New ATM Technology by Josef Toth of I Solutions

At a recent Consumer Electronics Show (CES), Diebold used the opportunity to roll out new technology fit for the 21^st Century and took advantage of the public’s affinity for smartphone technology.

At the Consumer Electronics Show (CES) in Las Vegas the firm showed off a new "conceptual ATM interface". The “conceptual ATM interface” has a similar platform to smartphone technology. Its touchscreen, navigation and controls mirror those of smart phones.

Consumers can now use their smartphones to complete many of the transactions available on the ATM. One exciting new technology is the cardless withdrawal. Customers scan a Quick Response (QR) code on the ATM using their phones. According to Bank Innovation, here’s how a QR code works.

“A retail customer goes to a designated, bank-branded app to indicate that she wants to take out cash from an ATM. The app authenticates the consumer. When the customer gets to any ATM in the system, she scans the onscreen QR code with her mobile device. The QR code relays the customer’s location to the server, and the server matches the customer’s request with the ATM location and dispenses the requested cash.”

Diebold believes that by using this system a number of security risks are reduced. For instance, the chances of losing their card, or having it stolen, are reduced significantly by using this system.  The chances for skimming are also reduced. Skimming occurs when thieves are able to use software to swipe data, including the PIN, from ATM cards. Because no card is used, that threat is significantly reduced.  This system also increases privacy in general because personal information is entered on the phone rather than into the ATM. Most skimming schemes involving installing software that reads information entered into the ATM.

The firm is also developing a payment feature which allows customers to pre-approve future payments to third parties. The sender enters payment information along with information about the receiver of the payment and the time and date of payment.  Once all that information is confirmed, the payment recipient receives a one-time code. That individual is able to use that code at an ATM or branch to receive money.

Another exciting development is the use of cloud-based services. Cloud based services allows for significantly reduced hardware and electricity costs. Cloud based services use the internet to store information, and thus, they don’t require bulky computers.

Frank Natoli, chief innovation officer at Diebold, said, “Mobile devices are driving user experience expectations in all facets of commerce. It was only a matter of time before the familiar multi-touch interface style made its way to the ATM. With the burgeoning buying power of the Millennial generation, Diebold envisions this technology will further influence user experiences at the ATM."