Banks and customers alike are realizing the many benefits of advanced function ATMs – the most efficient method for capturing and processing ATM deposits.
After relatively slow adoption, ATM deposit automation is gaining momentum and is expected to be one of the fastest-growing banking technologies during the next several years. Image-enabled ATMs have become much more affordable, reliable and user-friendly, so many banks are building business cases to replace their conventional, envelope-accepting ATMs with the tangible cost savings and efficiencies offered by this technology. Customers value the convenience and immediacy of depositing checks at image-enabled ATMs and walking away with a printed receipt that displays the check image and a real-time account balance. This ATM advancement is a true win-win for everyone.
Reasons that banks should consider investing in image-enabled ATM technology include:
Reducing The Cost Of Processing Deposits
Image-enabled ATMs provide many of the benefits of brick and mortar branches at a fraction of the cost. Research suggests image-enabled ATM deposits are approximately three times more cost-effective than standard envelope deposits. The images are official legal documents, so their paper counterparts don’t need to be emptied from the machines as often, which reduces ATM service calls by bank personnel. Additionally, image-enabled ATMs provide an economical option for banks to expand their geographical reach, which is materially more cost-efficient than building branches.
Reducing The Potential For Fraud
According to ATM Marketplace, approximately 70 percent of deposit fraud takes place at the ATM. Image-enabled ATMs virtually eliminate empty envelope fraud and save banks money on the cost of envelopes as well. Image-enabled ATMs can also shorten the window for fraud, because they allow banks’ processing departments to review ATM deposits earlier in the day, meaning they can catch potential fraud sooner than with conventional ATMs. Image-enabled ATMs also help reduce internal kiting. For additional protection, many banks incorporate ancillary fraud products that are integrated with their core systems and ATM channel for added ATM deposit fraud protection and prevention.
Optimizing The Efficiencies Of Your ATM Channel
Deploying image capture technology at the ATM optimizes the efficiencies of this convenient channel. In addition to eliminating the need for banks to collect paper items each day from their ATMs, image-enabled ATMs also reduce back-office expenses because deposit processing is accelerated and the time spent balancing ATMs is significantly reduced. Unless the ATM cannot read a check, misreads a check, or the check is suspected to be fraudulent, there’s no need for an employee to physically process ATM deposits.
Dramatically Improving The Customer Experience
Turning paper checks into electronic files enables banks to process the deposits faster, which means funds are available sooner. Business day cut-off times for ATM deposits become virtually non-existent. Customers no longer have to fill out deposit slips or bank envelopes, and they receive the digital image of the front of their checks directly on their receipts. The immediate validation of this process gives customers peace-of-mind.
Sharpening Your Competitive Edge
Image-enabled ATMs can help banks attract and retain retail and business customers alike, because it frees bank staff to focus their time and attention on sales and service rather than routine transaction processing. Image-enabled ATMs also offer a “cool” factor that sets your ATMs apart from the ones down the street.
After realizing the benefits of this sophisticated ATM technology, it’s clear why so many banks are choosing to implement image-enabled ATMs. Among those banks, many are selecting fully automated and integrated ATM management solutions. Integration provides additional efficiencies including speeding banks’ access to real-time data from multiple banking channels, improving the ability to cross-reference information, and reducing the time spent troubleshooting issues.
In addition to integration, there are other important benefits in a fully automated ATM channel. Look for a platform that incorporates leading-edge imaging, transaction balancing, and fraud detection technology to fully automate the processing and management of ATM deposits through their entire lifecycle. Total automation means you will benefit from image capture and processing at the ATM, deposit reconciliation, automated balancing, courier management, fraud detection and prevention, report and audit trail generation, and more. You’ll want to look for a management system that supports all major ATMs, branch and centralized check transports, teller window devices such as MICR swipe readers, and check image capture devices. And you’ll want to ensure you choose a proven and trusted vendor that can offer you dedicated support every step of the way.
If you haven’t considered an image-enabled ATM platform, what are you waiting for?
Tamara Coole is an advanced application educator at Jack Henry Banking, a division of Jack Henry & Associates in Monett, Mo. Email: tcoole@jackhenry.com.
This article originally appeared in New Jersey Banker magazine.
