Interactive Teller Machine Features and Implementation Guide

Interactive teller machines (ITMs) are changing the way we bank, offering a more convenient and personalized experience.

With the ability to perform tasks such as depositing checks, transferring funds, and even opening new accounts, ITMs are becoming increasingly popular.

In fact, some ITMs can even offer video conferencing with a live bank representative, making it feel like you're getting face-to-face service.

This feature allows you to get help with complex transactions or questions, making the banking process feel more approachable and user-friendly.

An ITM, or interactive teller machine, is essentially a "branch in a box" system that uses a combination of touch screens and video technology to offer a virtual version of the in-person banking experience.

You can walk up to an ITM, press begin, and start a video conversation with a live operator based anywhere in the world. This operator functions just like a bank teller inside a normal bank and can perform a variety of services for the customer.

ITMs can replace traditional banks entirely or be placed alongside a larger physical location with live staff inside to handle more complicated requests.

Some banks also like to keep an ITM open outside of normal banking hours to give customers more flexibility.

Interactive teller machines (ITMs) are changing the way that financial institutions operate for the better. Use of an ITM provides more efficiency and cost savings.

By implementing ITMs, you can reduce the average cost of helping a customer, which can drop substantially due to location-independent tellers. This is a significant advantage for financial institutions looking to optimize their operations.

ITMs can improve the branch experience, making transactions, account openings, and customer service more convenient and efficient. As a result, customers are more likely to have a positive experience.

With ITMs, you can reduce the labor cost associated with traditional banking, allowing your financial institution to allocate resources more effectively. This is especially beneficial for institutions with multiple branches.

ITMs provide a cost-effective solution for financial institutions, allowing them to reduce the average cost of helping a customer and optimize their operations.

By implementing ITMs, you can create a more efficient and cost-effective banking experience for your customers, while also improving your bottom line.

The cost of ITM hardware can vary depending on the brand and model type, ranging from $60,000 to $85,000. This cost includes the hardware and local software.

For example, if you choose to work with Hyosung or NCR, the costs are similar from a hardware perspective. Decisions around coin options, handsets for private conversations, or authentication and scanning technology should also be factored into the cost.

Typically, the hardware costs for ITMs can be broken down into the following components:

The cost of ITM backend costs can also vary, depending on the path you choose. For example, if you implement NCR ITMs, you'll need a video teller server, which can range from $60,000 to $100,000. You'll also need ITM software licenses, which can range from $10,000 per device to $75,000 for an enterprise license.

The invention of the ATM, or Automatic Teller Machine, revolutionized the way we interact with our money. It was first put into use by Barclays Bank in Enfield, north London, on June 27, 1967.

The machine was a result of the engineering team led by John Shepherd-Barron of De La Rue, a printing firm. He was awarded an OBE in the 2005 New Year Honours for his contribution.

The Barclays-De La Rue machine, called the De La Rue Automatic Cash System or DACS, was the first to use a four-digit personal identification number (PIN) for security. This system was developed by a group of engineers working at Smiths Group on the Chubb MD2 in 1965.

John Shepherd-Barron's team beat the Swedish saving banks' machine, called Bankomat, by nine days and British Westminster Bank's Smith Industries Chubb system, called Chubb MD2, by a month. The DACS and MD2 accepted only a single-use token or voucher which was retained by the machine.

The Speytec, developed by a small start-up in collaboration with Midland Bank, was the first to work with a card with a magnetic stripe at the back. It used principles including Carbon-14 and low-coercivity magnetism to make fraud more difficult.

The idea of a PIN stored on the card was developed by James Goodfellow and Anthony Davies, who filed a patent for it in 1966. This patent is also the earliest instance of a complete "currency dispenser system" in the patent record.

The patent for the Speytec device was filed in September 1969 and granted in 1973. It had a profound influence on the industry as a whole, with future entrants into the cash dispenser market such as NCR Corporation and IBM licensing Goodfellow's PIN system.

An ATM is made up of several devices, including a CPU to control the user interface and transaction devices, a magnetic or chip card reader to identify the customer, and a secure cryptoprocessor to process sensitive information.

The hardware cost of an ATM can range from $60,000 to $85,000, depending on the brand and model type.

A typical ATM is equipped with a display, function key buttons, or a touchscreen, and a record printer to provide the customer with a record of the transaction.

The vault of an ATM is where items of value are kept, and it's typically within the footprint of the device itself. The vault may include a dispensing mechanism, deposit mechanism, security sensors, locks, and journaling systems to record activity.

The cost of an ATM vault is determined by the grade, which can range from Underwriters Laboratories UL-291 "Business Hours" to CEN EN 1143-1 - CEN IV, depending on factors such as cost, weight, regulatory requirements, and internal volume requirements.

Here are the main components of an ATM vault:

Software costs can add up quickly when implementing ITMs.

ITM software licenses can range from $10,000 per device to $75,000 for an enterprise license.

For NCR ITMs, you'll also need a video teller server and setup, which can cost between $60,000 and $100,000.

If you want to run ATM transactions with NCRs, you'll need ATMOn, which can cost between $7,500 and $15,000.

Hyosung Core Integrated devices require a license to connect to the CORE, which can cost between $50,000 and $60,000.

ATM Switch Integration for non-clients or to authenticate clients via the switch to the CORE can cost between $30,000 and $40,000.

Hyosung retail ATMs can now be upgraded with NFC technology, making transactions faster, more secure, and convenient.

This upgrade allows users to perform transactions without inserting a physical card, using a smartphone, smartwatch, or NFC-enabled card by tapping it on the ATM's contactless reader.

NFC technology is a wireless communication technology that enables devices to communicate with each other when in close proximity.

With the NFC upgrade, users can enjoy a more seamless and contactless experience when making transactions at Hyosung ATMs.