Banks push the envelope with new ATMs
Changes in technology mean savings for financial institutions, convenience for public
By Robin Sidel and Ian McDonald
The Wall Street Journal
In Russia, a consumer can put rubles into an automated teller machine and get U.S. dollars. In Brazil and Venezuela, the machines print checks. And banking customers in Indonesia can use an ATM to schedule and pay for the ritual sacrifice of a goat.
In the U.S., ATMs don't do any of those things. Despite a slew of predictions a few years ago that U.S. consumers would use ATMs to apply for loans, buy ski-lift tickets and receive coupons for soft drinks, today's bank machines pretty much just spit out greenbacks because that's the service U.S. bank customers typically want.
The biggest makers of ATMs are trying to sell a new generation of machines. Instead of razzle-dazzle features that turn the machines into mini-media centers, they allow customers to do something far less glamorous: deposit cash or checks without an envelope.
Unlike traditional machines that swallow an envelope and require the customer to key in the deposited amount, the new versions read checks and count cash. They can display an image of the check on the screen and print an image of the deposited check on a receipt. Bank executives literally "oohed" and "aahed" when a representative of ATM maker NCR Corp. demonstrated the technology at an industry conference last fall.
In addition to looking slick, the new machines ultimately could save banks millions of dollars by scanning images of the checks and eliminating the need to haul physical pieces of paper around the country for processing. Consulting firm TowerGroup, a unit of MasterCard International, estimated last year that envelope deposits made at ATMs and by tellers cost about $1.70 each to process, while electronically scanned versions cost 40 cents. The checks also clear faster for customers.
Eliminating the envelope also is expected to reduce the number of fraudulent transactions that occur when swindlers claim to have deposited money but merely feed an empty envelope into the machine. "Deposit automation will have huge and positive ramifications for banks and their customers," says Tom Swidarski, chief executive of Diebold, another big ATM maker.
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