Customer Experience Transformation: Who’s replacing the cash machine?*

Customer Experience Transformation: Who’s replacing the cash machine?*

This article was first published on – the Customer Experience Blog. It is the exclusive property of KPMG Nunwood, part of KPMG in the UK.

After having explored in this series of articles how customer experience design transformed the retail and the travel industries, let us have a look into financial services. And in specific, how customer experience transformation is finally threatening to replace the iconic ATM after half a century of existing. To provide some context, in 2014 there was a reported 2.8 billion ATM cash withdrawals in the UK alone.

A hybrid between the ATM and your branch staff

Similarly to the NextAgentTM from our last article, the ITM (Interactive Teller Machine) is the combination of the traditional ATM with an actual teller, thanks to a video-feed. This customer experience transformation brings critical benefits for banks and building societies.

They could facilitate the survival of more rural branches by having the staff at these branches support the more in-demand locations at peak times – addressing any bottleneck in the network. As a consequence, it allows them to optimally service their entire customer base while optimising resources. This will also facilitate the extension of personalised service beyond regular banking hours, making it more convenient for busy professionals (excellent for the ‘Time & Effort’ pillar of Customer Experience Excellence). The next evolution of the ITM is probably the ‘Janus’ by company Diebold. The Janus is an ITM servicing two customers at the same time (with the same electronical resources) while respecting their privacy and reducing the floor space required to serve customers in-branch.

The numerous advantages are obvious for a bank or building society. Although it is geared towards providing a better customer service, it is yet to be determined if this innovation in customer experience design will prove to be a sustainable way of redefining our banking interactions.

Bring your own device to withdraw cash

Meet Irving, one of the greatest contenders for a disruptive customer experience transformation within financial services in recent times. Created by Diebold as well, it differs from Janus (the ITM) in that instead of enhancing interactions, it strips away steps and provides a streamline service to customers. It can allow you to withdraw cash in as little time as ten seconds. With this machine, you keep your card in your pocket, everything is done through your very own device (BYOD – bring your own device): there isn’t a screen, a card reader or a pin pad, only a cash dispenser. Behind theses minimalistic appearances, security is reinforced as authentication is done through the customer’s smartphone and cash can be requested through NFC, QR or biometric technologies.

In an age where customers are more and more comfortable to do their banking on smartphones (and in the near future, smartwatches), the Irving is only a logical extension to this ever growing habit. Offering fast, seamless and secure (provided you don’t lose your device transactions), the machine presents a great potential to seduce tech-savvy and time-poor banking customers. In late 2015, it was announced that an American bank was testing the concept in New York.

Although both concepts explored here are indeed great steps forward for customers and genuinely represent a true customer experience transformation, there are still obstacles ahead that might nip it in the bud. The most critical of these factors, ironically, is about the customer: we need to ensure we bring them on board.

Along with adopting and implementing these new facilities, it is key to ensure customers are educated appropriately on harnessing the power of the new devices if adoption is to be expected. If this process is not carried out properly, there’s little reason to believe that a screen-less ATM will put our iconic and traditional ATM into retirement.

Banking the Customer Experience Dividend: The £3.7bn opportunity

Fortunately, replacing the ATM is not the only way of seizing opportunities with customer experience. [KPMG Nunwood] research clearly shows that customer experience transformation represents a massive opportunity in terms of revenue for the ‘Big 4’ banks (making abstraction of the ATM replacement).


  • Customer experience in the era of 3.0 FinTech - CX Ahead | Mar 25,2018

    […] This article on FinTech was oringinally published on the CX Network. If you want to read another article on FinTech, you can read my take on the future of the ATM. […]

  • CX Ahead - Transformative Customer Experience in Banking | Oct 13,2018

    […] Banks can reduce the time it takes to withdraw cash (to less than 10 seconds) by using a customer’s smartphone. This approach removes friction for customers by relying on existing habits. And customers love it, considering they always spend a lot of time on their devices anyway. It’s a true example of businesses meeting customers on their terms. […]

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