Deposit Image ATMs Answer Customer Demands

Monday, August 13 at 02:00 PM
Category: Personal Finance

Technology constantly continues to mold how you manage your day-to-day finances. That's why in today's age, customers from all over are demanding more convenience and quicker access to managing their money.  Deposit image ATMs are a popular solution to this demand.  The release below discusses this topic further, providing solid numbers and interesting insight as to why this piece of technology has become so popular.

Faster processing, faster access to funds and the convenience of anytime banking are among the reasons customers are increasingly using and demanding access to automated teller machines, or ATMs, that have deposit image capture capabilities, according to financial industry research. Modern convenience is not alone in driving customer demand; customers are using these relatively new devices for an old-fashioned reason, the return to cash as a basic budgeting tool.

Deposit image ATMs, or automated deposit machines, allow customers to feed checks and cash directly into the machine without filling out a deposit slip or using a deposit envelope. The machine tallies the deposit and prints an image of the checks and total deposit amount on a receipt for the customer’s records. Information about the deposit is then transmitted electronically to the bank, speeding up the processing of the deposit and reducing the need for immediate pickup of the paper items.

Customer demand and financial institutions’ need to control costs is driving growth in the number of ATMs world-wide, according to research published by ATMMarketplace.com, an industry website.  In the face of such growing demand, banks on the national, regional and community level are increasingly changing over their ATM networks and machines to deposit automation systems.

Arvest Bank operates 305 ATMs within its four-state system and is equipping the network with a large number of deposit image ATMs.  Over half of the ATM fleet now has deposit image capabilities.  It is expected by early 2013, three out of four Arvest ATMs will take imaged deposits. Of the current Arvest ATM network, 136 are currently deposit image capture machines and another 90 are to be upgraded by the end of the first quarter of 2013.

Customer response to the new technology has been positive and use of the new machines has grown sharply.  Once a customer uses one for the first time, they are hooked by the ease and convenience these machines provide. In May of 2012, about $12.02 million was processed through deposit image ATMs at Arvest, an increase of 104 percent over the $5.87 million processed in those same Arvest ATMs in May 2011.

The worldwide installed base of ATMs is predicted to reach 3.1 million units by 2015, up from an estimated 2.2 million machines in 2009, reports Global Industry Analysts, Inc., a San Jose, California, -based market research publisher. Of that 2009 number, more than 464,000 were deposit automation terminals, a 44 percent increase over 2007 totals.

Nicole Sturgill, research director of delivery channels with Needham, Massachusetts, -based research firm TowerGroup, said there were approximately 60,000 deposit image ATMs of the estimated 210,000 ATMs in the United States in 2011.

The number of deposit automation ATMs is expected to triple by 2020, according to Retail Banking Research, a financial data research company in a 2011 white paper published as a supplement to American Banker.

That white paper states the growth of deposit automation ATMs comes in conjunction with a corresponding growth in the use of cash, likely a result of the economic downturn. Mike Lee, CEO of the ATM Industry Association, said a huge public loss of confidence in credit resulted in masses of citizens turning to cash, which regained its effectiveness as a time-honored household budgeting tool.

The Federal Reserve Bank shows that the use of cash in the United States has grown by 3 percent each year from 2007 to 2009 but jumped to 4 percent in 2010 and to 6 percent in 2011.

In the face of such growing demand, banks on the national, regional and community level are increasingly changing over their ATM networks and machines to deposit automation systems.

Retail Banking Research estimates that ATM transaction growth, measured at 62 billion transactions in 2009, is expected to top 94 billion transactions by 2015.
 

Tags: Press Release, Technology
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