Even a limited investigation into the ATM and mobile banking channels will quickly dispel any doubts that a fusion of these two preeminent channels is inevitable. Auriga, Diebold, NCR, and Wincor Nixdorf have all demonstrated their mobile phone-based cardless cash withdrawal solutions. It is interesting to note that all of these vendors have embraced the QR code technology — a clear endorsement for a technology that is secure, low-cost, and readily available.
In our case, for example, we have advanced this idea by combining cardless ATM withdrawals with its mobile payments solution. The company has also added an option to make payments using a bank account rather than a card to support those consumers who do not embrace, or do not qualify for, traditional bank cards.
Not surprisingly, many large retailers are watching these developments with keen interest, ever mindful of the significant interchange fees they pay for accepting card based payments.
Although cardless ATM withdrawals and mobile payments are very exciting, they are only the start of a deeper, multi-channel convergence. The real channel convergence is not happening at the endpoint devices, it is happening internally within the banks and processors, where modern, flexible technologies are being increasingly deployed to augment or replace yesterday’s legacy infrastructure.
The abilities to centralize business services to save costs, to easily deploy services over any channel for greater consumer choice, and to achieve faster times to market for new services are no longer “nice to have” luxuries — they are now “must have” attributes to stay in the game.
It is little wonder that leading banks are shifting their IT investments away from solutions that perpetuate a fragmented services approach in favor of true multichannel systems that facilitate the ultimate consumer experience.
Once the consumer is placed at the center of your self-service strategy then you quickly realize that it is their needs and preferences that should rightfully guide your approach. There is no magic silver bullet that will suit every consumer’s needs.
The real secret is to allow consumers to interact with their bank the way they want to — with as few restrictions as possible.
Banks can create deeper and more enduring relationships with their customers by implementing personalization profiles that allow consumers to tailor their own service experience. Alaric’s MySpend solution is an excellent illustration of how banks and consumers can better cooperate to combat fraud.
Using MySpend, consumers can define their own use rules to significantly improve the accuracy of any fraud detection system. For example, card transactions from specific countries can be readily declined if a consumer knows that her or she will not be there. MySpend also provides consumers with an instant notification of their transactions and the means for them to immediately flag any transaction that they did not perform.
The use of consumer specific profiles can be easily extended beyond the anti-fraud focus of the MySpend solution. More broadly, consumer-configured use profiles can improve the entire consumer experience, regardless of the chosen service channel. Auriga’s ATM solution includes an intelligent menu that automatically tracks the consumer’s transactions and presents the most frequently used transactions on conveniently accessed menu buttons.
Ultimately, the business challenges are not about technology; they are about learning how to use the technology to promote growth and identify new competitive advantages. A recent ATM Marketplace report said that “The bank of the future will be a multichannel, multifunction and multi-device environment.”
Given the current evidence it seems that this is a sentiment everyone can agree with.