," says Bob Chlebowski, Wells Fargo Bank's executive VP for distribution strategies.

Part of the motivation for banks to enhance their ATMs is to bolster branding: ATM usage is leveling off thanks to the popularity of debit card purchasing, giving customers less contact with their banks. Plus there are legal incentives to upgrade old machines to meet Americans with Disabilities Act requirements for the visually impaired.

Soon you'll be able to customize the ATM screen to display your favorite transactions and set "fast cash" amounts, or even give the bank permission to send you targeted services, all right at the ATM. "Say you have insufficient funds—it could ask if you have overdraft protection or offer you an advance," says Chlebowski.

Eventually, you could even link online and ATM banking in areas like bill payment. "You could do the setup on your home computer, and if you're on the road when it's time to pay your utility bill, go to an ATM to send it off," says Dave Gasper, president of Gasper Corporation, a subsidiary of ATM builder NCR.

The new machines should also help bring in new customers. "There's this whole 'unbanked' market of people who need financial services but don't have them," says Stessa Cohen, research director at Gartner. Already courting that underserved group is 7-Eleven. The ubiquitous corner convenience mart aims to make its financial services as self-serve as Slurpees, with Vcom ATM kiosks. Part of a pilot program in 100 stores in Texas and Florida, Vcoms provide many of the same services as a counter clerk—check cashing, money orders, and money transfers—in addition to traditional ATM services.

But the question remains whether consumers will really use all these new features, since trust has always been an issue, especially with functions like deposits. Deposit imaging technology is one solution in the testing phase. Customers insert a check without an envelope, and the ATM prints the scanned check as a receipt. Better yet, the bank's work is sped up, since the scan can be used to begin processing, meaning you may actually get your money faster. And new Triple-DES PIN standards set to take effect in all new ATMs by April 1 of this year and upgraded in existing ATMs by 2005 should help users sleep easier as their transactions are transmitted more securely over TCP/IP networks.

   ATM ENHANCEMENTS Feature What It's Good For When We'll See It Customization Reconfigure ATM settings on the fly; more online banking features. Already available on some machines. Talking Helps visually impaired customers; meets ADA requirements. Rolling out now as banks upgrade machines. Check Imaging Scans checks at the point of deposit, which speeds processing. Late 2002 for small pilot programs. Money Orders/ Transfers Automates common nonbank financial transactions. Already available through 7-Eleven's Vcom kiosks. New PIN Standards Better security for transactions. The norm on new ATMs installed after April 1.

Copyright © 2002 Ziff Davis Media Inc. All Rights Reserved. Originally appearing in Ziff Davis Smart Business.