Blog: Leveraging the Self-Service Channel to Deliver a Financial Institution’s Strategy

Maximizing teller transaction migration

FIs are on the journey of evolving the mission of their branches to profitable advisory hubs delivering greater value to customers. To do so, they are integrating technology and human expertise to foster deeper customer relationships and address their unique financial needs. They are investing in advanced analytics, artificial intelligence, customer relationship management systems and training to empower advisors with real-time insights and personalized recommendations on complex financial products and services. 

In this context, they need their self-service devices and software to enable as many typical teller transactions and functionality as possible while delivering a 360-degree, high tech and compelling consumer experience. Indeed, all business-as-usual transactions should be supported, but services such as foreign currency exchange, bill payment, loan payment or bank transfer should also be available. The benefit of this strategy is that directing the customer flow to the self-service channel helps displace transactions from the teller, allowing financial institutions (FIs) to optimize the efficiency of their branch employees. By minimizing the number of transactions and interactions they handle, employees can dedicate more time to building meaningful connections with customers. This enables them to focus on value-added activities, such as consultations and upselling.

Optimizing the space in branches

FIs need to reimagine branch layouts to maximize efficiency and enhance the customer experience. They want to reduce or eliminate the reliance on traditional teller counters and assisted transactional services and are redesigning branches to feature open floor plans, self-service kiosks, and digital touchpoints. By repurposing excess space for advisory services, they can create more engaging and multifunctional environments. 

They need devices that offer the highest capacity and functionality in the most compact footprint possible. This helps FIs reduce the number of self-service devices in branches, free up space in existing branches and open smaller, more cost-effective branches. For these reasons, FIs should deploy cash recyclers to offer both cash dispensing and cash deposit through a single device. They should also prioritize ATMs with high note storage capacity cassettes and dual cassettes that enable the offering of denomination choice to their customers.

Offsetting the reduction of a branch network through devices acting as the branch

FIs are completing strategic assessments of the number and location of branches to align with customer needs and market dynamics. They are leveraging data analytics and customer insights to identify low-performing branches and ensure that branches are strategically located to effectively reach target customer segments. This can lead them to consolidate or close some branches. However, by reducing their branch network, FIs can risk losing brand awareness and business from customer groups whose needs cannot be fulfilled exclusively via internet or mobile banking. 

FIs should leverage the market availability of multifunctional devices and software to ensure an ATM acts as a mini branch. Indeed, with the right combination of hardware functionality and software, an ATM can power most transactions traditionally delivered in a branch. Installing devices featuring an ID scanner, a sign pad and a handset can, for instance, support complex non-cash transactions such as onboarding, account opening and sign-up for loans. Hence, whenever a FI considers a location is no longer strategic, they can choose to replace a branch with one or more ATMs to maintain a brand presence and keep offering access to cash and banking services cost-effectively in that area with more flexibility compared to typical branch opening hours.  
For markets where cash usage remains very high, dual-tower devices bring a lot of efficiency.
Finally, wherever it makes sense, FIs should deliver a video on-demand service at the ATM where a customer service team member can support interactions such as customer authentication, approval of transaction exceptions or provide assistance for self-service functionality. 

Expanding geographic coverage through profitable off-premises deployments

The ATM is often the only contact consumers have with a FI and their brand in the physical world. Hence, a strong ATM network can play a key role in driving brand perception, increasing the loyalty of existing customers and acquiring new ones. This means that FIs need to optimize their geographic footprint. Highly visible, publicly accessible locations conveniently located in a dense employment or population area, have strong retail traffic drivers and/or are near major public transportation arteries need to be prioritized. High footfall usually means a high number of transactions and high profitability.  Rolling out off-premises ATMs, specially designed and built for this purpose, is also a cost-effective way to offer convenience to customers and deepen market coverage. Between 10 and 20 off-premises ATMs can be deployed for the same cost as building one branch.

Characteristics required from an ATM can vary based on the location where it needs to operate. You can select the right type of device (lobby, through-the-wall, drive up and outdoor weatherized) for the right place. When evaluating drive-up devices, ensure they have been tested extensively for ease of use from any vehicle. Security should also be considered prioritizing a device range that offers maximum protection to hook and chain attacks. Weatherized walk-up devices should also be considered as they can be installed in any surroundings and are ideal to expand geographical reach. They are specially designed to withstand extreme climate conditions, including resistance to extreme temperature ranges, dust, sand, rain and snow. Configuration should be defined individually for each device so FIs have the flexibility to offer the right type of experience and functionality for each location. They should go for a modular device family so they can choose to start small at some locations and add more functionality seamlessly and cost-efficiently later, once the business case for it is proven, continuously maximizing return on investment. Design, customization and branding options should also not be forgotten as a selection criterion, as an FI’s brand image will benefit from an attractive self-service fleet. Finally, catering for 24/7 monitoring and remote resolution is indispensable for any off-premises device. 

The self-service channel truly offers the opportunity to act as a strategic asset to support the delivery of any FI’s strategy. At Diebold Nixdorf, we are guided by our customers’ objectives when developing devices and software that truly support their needs and deliver the value required. Our extensive range of DN Series devices and components, together with the functionality provided by our VCP 7 terminal application software, make us a strategic partner for any FI in the world. Would you like to know more about how you can equip your self-service network to best support your retail banking strategic objectives? Let’s start the conversation. 

Click here if you enjoyed reading this blog and would like to discover how the self-service channel can be a true engine to maximize overall efficiency and improve the bottom line of your retail banking activities.