Nearly every business finds itself in the midst of a digital transformation, where new technology is forcing them to evolve quickly to meet customer expectations and maintain relevance. Financial institutions and their ATMs are on the front lines of this battle.
More specifically, this includes the movement toward internet-enabled devices, now being referred to as the Internet of Things (IoT). As sensors lower in cost, businesses have found more ways to connect devices and people—providing visibility into their operations by monitoring usage and tracking data.
While its use is not widespread yet, banks are beginning to consider what IoT can do for their business and what it means for their customers. If your organization is watching this trend with interest, here are some key things to look out for as you decide how to proceed.
What Can IoT Deliver to Your Business?
There are several ways that integrating IoT into your ATM fleet can deliver extra value to your bottom line, as well as your customers’ experience with your brand.
First, some IoT sensors have the ability to track foot traffic near your ATMs. This data can be used to inform the proper placement of your equipment or even tell you whether parts of your fleet should be removed or relocated for maximum return on investment. Additionally, this proximity data can be used in connection with other usage statistics to identify whether additional ATMs are needed to account for variable traffic patterns.
IoT devices integrated with an ATM can also be used to detect approaching customers. Once their presence is sensed, the ATM can illuminate, display select screens, or alert banking staff.
Advanced features integrated with a customer’s mobile phone or other devices could also be used to enable the ATM to present custom marketing, services, or greetings to further personalize the interaction. For example, Citibank is piloting a program that sends customers personalized messages and allows cardless entry into ATM lobbies.
What Should You Consider When Implementing IoT?
Does all this talk about IOT got your head spinning? That’s when a team like Burroughs can help you navigate the landscape and discuss what to consider when it comes to implementation.
Before deciding to deploy IoT devices, Burroughs advises banks to first understand how their network footprint will change with the introduction of wireless connectivity. Connections between the IoT devices should be hardened to prevent unauthorized access to back-end databases or services, and other banking services should be segregated to prevent the potential for attackers to pivot to other parts of your network. This can also help prevent the IoT devices from impacting your bandwidth reserved for employees and customers.
Similarly, all customer data collected via the IoT devices should be for a specific purpose with strict access controls, security layers, and other compliance and regulatory guidance in place, a sometimes tricky problem that Burroughs can assist with. While data collected by IoT devices can provide ample information to help guide operational decisions, this data can also be valuable to identity thieves.
Bringing It All Together
From providing a steady stream of data to help guide business decisions to further personalizing a customer’s experience at the ATM, IoT has the potential to give banks and their customers a range of new benefits. But before all those features come online, banks should consider the security implications and how their fleet fits into their business model.
Bringing in a trusted, experienced voice like the team at Burroughs can help you get the most out of your ATM fleet and prepare your business for the technology waiting around the corner. Click here to learn more about our full range of ATM services.