As evidenced by a flurry of mergers and acquisitions, elevated branch closures and strategic decommissions, financial institutions are in consolidation mode. This, of course, isn’t in response to their financial well-being — it’s quite good, in fact — but rather evidence of the digital transformation and shifting consumer habits in retail banking. Indeed, the pace of these changes intensified throughout 2020 due to the COVID-19 pandemic and the resultant lockdowns.
Locations aren’t the only thing coming in smaller, more all-in-one packages. The same can be said for their consumer facing technology, in the form of interactive teller machines paired with cash recycling capabilities. They’re becoming a welcome and more common presence.
ITMs are hitting all the right notes for FIs
As we’ve documented in this space at length in recent months, interactive teller machines aren’t the wave of the future; they’re the here and now. Thanks to video-based tellers and core integration that facilitates a comprehensive transaction set (e.g. opening accounts, closing accounts, bill pay, check depositing, fund transfer, etc.), ITMs have increased efficiency for users and often provided substantial cost savings for FIs. That’s true from both an operational efficiency as well as a savings per transaction perspective, potentially costing cents on the dollar when compared to a traditional ATM. In effect, ITMs are ATMs, only much better, faster, powerful and more intuitive.
Now that ITMs are gaining traction in terms of overall market presence, they’re also replete with more capabilities, cash recycling being among them.
“Cash-in-transits (CIT) visits have dropped by between 10% and 20% for ITM/cash recycler users.”
Speaking at an annual conference held by the ATM Industry Association, QDS CEO Sean Farrell noted that many credit unions and banks have experienced the benefits of ITMs with cash recycling in the fairly limited time that they’ve had them in place. Based on his research, FIs who’ve made the investment have seen their cash-in-transits (CIT) visits drop by between 10% and 20%, while service calls have plummeted between 25% and 30%. Fewer service calls, Farrell noted, is attributable to reduced error rates.
“So recycling, in the right environment, drives less interaction from staff or CIT with machines, leading to greater uptime, and allowing the device to serve a wider client base beyond just consumer/retail transactions,” Farrell explained, as reported by ATM Marketplace. “The ability for the device to handle small business deposits, in extended hours formats, is a welcome [addition] of functionality to our banking clients.”
ITMs help to minimize workloads for tellers
While many banking customers enjoy the interaction they receive from an in-person teller, convenience and speed are their ultimate desires. Since many of their banking needs can be done remotely and on their own, ITMss enable FIs to strategically utilize their employees to provide services that require more thoughtfulness and customization, as is the case with wealth management. According to a 2019 Gallup polling, less than 15% of customers agree with the notion that their bank is mindful of their financial well-being and under 12% say their FI helps them reach their financial goals.
ITMs with cash recycling capabilities have allowed FIs to become more efficient by taking the busy work off of their hands so they can hone in on personalization. As Farrell referenced at the ATMIA Conference, these terminals can cut down on tellers’ traditional transaction tasks by up to 75%.
Tyler Beck, senior vice president and chief operating officer for the southeast-based Five Star Credit Union, said at the conference that his FI has saved hundreds of thousands of dollars in labor savings by offloading tellers’ work to ITMs, ATM Marketplace reported.
Here are a few of the ways in which cash recycler technology within ITMs can delivers more convenience, efficiency and quality for your financial institution:
- Reduces the number of times ITMs must be restocked with cash
- Automatically counts, sorts and reuses cash for seamless withdrawals in a variety of denominations
- Fewer armed security visits needed, thus minimizing crimes of opportunity thanks to fewer cash exposures
Russ Schoper, an ATM industry analyst at Business Development International, Inc., told American Banker back in 2019 that larger banks were the first to latch onto combined ITM/cash recycler technology; it was only a matter of time before smaller FIs followed suit.
That time is now. If you’re looking to dial up your delivery of the very best of what your bank has to offer, all while diminishing your costs, ITMs with cash recycling is the answer. BranchServ Convergint has several next-generation units that maximize productivity, security and reliability, including the Hyosung MX8300I, MX8300T and MX8300D.
For more information or to schedule a demonstration, contact us today.