3 strategies to deliver customers a strong self-service banking experience

Self-service has become ubiquitous in how we engage in commerce, and banking is no different. Consumers want greater choice in how they engage — banking when, where and how they want.

These rising expectations for a strong self-service experience – along with community banks looking to improve efficiencies and optimize margins – have prompted the rise in and prioritization of the following strategies:

Embrace a shared utility model for self-service banking. Digital banking adoption and usage have been on an upward trajectory for years. An important distinction, however, is that digital-first banking does not mean digital-only, but rather digital everywhere – including integrated into physical touchpoints. As customers continue treating the branch as more of a place to discuss high-value topics and issues instead of a location for routine transactions, branch traffic is declining. This is why some institutions across the globe are considering a shared utility model, offering new ways to enable convenient self-service for customers while reducing the reliance on extensive branch and ATM infrastructure.

More financial institutions are plugging into a network with ATMs located in trusted retail locations, such as grocery, convenience/fuel and big box stores, to provide a way to fulfill everyday banking needs when a branch isn’t nearby or easily accessible. Increasingly, these terminals include cash deposit capabilities, incorporating more branch functionality into the places customers already live and shop. This provides a cost-effective, simpler alternative to building new branches in growth or legacy markets while still extending the institution’s presence out into the community and facilitating widespread access to banking services. Such an approach allows community and regional institutions to better match the scale and scope of larger bank brands.

Reimagining ATM support with ATM as a Service. ATM endpoints remain a critical component of a successful customer service strategy; however, the traditional ATM deployment model doesn’t always facilitate institutions’ ability to quickly innovate and react to market changes. The capital requirements, multiple vendor relationships, upgrade cycles and quickly evolving customer expectations that face institutions running their own ATM fleets can prevent these institutions from maximizing the full potential of this crucial self-service channel. Rising support costs, aging technology and difficulties attracting and retaining specialized talent can present additional challenges.

One response that has effectively mitigated these challenges is outsourcing partial or complete management of ATM operations, from ownership to management, via an ATM as a Service model. This strategy allows banks to boost efficiencies by reallocating resources and employee time that no longer must be spent on ATM distribution, installation, maintenance and cash management. Investment dollars and employee time can instead be focused on more strategic initiatives, like growth plans and strengthening customer relationships.

The ATM as a Service model also offers a more predictable cost structure, strong security and compliance support and greater availability. The right partner can help quickly roll out new features and functionality as technology advances, keeping pace with customer demands and creating an experience that rivals or exceeds that of large bank brands.

Incorporate greater automation in the branch. Another strategic way to optimize an institution’s physical footprint and reduce costs is to implement smarter branch technology. A wide variety of tasks can be efficiently completed on Interactive Teller Machines (ITMs) via self-service, for instance. This includes cash withdrawals, transfers, check deposits, statement generation, balance inquiries, ID scan and even more complex teller-assisted transactions, such as account openings and loan initiations.

More banks are deploying ITMs in locations where a larger physical footprint isn’t necessary and leveraging these intelligent machines to extend branch hours. According to Forrester’s ITM Sentiment Study conducted with NCR, 41% of financial institutions have improved efficiency between 10-20% since introducing ITMs, and over half have seen a reduction in session wait times.

Banks are looking to evolve their branch strategies, often opting for smaller, digitally optimized locations, making more advanced self-service technologies crucial to boost efficiencies, innovate more quickly and deliver consistent customer experiences across all touchpoints. Digital and physical channels are merging, prompting banks to look toward more simple, flexible and automated technology to power and unify what were previously separate experiences.

Self-service banking is taking center stage, helping community banks to make the most of their physical footprints without sacrificing meaningful interactions and the human touch these bring. Those who embrace rising trends, such as the shared utility and ATM as a Service models will be well positioned to offer exceptional experiences while simultaneously operating more efficiently.

Stuart Mackinnon is the Chief Operating Officer of NCR Atleos.