Expand Functionality of ATMs

Blog: Branches Are Getting Smaller, So Let Your ATMs Do More

May 21, 2024  |  JEROME AMARA

Financial Institutions (FIs) are reducing their branch footprint. Partly due to reduced costs: space is expensive, and modern branches don’t need to be as big as many transactions are now taking place digitally. But reducing the size of branches also supports FIs’ journey towards becoming more sustainable, as smaller structures leave more space for green areas, and they consume fewer resources for heating and electricity on a daily basis. Lastly, new branch concepts are becoming more popular with more open concepts where the bank branch becomes a community hub including co-working spaces, a coffee shop, or similar communal spaces. While the overall building may stay the same size in this instance, the space allocated for banking itself is reduced.

So, branches are becoming smaller but FIs still want and need to retain a connection with their customers in the real world. This is critical as consumers expect the choice to transact via physical channels should they choose to do so1. The question is how can FIs continue to offer the same great experience through their physical channels but in a smaller space? The ATM is taking on a more prominent role and performing more advanced transactions. Thanks to modern self-service technology transactions like over-the-limit withdrawals, video teller interactions, onboarding and know-your-customer can be migrated away from the teller to the self-service zone, reducing the need for space in the branch.

To be able to do so, an ATM must fulfill a few requirements both from the hardware and the software side.

Some advanced transactions may require additional components that are not part of a standard configuration. Consider a new customer who still needs to identify themselves before they can open an account. By including a passport and/or ID scanner, you can reliably identify them onsite.

The DN Series® offers innovative devices that can be ordered with a selection of additional components to enable advanced transactions in the self-service area. How exactly this looks varies: from the addition of a side pack on a standard ATM to our dual towers that can function as a branch in a box or the inclusion of a dedicated kiosk device.

But the best hardware won’t make a difference, if the software is not capable of enabling more complicated transactions. To leverage the full power of modern hardware solutions customers will need to overcome any dependencies and restrictions in their software environment. Advanced transactions will require support from the terminal application as well as on the server side. It is not enough to look at hardware and application software in isolation; it will require to looking at the entire ecosystem. DN covers that end-to-end ecosystem with Vynamic® Software.

Vynamic Software is a powerful portfolio that enables FIs to eliminate friction to transform the ATM user experience and banking operations. The software portfolio helps financial institutions modernize the ATM channel quickly and cost-effectively while allowing for continued evolution. Its bundled product families elevate ATM and branch channels, consumer experience and back-end operations.

  • The next generation of Vynamic Connection Points will provide new levels of connectivity, integration, and interoperability, accommodate more complex interactions, and deliver new revenue-generating transactions faster.

  • Vynamic Security offers a multi-layered security approach to detect attacks in real time and maintains compliance to industry standards, providing more protection of consumers’ personal data as well as an institution’s reputation and assets.

  • Vynamic View, our availability management tool, enables accurate fault detection and qualification in real time; while advanced automation ensures incidents are fixed earlier, with 35% resolved remotely in a matter of minutes.

  • Vynamic Transaction Middleware [TM] is our underlying cloud-native, micro-service architecture. It powers several of the Vynamic products, including Vynamic Transaction Automation, Vynamic Acquiring and Vynamic Issuing and enables new functionality utilizing low-code technology.

  • To put it in a nutshell, the ATM will be a key factor in offering high-value transactions, future-proofing the branch as the footprint shrinks. To do so efficiently and conveniently, it is imperative to look at any solution you may consider end-to-end. With our DN Series devices and Vynamic Software, Diebold Nixdorf offers integrated solutions that can enable even complex transactions at the self-service channel. To find out more, contact your DN representative today!

    1Nielsen IQ International Retail Banking Consumer and Technology Survey commissioned by Diebold Nixdorf, 2021.

    How are bank branches impacts by current trends?

    Listen as Jerome Amara discusses current trends that are pressuring banks to reduce branch footprints while maintaining customer connections, leading to more advanced functionalities in ATMs.


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