Smart ATM

A smart ATM (automated teller machine) is an electronic banking outlet with advanced computerized devices that are experienced in performing various other traditional banking functions besides cash withdrawal. Some of its prominent facilities include fund transfer, account opening, cash deposit, and check deposit.

These ATMs are rapidly replacing physical bank branches due to their prompt and seamless customer services, greater security, and ease of use. Moreover, such arrangements facilitate contactless banking transactions enabled through touchscreens and innovative technologies. Moreover, such ATMs use data analytics to gauge customers' preferences, behavior, and other insights.

A smart ATM is an electronic or computerized banking unit where the customers can not only withdraw money but can also avail of various other facilities like -

1. Depositing coins, notes, and checks;
2. Transferring amount from one account to another;
3. Checking the account balance;
4. Opening a new account;
5. Changing the debit card PIN and many other functions.

It is a technology-based arrangement where everything is remote, whether it is customer services, language setting, security, or technical issue resolution. Hence, unlike the traditional ATMs, these outlets don't have any security guards for safety. However, these ATMs are still secure; smart ATMs allow transactions only after verifying the authenticity of the user through biometrics and card chip technology. Also, they are operated using debit cards, which makes them more secure. Further, they have a touchscreen for providing information and details, which provides a seamless user experience.

Nevertheless, just like any other ATM, these machines are also prone to technical faults and may run out of cash. Moreover, they have limitations on maximum withdrawals and deposits, which may dishonor the customers' need to deposit or withdraw a higher amount than the permissible limit.

With smart ATMs, users can now access multiple banking services through their debit cards at any time. Let us now understand the various unique characteristics of such banking:

1. Cash withdrawal: Users can withdraw any amount in their desired denomination from such ATMs. Moreover, some smart ATMs are equipped with Fast Change machines that can convert large denomination notes into smaller denomination notes or coins.
2. Check account balance: Users can find the balance in their bank accounts using their debit cards at these electronic banking outlets.
3. Check and cash deposit: Bank customers can even deposit checks or cash to be credited to their bank accounts at zero charges applicable at such ATMs without the pain of visiting the branch or waiting for their turn.
4. Transfer money: Customers can even credit funds from one account to another in seconds using mobile devices.
5. Change debit card PIN: If users suspect fraud or insecurity regarding their debit cards, they can conveniently change their PIN at the ATM to ensure greater safety.
6. Loan payment: These ATMs also help users pay their loan EMIs.
7. Other services: Smart ATMs offer numerous other facilities, such as a personalized ATM interface, self-service platform, cross-channel services, and preferred language options.

Smart ATMs are a common banking model in the digital world. Now let us go \through the following examples to understand how these computerized banking solutions have made the lives of people convenient:

Example #1

Suppose Mrs. Mary, who runs a small bakery shop, has to visit her bank almost every day to deposit the amount of cash collected from the previous day's sales. But recently, her bank installed smart ATMs, one of which is in the locality where Mrs. Mary's shop is situated. Now, she can quickly deposit cash, transfer money to vendors to pay bills, and check the balance in her business account through the smart ATM using her debit card.

Example #2

Maya Labs, a social initiative technology company focused on providing financial services to underserved communities, has partnered with Burroughs, a provider of lifecycle management services for cash automation and self-service technologies. This collaboration will deploy Maya's "smart ATM" platform, offering consumer financial services like remittance, check-cashing, and bill payment through a device-as-a-service (DaaS) subscription model. This approach eliminates upfront and maintenance costs, allowing for an immediate return on investment with round-the-clock access to financial services.

Smart ATMs are known to offset the various limitations and inconveniences that customers face in traditional banking setups. Some of the advantages of using these ATMs are as follows:

• Convenient-to-Use: The smart ATM machine has a touchscreen facility instead of a keypad arrangement, which makes it more user-friendly and accessible for touchscreen smartphone and tablet users.
• Greater Security: These ATMs use advanced security features, such as biometric authentication and card chip technology, to reduce the possibility of fraud.
• Contactless Banking: The COVID period has emphasized the significance of contactless transactions, and smart ATMs do the same by discouraging face-to-face human interaction when withdrawing, depositing, or transferring money.
• Customer Service In No Time: These electronic devices have an automated process and, therefore, are more efficient and quick in processing transactions with top-notch security. Thus, they don't require customers to wait in long queues at banks.
• Effortless Transactions: It facilitates credit unions and banks' offering various banking functions like check and cash deposit, account opening, money transfer, and others without the need for customers to visit the branch.
• Fosters Customer Interactions: It further helps financial institutions reach out to a vast spectrum of users who can only visit the branch occasionally. Such an arrangement enables the banks to attract these customers through frequent incentives like the one on first-time ATM use.
• Remote Maintenance: These ATMs are fully automated, as are their security and management. Unlike traditional ATMs, these facilities don't require a security guard or technician for maintenance.