Blog: Expand your reach with off-premise ATMs

May 18, 2022  |  STEFAN PLATTMANN

Go the distance, so your consumers don’t have to 

The growing importance of digital channels, cost pressure, and sustainability considerations have led to a changing retail banking branch strategy in many regions over the last years. In many cases, especially countries in Europe and North America, this resulted in a reduction of the number of branches. However, despite the rising popularity of digital channels—markedly during the global health crisis—consumers still like to manage their finances via a combination of channels. Indeed, 71% of participants in a recent study conducted by NielsenIQ stated that they use all channel options: digital, branch and self-service, with the latter being the most widely adopted channel (95%). Also, the question of whether an ATM is located within an acceptable distance was one of the top 3 criteria when selecting a new financial services provider1 . Taking that into account, financial institutions (FIs) should have an interest in maintaining a physical presence close to their customers—even if a traditional branch is not viable. 

A conveniently placed off-premise ATM is becoming the go-to channel for physical fulfillment. With new capabilities, open APIs and flexibility that far exceeds legacy infrastructure, modern ATMs can enable FIs to leapfrog over the limitations that have hampered their modernization efforts in the past. Apart from this, off-premise installations are also viewed as a cost-effective way to provide banking services to the un- or underbanked, and many financial inclusion strategies have boosted non-branch ATM deployment in recent years. In fact, off-premise installations make up by far the largest number of deployments worldwide: more than half of the ATMs across the globe are installed off-premise2 .

There is some variety to how an ATM can be deployed off-premise. Two factors especially can be used to characterize them: They can be installed inside a building or on the outside—the former will in most cases be subject to opening hours while the latter allows 24/7 access. They can also be either freestanding or installed through a wall. So, there is a lot of flexibility depending on the requirements of the location. If you want to find out more, read this blog on the strategic choice of ATM location.

We have taken a cursory look at some of the benefits that off-premise installations offer in general, but let us take a closer look at the groups who are influenced by them the most. 

  • Consumers have gotten used to interacting with their financial provider anywhere and at any time. Needing to go to their bank’s branch does not fulfill this requirement, but an off-premise ATM can. For example, in supermarkets and retail stores, shopping malls or on the street, inside public buildings, restaurants, bars, casinos, gaming centers, or office buildings, as well as transportation hubs such as train stations, and airports. Installing the ATM where consumers spend their time and go about their day-to-day business offers not just convenience but additional value.
  • The owners of the properties where an off-premise ATM is located can also benefit from the installation, as it can become an additional source of revenue for them and, at the same time, an additional service to their own customers—or in the case of municipal installations, their citizens—that simultaneously increase consumer traffic and in-store spending.
  • Banks perhaps benefit the most from well-planned off-premise installations: They can reduce their costs and footprint while retaining a physical presence and continuing to provide access to cash for their customers—even expanding their reach if they decide to install an ATM in a location where they have not been able to reach consumers before. Simultaneously, an off-premise ATM can promote their brand and presence, since they are also regularly used by off-us consumers. Providing access to ATMs without a fee is popular among consumers3 ; FIs may even be able to attract the interest of new customers if the in-network use is free of charge and they would like to make use of it.

  • Off-premise ATMs certainly offer advantages, but one reason why banks may hesitate to deploy them is that they demand a different service model compared to on-premise ATMs. Whenever an on-premise ATM is out of service during a branch’s opening hours, branch employees will either notice it or be informed by consumers. They will be able to act on it quickly, for instance by resolving minor issues themselves (clearing simple jams, replacing consumables, etc.) or by raising a service request with their maintenance provider in the case of a more serious issue. This model obviously does not work in the case of off-premise devices. But that shouldn’t be a showstopper. With the right 24/7 monitoring capabilities in place, incidents can be detected in real-time. Many times, automated auto-recovery is completed, and devices are back to service in a matter of minutes. When auto-recovery is unsuccessful, a service request automatically reaches a service desk; agents can access data they need to resolve an incident remotely or efficiently schedule the dispatch of a technician, equip them with the required spart part(s) and all instructions to fix the issue fast and the first time.

    Maintaining in-house state-of-the-art monitoring and remote resolution capabilities and a team of skilled desk support agents requires scale and can be extremely expensive. Outsourcing monitoring and fleet management can be far more cost-efficient while enabling much better control of all ATMs, including off-premise ones, while maximizing availability, consumer experience and satisfaction across the entire network.

    With our DN Series™ Diebold Nixdorf offers an ATM family that is purposely designed as a best-in-class IoT device with a staggering 150 sensors and 100 other data points. When connected to DN AllConnect℠ Data Engine, data can be collected and analyzed to build the precise personality of each device, maximize the efficiency of servicing and, in some instances, detect and pre-empt possible future failures. Adding our Monitoring and Event Management Services coupled with our Integrated Service Desk, helps to further enhance availability and truly maximize peace of mind, giving full accountability of the technical availability of your self-service channel to Diebold Nixdorf. Consider starting to build (or expanding) your off-premise fleet now: We suggest you take a closer look at our newest family members: the DN Series 230A and the DN Series 150D.

    1Nielsen IQ International Retail Banking Consumer and Technology Survey commissioned by Diebold Nixdorf.
    2RBR 2021, Global ATM Market and Forecasts to 2026.
    3Nielsen IQ International Retail Banking Consumer and Technology Survey commissioned by Diebold Nixdorf.

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