ATMs poised to do more than just dispense money
By Steven H. Pflaster • Bankrate.com

In the nearly thirty years since automatic teller machines were introduced by banks, ATMs have become more than just money dispensing machines.

Multifunctional ATMs are being introduced that allow consumers to do simple banking as well as purchase things such as postage stamps, phone cards, travelers checks, and even airline tickets.

For banks and ATM vendors the aim is to "fully integrate the ATM into people's lives, by putting them wherever people go, rather than people having to come to them," says Thomas W. Swidarski, marketing director for Diebold Inc., a leading maker of ATMs.

Swidarski and other industry experts say ATMs are becoming "smarter" and more capable of providing personalized service to customers. Indeed, a survey from NCR Corp., the world's leading supplier of ATMs, said consumers are clamoring for additional services such as event ticketing, coupons and Internet access through ATMs.

Companies are responding by churning out a new generation of ATMs that feature video graphics and easier to use touch-screens. The machines will also accept cash deposits and dispense money down to the penny.

ATMs will dispense image of deposited check
In an attempt to put more people at ease about depositing checks at an ATM, some machines will dispense an image of the deposited check printed right on the customer's receipt.

Some banks allow their customers to pay bills, arrange an interview for a loan, and even check out sports scores, weather forecasts or other local information.

NCR, along with CIBC, a large North American bank, has even begun selling movie tickets through some of their ATMs by using an Internet link that checks to see if a movie is sold out and can issue tickets.

Lisa Rossi, a spokeswoman for Wells Fargo Bank said its program to sell ski lessons and discounted lift tickets for ski resorts has met with "an overwhelming response," from consumers.

Banking services are even finding their way into convenience stores. Retail companies such as 7-Eleven are installing a new generation of ATMs that allow customers to do most of their basic banking.

ATMs to show up in unexpected places
Columbus, Ohio-based Bank One is also expanding beyond traditional locations by installing ATMs in Mail Boxes Etc. stores nationwide. Those ATMs will sell postage stamps and pre-paid phone cards in addition to providing banking services.

Diebold's Swidarski said that rather than having the same static ATM screen for each customer, "smart" ATMs will be introduced that "get to know you" by using the rich pools of data amassed through marketing and data mining.

For example, if you have a habit of always withdrawing $75 the new machine will remember that and accommodate you by putting that option on screen. If you don't own a credit card, for example, the machine will show you an ad for one.

ATM ads will run in video
Ads can now run in full motion video, changing throughout the day to target different audiences.

Obviously this is very appealing to advertisers since they are reaching customers who have their money in hand. A college student who uses the ATM late at night may see an ad for pizza, while a morning customer may be shown a breakfast sandwich.

Nissan Motor Corp. has already begun TV quality ads on ATMs in San Diego, and other large companies have expressed strong interest as well.

Swidarski said in Europe people use ATMs to participate in auctions and even make electronic donations to churches. In France and Spain, consumers can buy tickets to the opera to bull fights. In some Asian countries, ATMs can be used to print checks and automatically update a customer's passbook.

While the new ATM services are being lauded by many consumers, most bank customers say they would prefer machines that process transactions faster to cut down on long lines.

Consumers are leery
The more capabilities built into ATMs the more likely people hang around, possibly leading to ATM traffic jams.

Wells Fargo's Rossi said her bank is working to make transaction times remain the same.

"It's not like people will be standing there surfing the Internet at the ATM," Rossi said. "The bank will decide what will be shown on screen."

Swidarski, agrees, and added that he expects the number of ATMs and kiosks will increase to accommodate the higher demand. Functions will also vary according to location and time of day.

The new interoperability of ATMs opens up new security concerns for banks and ATM makers.

Keeping it secure through biometrics
Some companies are turning to advance security measures known as "biometric" technologies, that can identify a person by their unique characteristics such as fingerprints, eyes, face, or voice.

Earlier this year in New Orleans, Diebold, Keyware Technologies, and Visionics together showed off a recognition process that requires no hands, PINs or passwords. The customer simply approaches the ATM and a camera recognizes their face.

To provide extra security, the customer speaks a password into the microphone. If the computer recognizes the face and voice, the person is given account access.

"By integrating non-intrusive biometrics technology into the design of our products, we're providing a comfortable and reliable solution that will have a strong appeal for consumers," said Daniel J. Delaney, manager of corporate design services at Diebold.

Will consumers like biometrics?
But some critics debate that the use of biometrics might not appeal to all consumers. ATM makers are trying to balance intrusiveness with accuracy. For example, fingerprinting is the easiest method to administer, while iris scanning is the most accurate.

That's because voices, fingerprints and faces change over time but the iris always stays the same. Sensor Inc., uses technology developed by the U.S. military to scan a human eye via camera from a distance of up to three feet away. The company states the technology will do no harm to the eye being scanned, and they have the backing of key players such as J.P Morgan and Citicorp.

But don't expect to see a massive rollout of biometric technology any time soon.

Swidarski believes the technology is still too expensive and untested, and will probably be that way for another three to five years.

-- Posted: March 2, 1997