Personal Teller Machines: The Next Evolution of ATMs?

Personal Teller Machines: The Next Evolution of ATMs?

Last week NCR announced a partnership with uGenius that will result in a new NCR device adding real time video to the ATM experience. The new NCR APTRA Interactive Teller ATM, based on its successful SelfServ 32 platform will add hardware components such as a Speaker, photo ID scanner, signature capture device, microphone and handset along with uGenius software at the ATM and in the back office. The uGenius software will be installed along with NCR’s own APTRA Activate. The announcement did not commit to availability or pricing for the new personal teller machines.

Celent thinks personal teller machines will be the next evolution of ATMs for three reasons:

  • PTMs deliver improved customer intimacy with a modest cost increment over ATMs – still delivering lower per transaction costs than traditional branch transactions.
  • PTMs will broaden the transaction mix versus ATMs – thus far an unproven assertion (I think).
  • PTMs will likely show improved sales lead generation results over ATMs through the more personal interaction with a live teller.

But how and where will PTMs be used? Coastal Federal Credit Union used uGenius PTMs to fully replace traditional branch tellers in its 15 depositoy branches while extending hours of service – and at the same time reduced teller staffing costs by over 40%. An impressive feat! Coastal’s case study is available in a recent Celent report: Branch Banking in a Multichannel World Part III: Case studies in Branch Transformation. But, how many financial institutions will be so bold? We anticipate more surgical adoption such as branch vestibule self-service, mini-branches and replacement of conventional pneumatic drive-through mechanisms.
Coastal FCU's PTM

Coastal FCU's PTM

Regardless of the adoption mechanisms, the partnership is a good thing. uGenius delivered a solid concept and has the market research to suggest strong consumer acceptance of PTMs. But, it lacked the scalability and credibility to win over the larger banks. NCR changes all that. Moreover, the resulting NCR APTRA Interactive Teller ATM will be superior to the uGenius PTMs in several ways. For starters, the devices will be PCI compliant so consumers can authenticate the way they’re used to doing – using a debit card and PIN, rather than relying on a photo ID scanner. And, we expect the units will be fully Check 21 enabled and integrated with legacy teller systems. But these are window dressing compared to the primary differentiator. The new device isn’t just a PTM. It can function as a multifunction ATM or a PTM at the customer’s discretion (if so enabled by the financial institution). So, tellers may not be needed or used for the millions of consumers more than comfortable with self-directed ATM transactions. But for those in need of coaching or just plain preferring a human interaction, the PTM’s remote teller will be at your beckon call. This, in our opinion, is a natural evolution of the ATM.

Bob Meara About Bob Meara

Bob Meara is a senior analyst with Celent's banking practice and is based in Atlanta, Georgia. His research focuses on the branch and ATM delivery channels, customer analytics and check and cash payment processing technologies. A well known authority on remote deposit capture, Bob has led multiple consulting engagements including proprietary research projects involving financial services hardware, software and the impact of self-service on branch banking.

Before joining Celent, Bob was the director of product marketing at Alogent. In this role, he positioned and launched a series of Check 21 payments solutions.

Prior to Alogent, Bob also held positions in marketing and brand management at BellSouth, Hayes Corporation, and Procter & Gamble in addition to being a commissioned naval officer.

Bob earned a Bachelor of Science in Applied Physics and Electrical Engineering from Case Western Reserve University.

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