The future of ATMS: AI is setting a course for the future

The first ATM was invited by John Sheppard-Baron at a North London Barclays bank branch in 1967. After this invention in Europe, the entire world became interested and the ATM was brought to the US. The first ATM in the US was brought by Donald Wetzel in 1969 in New York. Since that time, the ATM has become a common sight on main streets, public businesses, small businesses, retail locations, gas stations, and rural areas. Modern ATMs process digital banking and contactless payments, allowing customers to withdraw cash, make transfers between accounts, obtain mini statements, make cash advances from credit cards, or deposits. When it comes to a quick and seamless customer experience, ATMs allow customers many added conveniences.

Another benefit to ATMs since the COVID-19 pandemic was the option for contactless banking. ATMs continue to play an important role in allowing customers freedom and flexibility to make banking transactions or get cash. In fact, according to ReportLinker, the ATM industry continues to grow on a global scale, with the number of ATMs globally expected to reach 3.1 million by 2026, up 1.3% from 2.8 million in 2021. Since 2017, the global supply has increased 2.6% each year. In 2021, China had the largest number of ATMs with 1.3 million units, followed by India, Russia and Brazil. China's ATM count grew 6.5% annually since 2017, while Belgium's decreased by 5.9%. In 2022, the global ATM market size reached US$ 22.2 Billion, and is projected to reach US$ 29.6 Billion by 2028, exhibiting a growth rate (CAGR) of 5% during 2023-2028.

What is driving the ATM industry growth? Growing urbanization and digitalization, in both the emerging and developed economies throughout the world, is the primary factor driving the growth of the ATM market. The key features of ATMs, including 24x7 cash availability, along with options for funds transfer, bill payments, options for mini statements and cash advances, have fostered widespread acceptance and use across the globe. Additionally, advances in technology and improved security mechanisms, including biometric authentication and activation of the One Time Password (OTP) to prevent fraudulent transactions, coupled with the introduction of NCR, or talking ATMs, for individuals with special needs, are also facilitating the growth of the market. Furthermore, a continuous and thriving tourism industry is another significant factor driving the market in many areas around the world. In addition, ATMs provide customers the added convenience of easy access, currency exchange options for international tourists, through a feature such as Dynamic Currency Conversion (DCC).

In addition, as the COVID-19 pandemic changed the ways customers engage with financial institutions, ATMs play critical role to providing customers easy access to bank transactions, while also skipping long lines at the bank, and receiving bank employees from becoming overloaded.

Most customers are regularly taking advantage of alternative ATMs, preferring ATM functionality and services, a recent survey found that access to cash remained a top priority in 2022, with one in five millennials and Gen Xers aware of their financial institution’s product offering or services via the ATM.

How artificial intelligence (AI) is contributing to ATM industry growth

Keeping ATMs in service and operating smoothly is now more important than ever. Additionally, as advancements in artificial intelligence (AI) are unlocking new capabilities in ATM maintenance is easier. With AI technology, detailed technical data reporting can be continuously collected from sensors and data points to become analyzed within cloud-computing platforms. This data collection process allows businesses a much more convenient way of maintenance and upkeep.

Additionally, AI can help track and monitor ATM lifecycles. Tracking lifecycles can often provide a precise picture or “personality profile” for every single ATM in operation. The AI-driven approach can also support a transition from reactively managing ATM maintenance, such as contacting service when something goes wrong vs. implementing a more predictive, proactive service model to minimize and even prevent outages and incidents. By analyzing data patterns, trends, indicators and other data points produced by AI, potential ATM breakdown and failure can be identified. With data tracking maintenance, ATM service activities can be scheduled during times of low customer traffic to avoid interruptions in daily business.

Further, AI technology allows business the ability to more accurately determine solutions to potential problems that have caused outages, or threaten ATM operations. By reducing ATM failure rates, business can then better address the pain points to provide more consistent service to their customers. Additionally, ATM operators can provide a more reliable service and become more prepared to adapt and improve as market conditions continue to evolve.

Some of the ways artificial intelligence (AI) improves ATM maintenance

• Faster & Robust Repair- By equipping ATMs with AI, customers experience benefits from more proactive maintenance and remote repair capabilities. AI also allows the individualized monitoring and maintenance of ATMs to shift to allow more service options that may not be readily available with traditional services. AI optimizes the entire repair process for ATMs allowing for faster turnaround and decreasing the overall time involved in maintenance services. ATM operators can updated remotely, but can also self-diagnose issues in seconds, and in many cases, fix them without human involvement.
• Improved Service by Preparing Cash Flow - ATMs driven with AI software integrates an exclusive database that effectively identifies the key factors closely associated to cash demands of a specific ATM based upon usage trends.
  The ATM AI data contain variables that establish the correlation between cash demands in order to manage cash flow efficiently. The collected data can more accurately forecast peak cash withdrawals throughout the day, and groups of days each month, accounting for various scenarios such as holidays, community gatherings, emergencies, and even weather patterns. ATMs driven by AI also analyze cash withdrawal patterns continuously to eliminate and reduce the chances of situations of idle cash or depleted cash. By employing accurate predictive models, AI can more efficiently manage the flow of cash. By implementing this proactive approach to managing cash flow, more effectively prevents the accumulation of surplus cash in ATM drawers and eliminates idle cash situations.
  
  As ATMs are required to be “always on” and accessible for customer use, it is critical that they function properly. A better functioning ATM will keep service interruptions to a minimum. By reducing the rate of ATM failure and remaining in service, ATM operators are better positioned to address the pain points of today’s customers, and to meet consumer demands. Overall, improving service cuts down on expenditures and helping with cash flow by driving down costs for servicing, along with maintaining areas where access to cash is critically lacking. AI technology potentially offers operators the ability to smartly apply AI-driven solutions to meet the needs of their ATM fleets to ensure they are providing the best possible services to their customers and reducing wasted expenditures to save on the bottom line.
  
  
• AI-Powered ATM Chatbots - In addition to revenue savings, AI is changing ATM utility through improved customer conversations through chatbots. The application of AI-powered chatbots has extended to the realm of ATMs, which help to efficiently streamline and optimize the cash distribution process. AI-empowered ATMs now feature chatbots that can help process transactions, answer questions, or make suggestions.
  

What is a Chatbot?

A chatbot is a software program presented on the ATM applications, which is used to stimulate a more helpful and natural conversation with a consumer by both written and voice formats. A chatbot is used to automate specific tasks. A chatbot also provides a user interface that is connected to different data sources through APIs to provide services in real-time. It is one of the more interactive, promising, and trending communication mediums between humans and machines (in this case an ATM). AI can help identify the supply plans, thus improving multiple KPIs simultaneously. Identifying the needs of the ATM can help reduce the number of trips for loading and unloading cash without affecting cash availability in the ATM.

ATM Chatbots represent a new shift in the customer service paradigm. Customers that prefer to chat, and no longer want to call businesses or banks for routine and mundane tasks, use automated tools, often getting more done in less time. Chatbots do not require downloading and multiple functionalities can take place in the same chat. Overall, chatbots may create a faster, more convenience experience for consumers.

ABOUT OREGON ATM

Oregon ATM has been active in the ATM and payment industries for over 15 years. As a local, family owned business, we genuinely care about our clients, and we understand the laws and complexities around banking and payments, which are constantly shifting, changing and updating.

We are not only well-versed in existing regulations, but also stay actively involved in keeping up with regulations. Our experience provides our clients peace of mind with knowledge they can trust, so they can save valuable time and spend resources focused on growing their own businesses.

We understand that in the current market, it’s crucial for all businesses to have access to cash solutions – and that makes reliable ATM services an important part of operating your business. Oregon ATM helps business explore the ATM services to support their business goals. Whether a business is exploring ATM solutions, looking to buy, lease or profit-share, Oregon ATM works alongside business owners to help find the  ATM solutions that makes the most sense for a specific business. In addition, Oregon ATM has access to any brand of ATM, which provides businesses added flexibility and resources best suited to the business needs.

Oregon ATM offers ATM options for businesses of all types and sizes.

• Cashless ATMs - Cashless ATMs allow customers to use their bank cards instead of cash. Customers still put their card into a card reader, the money gets taken out of their account, but the money goes to the store.
• Zero Obligation - The zero obligation ATM allows your business to be completely hands off. We will place an ATM at our own cost and replenish it with cash as needed. All maintenance, repair and upgrading of the terminal will be handled by us. Your business will still capture a portion of each surcharged transaction placed at the ATM.
  
• Lease or Rent an ATM - Leasing an ATM is cheaper in the short-term than purchasing an ATM. Short-term ATM leases are available if you would like to trial the machine for a few months and see how much your customers love it.
• Buy An ATM - When you buy an ATM, it’s a one-time purchase where you receive 100% of the fees the ATM generates. Perhaps the biggest benefit of owning the ATM machine is that you will have final say on its location and the fees you charge your customers to use it.
• Profit Share ATM - Oregon ATM's Our Profit Share program is specifically designed for business owners who prefer no startup costs. We provide the ATM Machine and your business provides the cash.