Archive Site news Career Contacts
Go To The Main Page
Lit Rus

06/21/2018  How to make your ATMs earn

The maintenance cost of ATMs network could reach hundreds of thousands dollars annually, thus each bank chooses its own strategy to optimize these expenses. Some banks save by cutting the number of newly placed self-service devices and preferring to provide more services through an Internet bank and motivating clients to make more cashless payments. Other banks, on the contrary, perceive the self-service channel as a promising source of income: their logic is simple - we can spend our money and put up with it, or invest in self-service devices that are able to pay off.

The most obvious way to use ATMs with a benefit to your business is to charge customers a service fee, which will depend on the type of service provided and many other factors. For example, in Poland, the cash withdrawal can cost 3-4% of the amount, in Spain the client can pay up to 6%, and in Russia - up to 400 rubles (6.5 US dollars).

The system’s opacity of such charges misguides people and forces them to refuse to use of "foreign" ATMs, which greatly reduces the availability of the self-service channel for customers trying to save money.

For this reason, banks and independent ATM network operators often avoid direct fees for using devices and providing additional services instead. This way of earning looks much more justified from the point of view of the end user who can get a unique service using the devices of a particular company.

1. Use of payment services on an ATM

One of the ways to monetize the work of self-service devices is to provide additional services for customers. The combination of the standard functionality of the ATM with the possibilities of payment kiosks allows the end user to pay for utilities and telecommunications services, state duties, fines and various goods. In addition, such devices provide more opportunities to perform operations with bank accounts or money orders.

The bank can build mutually beneficial relations with suppliers of various services, offering to use its fleet of devices as a channel for interaction with customers and retaining commission fees in accordance with the concluded agreements.

A wider range of services and a low service charge compared to competitors can be an important competitive advantage of the ATM network. In some cases, banks and independent operators even manage to adopt functions for receiving payments from units of various state and commercial organizations (hospitals, notary offices, tax services, police departments).

Advanced solutions offer the payment acceptance structure and download of a different analytics on the conducted payment transactions. For example, the solution Payments.iQ allows you to assess how profitable for an ATM network operator a particular service is. This makes possible to adapt the set of provided services and to adjust the essence of the offered format itself.

 2. Currency exchange at ATMs

A global survey of tourism conducted by several European institutions showed that 6 out of 10 people traveling to other countries on a private or business trip face the problem of cash exchange. Often, the reason for this lies in the inappropriate appetite of the owners of exchange offices located at airports and railway stations. About service fees in some countries, charged from hapless tourists, in the size of a quarter or even a third of the amount exchanged, is possible to tell legends, but unfortunately, it has very true meaning. Nevertheless, currency exchange is a function that is relatively easy to implement on modern ATMs. Moreover, the end customer can receive the necessary funds not only at the airport or other places of mass congestion, but at any outlet where these funds may be required. Thus, the level of availability of the service will be increased several times.

Such functionality expansion of self-service devices requires the implementation of a specialized IT solution. In particular, the deployment of FCX.iQ system allows the operator to set the value of the service fee and the availability of exchange of certain currency pairs for each network device, depending on the level of demand for a particular service. This allows turning every ATM into a compact and efficient currency exchange office that does not require any special care and maintenance.

3. Additional advertising opportunities of the ATM

However, the profitability of self-service devices can be increased even without any users’ fees. In order to do this, is enough to realize that in the modern world ATMs are excellent platforms for placing targeted advertising. Nowadays, the world has installed more than 3 million ATMs, each of which can display advertising messages, providing users with information about banking and other products. Many banks and independent operators of ATM networks even install additional screens for their devices to demonstrate their own or partner’s advertising. By the way, the advertising screens are dynamic and can vary depending on the scenario of the client's operations with the self-service device, including the possibility of interaction. Thus, the advertiser can count on a sufficiently deep involvement of the client in the essence of the advertising offer, which is especially important for communicating the value of the product and service.

The use of self-service devices opens up new opportunities for the implementation of the Direct Marketing strategy, since the client can be identified according to the various parameters. This allows banks to focus their marketing activities on the most important customers.

Diebold Nixdorf as the world's largest supplier of self-service systems offers for these purposes the Vynamic Marketing solution, which is able to centrally manage the placement of visual advertising messages and obtain statistics on coverage, segmentation and other information on customer interactions.

Anyway, the attitude toward ATM network as exclusively the expense is becoming outdated. Financial institutions that remain faithful to the development of their self-service channel are getting very effective tools to increase the profitability of the network of self-service devices, using an additional driver to meet the still actively growing demand for cash. 

Did you like our material? Subscribe to our regular newsletter to receive the most interesting topics and exclusive offers from BS/2.

  06/20/2018  BS/2 maintains 13,000 POS-terminals in Georgia
  06/15/2018  How to choose the best Automated Teller Safe? Top-5 Teller Cash Recyclers
  06/11/2018  The Focus of the Diebold Nixdorf Partner Summit Is an Individual Approach to the Client
  06/07/2018  BS/2 Was Awarded for Successful Projects Implementation in Azerbaijan
  06/05/2018  PENKI Offers a New Services Package - Mobile Internet
  05/29/2018  Why Vynamic™ Security Suit is more effective than traditional antiviruses
  05/24/2018  ASHBURN International is the First in the Baltic States to Offer New Ingenico Products
  05/17/2018  5 tips how to organize professional service of banking equipment using specialized software
  05/11/2018  BS/2 Is Recognized As the Best Export Company of the Year
  05/10/2018  TransLink.iQ Presentation to Pro?redit Group
  05/09/2018  Self-service Cash Collection: How to use Automated Deposit Machines in banking and retail
  04/24/2018  BankExpo 2018: A Breakthrough in the FinTech Development in Uzbekistan
  04/20/2018  Investing in your own peace of mind: how video surveillance solutions help ensure banks security
  04/18/2018  Cash Management.iQ: estimating the price of CIT operations
  04/16/2018  Innovative Banking Technologies and Equipment at BankExpo 2018
  04/12/2018  The present-day future. 3 myths about video banking
  04/10/2018  Representatives of ASHBURN International visited the largest single national processing center in Uzbekistan
  04/05/2018  ASHBURN International Invested Over €1m in Its POS Terminal Network Upgrade
  04/05/2018  EcoVadis Silver Rating Granted to BS/2
  04/04/2018  TransLink.iQ Introduced in the UK
  03/15/2018  The BS/2 installed first ATMs in Latvia supporting contactless cards
  03/15/2018  The World's Largest Software Developers Laid Foundation for Common SSL Certification Standards
  03/12/2018  Ingenico Introduces Innovative Payment Solution for Small and Medium-Sized Businesses
  03/09/2018  Over €2m Invested in Penki Network
  03/08/2018  In search of the perfect POS-solution. Penki Kontinentai Group visited EuroCIS 2018
  03/06/2018  How to protect ATM from jackpotting: Vynamic Terminal Security
  03/01/2018  4 upgrades that made ATMeye.iQ the best solution for ATM video security in 2017
  02/27/2018  ATMeye.iQ Installed in Vietnamese Major Bank’s ATMs
  02/22/2018  BS/2 among the Strongest Lithuanian Companies
  02/21/2018  "Internet today it’s an ecosystem that stimulates your constant improvement", says Idrakas Dadašovas
  02/19/2018  Lithuania Participates in Digital Signatures and E-Business Security System Development
  02/15/2018  Penki Kontinentai Ties with Azerbaijan: Business and Beyond
  02/15/2018  Penki Kontinentai: €3.5 Million in Profit in 2017
  02/12/2018  Skynet Fiber Optic Internet Provider Becomes Penki
  02/09/2018  BS/2 participated in U.S. Largest Banking Technologies Conference
  02/08/2018  Looking Into the Future: Glimpses from NRF 2018 Retail's Big Show
  02/07/2018  Penki kontinentai and Farnell Discussed Prospects for Cooperation in Belarus
  01/30/2018  BS/2 Becomes ATM Service Market Leader in Kazakhstan
  01/24/2018  ATM Terminal Security Issues Discussed in Vilnius
  01/18/2018  BS/2 Georgia Staff Trained at Ingenico
  01/11/2018  ProfIT Expands Its Services To Video Surveillance and Cloud Video Storage
  01/10/2018  Penki Kontinentai Develops Business Links with Uzbekistan
  12/22/2017  Our Cooperation’s Main Task Is the Creation of Solutions for Specific Business Tasks, Says VisionLabs CEO Khanin
  12/15/2017  Another Gold Medal for ATMeye.iQ
  12/14/2017  Connected Commerce: a Common Future for Banks, Retailers and Customers
  12/05/2017  Penki Kontinentai Presents One Team, One Group Campaign
  12/01/2017  BS/2 and VisionLabs introduce the next generation of interbank services
  11/21/2017  International Conference of Banking and Retail Technologies IN TOUCH BAKU 2017
  11/14/2017  Bankers and Financiers Competed For the BFI Tennis Cup For the 10th Time Already
© Penki Kontinentai 1996-2018. All rights reserved