The south-east Asia ATM Conference held in Jakarta last month saw the region’s banks, independent deployers and network processors come together to discuss industry trends and share experiences and insights into banking automation, ATMs, cards and payments. Indue’s Business Development Manager, Cameron Ross attended the conference, along with delegates and speakers from MasterCard, Visa and a number of banks and credit unions from across Asia.
From 10-11 March speakers from Bank of Thailand, Bank of Central Asia and OKI Japan discussed high-level challenges facing the ATM business in the region, leveraging the Internet of Things, and how smartphones can be used to enhance self-service banking and the ATM channel.
Cameron Ross shares some of the interesting concepts discussed at this year’s conference and what Australian financial institutions can learn from these technology trends in Asia.
The ATM market in Asia is more collaborative
Most countries in south-east Asia continue to see an increase in the use of cash and the number of ATMs. This is in contrast to Australia’s ATM market which has stabilised at around 30,000 ATMs, with cash withdrawals actually declining at 9 per cent per annum (RBA, December 2014).
In Malaysia and Thailand, multi-bank client servicing companies are providing full ATM lifecycle management for a number of banks using the one, pooled ATM service. The initial driver to collaborate ATM services between banks was the Asian financial crisis in the late 1990s, when banks identified large cost savings by sharing their services, in particular rent for ATM space in retail areas.
Seven Bank, a Japanese subsidiary of 7 Eleven Corporation, entered the Independent ATM Deployer Device (IAD) market in 2001. Seven Bank utilises 7 Eleven’s convenience store locations to place multi-bank ATMs, with ninety-five per cent of their revenue generated from ATMs and each user’s bank paying them an interchange amount to service their clients.
Self-service devices are the way of the future
Asian banks are also seeing the opportunity to add features to traditional ATMs to handle customer interactions for other items, reducing the need for full branch services. This includes bill payments such as tax, utilities, vehicle registration and fines, airline or concert ticket issuing, purchasing insurance policies, pre-paid mobile phone top-ups and international money transfers.
Cash recycling is becoming the norm for most new hardware purchases and large Asian markets have historically used separate machines for cash deposit (CDM) and cash withdrawal (ATM). However, being able to service both types of cash transactions from the one machine is saving banks on hardware and rental space for each machine as well as improving efficiency. Bank Central Asia has seen a 60 per cent efficiency in cash handling costs as a result of introducing cash recycling capabilities to their 15,000 ATMs.
Virtual tellers are providing significant cost savings
Banks with a large client base but minimal infrastructure are investigating virtual teller kiosks to connect with clients via video and self-service. These virtual tellers have the ability for clients to interact as they would with physical tellers, allowing banks to conduct more than eighty-six per cent of over the counter transactions, including cash, coin and cheque deposits and withdrawals and even dispense a debit card. Customers can also open an account, apply for a loan and scan their passport or driver’s license all via these virtual tellers.
What does this all mean for the banking industry in Australia? Can we learn anything else from what’s happening in Asia Pacific?
These technology trends in Asia could present significant cost-saving opportunities for the Australian banking industry. Already we are seeing ‘cardless cash’ being introduced by the major banks.
Visa is currently running a trial with ANZ and NCR in Australia using field communication to complete the average transaction twenty-five percent faster. A recent study from Visa indicates Australia is one of the fastest adopters of new technologies, with the potential to phase out magnetic stripe readers in the near future.
Indue is uniquely positioned to provide integrated banking solutions for its customers and their clients via user-friendly technology including mobile, digital and self-service.
For more information on how to integrate these technologies with strategic business advice, contact
Business Development Manager – Acquiring
phone +61 7 3335 4127
mobile +61 408 302 194