Advanced-Functionality ATMs: The Next Generation

by Isabella Fonseca,  Neil Katkov, PhD, March 6, 2002


Boston, MA, USA March 6, 2002


As the ATM industry suffers from declining transactions, banks are looking to leverage ATMs in new ways, using advanced functionalities to offset high system costs. Using ATMs as a one-to-one marketing channel for targeted upselling and cross-selling will be the most significant new trend. From fewer than 1,000 ATMs worldwide dedicated to one-to-one marketing in 2001, Celent Communications predicts this number will reach 80,000 by 2005.

In a new report, , Celent examines the current and future prospects for enhanced ATMs in four specific markets: the USA, Spain, China, and Japan. Each of these markets demonstrates strong potential for increased use of enhanced ATMs, although they vary widely in functionalities offered as well as in their strategic approaches. Advanced functions supported by currently available technology range from Web-enabled rich content to bread-and-butter banking functions such as check cashing and imaging.

According to

Neil Katkov, co-author of the report, "After years of focus on the Internet and call centers, ATMs are becoming a central channel in banks’ distribution strategies. The main factors driving the adoption of advanced functionality include declining transactions and fees, as well as an increased emphasis on channel optimization and targeted one-to-one marketing."

Isabella Fonseca, co-author of the report adds, "Although the development of advanced functionalities will depend on individual country demographics and technological advances, multi-channel integration will be essential to all successful ATM initiatives. Emphasis should be placed on integrating the ATM with other existing channels to ensure consistent data throughout multiple customer touch-points."

A Table of Contents is available online.


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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents


Boston, MA, USA  March 6, 2002

Return to report Abstract


  Market Overview 5
  Stages of Development 6
  Innovation Drivers 8
  Functionality Overview 9
  ATM Technology 11
US 13
  Market Overview 13
  Advanced ATM Functionality 16
  Selected Initiatives 17
  Strategy 19
  Market Overview 21
  Advanced ATM Functionality 23
  Selected Initiatives 25
  Strategy 26
  Market Overview 27
  Advanced ATM Functionality 30
  The Next Generation 31
  Market Overview 33
  Advanced ATM Functionality 36
  Selected Initiatives 38
  Strategy 39
  Future Trends 43

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