COMMENTARY: How Coronavirus Will Shape the Future of Self-Service Banking

Self-service banking has long had a strong reputation as a safe, trusted, and convenient channel. This is a key part of its value proposition to both financial institutions and their customers. While Covid-19 has temporarily reduced cash use and impacted transaction volumes based on the many restrictions large parts of the world are living under, thinking about how we adapt and evolve the channel is key to maintaining customer confidence and trust. 

So, what we should expect now is an evolution of self-service that focuses on measures that build on that reputation as a trusted and safe channel. This includes creating technology-based solutions that provide touchless alternatives and increased automation and self-service to enable continued access to cash. And the ATM is well-positioned to be the primary channel to deliver those solutions. 

As branches closed, reduced their hours, or adhered to social-distancing rules, Interactive Teller Machines (ITMs) have really delivered value. By moving more customers to self-service channels, maintaining that human connection and teller support via video, reducing queues, and extending opening hours, the ITM has become a critical part of a financial institution’s offer.

Until now, the ITM market has been predominantly confined to the United States and Middle East, with only 3% of all global ATMs offering this functionality. But we are already seeing new markets considering the ITM technology as an important solution to reducing contact while maintaining the customer experience. And those within the existing markets are also looking to upgrade their ATMs to offer this interactive service. 

Drive-up ATMs are proving extremely useful in the current crisis, predominantly in the United States. They offer a safe and secure way for customers to bank. With access to cash, a plethora of enhanced services, as well as the ability to talk to a teller, drive-up ATMs/ITMs provide a valuable financial lifeline for consumers. 

So, as financial institutions consider their next ATM install or upgrade strategy, the mix of functionality will change with greater emphasis on multifunction and enhanced services. These include cash recyclers to reduce cash-management requirements and enhanced multifunction ATMs that enable up to 95% of traditional teller transactions to be completed via self-service technologies. 

What’s more, Covid-19 has highlighted a consumer preference for a more contact-free or touchless user experience. Maintaining consumer confidence and trust, and the integrity of the ATM and branch channels, will inform how financial institutions configure their branches and self-service solutions. A combination of social-distancing practices and technologies both play a vital role. Consideration will be given to enabling tap-and-go-style transactions, pre-staged authentication and transaction completion, and mobile cash withdrawals.   

This pandemic has seen customers doing more banking from home and, while there is always going to be a role for the branch, there will certainly be an acceleration in customers moving to digital banking.

Indeed, we’ve seen digital banking being used more than ever before. Our digital-banking customers report more than 70% of their registered users have accessed their accounts this way over the last few months, which is a record high since October 2019. Plus, we’ve seen digital live-chat use has doubled during the pandemic. 

What’s more, financial institutions are also expanding how they’re using their apps. For instance, they’re using geo-location services to send a push notification to members near a branch to remind them to bank from home. Or they’re using them to show customers how to access digital banking and how to contact a banker. Or to locate an ITM or drive up ATM to have safe but face-to-face interactions with a teller. 

Financial institutions are watching how customers use their apps during this crisis. These experiences will expose gaps and opportunities in features and functionality and will define future digital-banking strategies.

As banks firm up their digital strategies, the branch and ATM channels must remain a core component of any retail bank’s delivery strategy. Increasingly digital first, but not digital only, successful banks will place mobile at the center of their strategies. 

—Adam Crighton is senior vice president and general manager at NCR Digital First Banking.