Interactive teller machines (ITMs) are changing the way that financial institutions operate for the better. Use of an ITM provides more efficiency along with improved customer service, while saving money and space.
ITMs look like automatic teller machines (ATMs), but offer wider transaction functionality. ITMs are typically supported by remote video tellers or an integration to the CORE platform.
In ATM mode, these machines operate just like traditional ATMs. In ITM mode, the customer can perform almost any transaction they would make with a teller and has the option to connect with a remote teller, who is able to provide all the services of a traditional teller. The ITM teller interacts with the bank customer in real time.
Read more about ITMs in our free downloadable ITM Buying Guide. ITMs benefit both customers and financial institutions. Understanding these benefits help financial institution leaders decide whether an ITM is right for them. Here's what you need to know.
Benefits of Interactive Teller Machines (ITMs)
The benefits of ITMs can be overwhelming for bank managers and Credit Union leaders considering the possibilities. For those who are trying to reduce costs, improve efficiency, and improve client experience, ITMs are an excellent option.
1. Significant Savings Per Transaction
It's been said that a standard interaction between a traditional teller and a bank customer costs around $4.50 per transaction. A conservative estimate for the same transactions between ITM and customer cost between $.50 and $.70. That’s a savings of over 80%!
2. Increased Convenience
Banking hours don’t fit everyone’s schedule or lifestyle. With an Interactive Teller Machine, banks can extend banking hours with the live video feature, allowing customers to get a teller typically up until 8pm at night or even on the weekend.
3. Improved Operational Efficiency and Revenue Growth Opportunities
ITMs are easy to use and intuitive to most customers. The transition from an ATM to an ITM is easy to make, many customers do not require assistance or training. This allows your universal tellers to focus on building strong customer relationships and grow revenue inside the branch.
4. Innovative Advantage
Customers are drawn to institutions and other businesses that are innovative. Institutions that implement ITMs early on will have a competitive advantage over more traditional competitors that don’t innovate as quickly. Early adopters will be able to facilitate timely transactions and offer what today’s customer is looking for, convenience.
5. Increased Market Presence
ITMs can complete 80% to 90% of the transactions that a traditional teller does today. This enables banks with ITMs to do more for their customers in remote locations without the need to open a new branch. In general, you can deploy 15-20 ITMs for the cost of 1 branch location.
6. Increased Customer Satisfaction
Nothing is more satisfying to customers than a fast, efficient, and flawless banking experience. Customers appreciate banks that can meet their needs without forcing them to wait in long lines.
7. Increased Consistency
ITMs make few errors and are beneficial when trying to manage workload with available bank staff. ITMs allow a centralized video team, that can work together and ensure best practices are shared and standardized.
Is an ITM Right for Your Financial Institution?
Whether an ITM is right for your financial institution depends on a variety of factors. ITMs are not a one-size-fits-all approach to financial services. Size, growth trajectory, and brand identity are all factors that influence whether an ITM is right for your financial institution.
How many customers does your bank service in a day? Is growth just as important as the personal touch of a traditional teller? Who are your customers and what are their priorities? What are the vital goals for your bank?
Some banks, especially in rural areas, place priority on social interaction between customers and tellers. In areas where customers consist largely of retirees, the customer's priority may not be flexibility and efficiency. Knowing the customer base and what they want can help the bank meet those needs. Finding the right mix of technology and personal interaction can help a bank be successful.
Explore the Possibilities with QDS
For the right financial institution, ITMs save money, improve efficiency, and help the bank exceed the expectations of the customer. ITMs can also attract new customers and encourage innovation. For a bank with customers that prioritize efficiency and a flawless experience with the teller, an ITM can help attract new business. ITMs are an excellent tool for cutting edge businesses.
Is your financial institution looking for ways to innovate and attract new customers? Do you want your bank to expand and help more customers? An ITM may be right for you. To find out more about how you can best meet the needs of your customers, contact Quality Data Systems, or check out our free ITM Buying Guide.