The rise of electronic transaction channels has transformed the banking industry, making branches more high-tech and sparking new opportunities for ATMs. Many financial institutions plan to expand or replace their aging ATMs with the goal of providing a more engaging customer experience along with greater security. Such are the findings of a national survey by Cummins Allison, The Changing Face of the ATM Market.

According to the report:

• Over 80% of survey participants view online and self-service customer channels (internet, branches, ATMs and smart phones) as very or extremely important.
• ATMs are viewed as a valuable competitive tool and a critical success factor
• 58% of respondents said their ATM fleet was 5 to 10+ years old
• 58% plan to add or replace all or part of their existing ATM fleet in the near term

Financial institutions are considering new ATM capabilities to help them:

• Enhance customer interaction (electronic receipts, touch screens, target marketing, remote teller assistance, video conferencing, contactless card support, dispensing items such as stamps)
• Comply with new industry standards and liability guidelines (EMV, Windows 7, PCI, ADA)
• Improve security (cameras, anti-skimming devices, biometrics)
• Streamline operations (deposit automation, integration with other banking channels such as mobile)