The Future of Self-Service Banking
In 1972, the first ATMs (ATMs) operating with plastic cards were installed, and only 40 years later, more reliable alternatives to the magnetic stripe on a credit card appeared. Where new ATMs are already using artificial intelligence, biometrics and cashing out cryptocurrency, read this article.
Bank cards are no longer needed?
Last year, the National Bank of Australia (NAB) and Microsoft began jointly developing a device that is equipped with a facial recognition system and works without a plastic card. The project is not yet ready, but competitors are already striving to be the first to introduce new technologies, and one of them is Taiwan’s E. Sun Commercial Bank..
A Taiwan-based bank launched several fully functional ATMs with facial recognition earlier this year. But the clients got even more trouble with the new device, because it still requires a plastic card to be inserted, after which the identification process takes place. If it is successful, a PIN code is sent to the smartphone. Ideally, a plastic card should not be used at all and some banks have already passed the transition process. Among them is Sberbank, which in 2017 launched such an ATM on Kutuzovsky Prospekt without using a card. In 2018 the project was not closed and continued to work.
FaceID technology checks up to 16,000 checkpoints on the face, and then allows you to make a transaction. Naturally, customers must initially provide the bank with their biometric data in the form of a photograph to form a template..
The photo – it is just one type of biometric data. In addition to photos, fingerprints are also actively used. For example, the American company NCR Corporation has created an ATM that scans fingerprints without touching the surface. Such a machine works with the help of a mobile application, in which you need to specify the data for a transaction, and then hold your hand from the palm of your hand above a special surface for scanning.
Biometrics also include the pattern of veins on the fingers. This type of data is used by Bank of China in 160 ATMs in China. True, the system does not work without a plastic card.
Voice is another unique identifier of a person. The advantage of human voice recognition is that the existing artificial intelligence systems for handling voice requests Siri and Alexa are already quite well developed. They are actively used not only in banks, but also in EPS PayPal and Venmo.
Artificial intelligence developers Nuance and Personetics create working models of voice services, but it is in ATMs that these systems are not installed for various reasons:
- A large number of existing cash-out points are installed on the streets, where it is difficult to remove unnecessary noise.
- Additional opportunities for scammers who will install sound recording devices.
- Restricting the ability to use the ATM of dumb people.
- Inconvenience (not every person is comfortable speaking loudly in the presence of other people).
Voice identification is more suitable for launching mobile banking at home or any other secluded place. This practice has already been implemented in Ally Bank, TD Bank, Westpac, Garanti Bank (a subsidiary of BBVA from Turkey).
Smartphone instead of a card
JPMorgan Chase equipped 16,000 points a year ago for cashing money with an NFC module that reads data from a smartphone. Thus, the plastic card was replaced by Apple Pay, Samsung Pay and Google Pay applications..
To withdraw dollars, just bring the smartphone to the module, enter the PIN-code and select the appropriate function in the application. A similar app is used by Wells Fargo.
Crypto ATMs are used to buy cryptocurrencies for cash and vice versa. Now the leader in this area is the British company Lamassu. Lamassu devices are sold all over the world, so they accept most fiat currencies. Digital currencies support BTC, ZEC, ETH, BCH, LTC and DASH.
American retail chain Sheetz installed BTC ATM in July at six locations supported by Coinsource. Five of them are located in Pennsylvania and one – in North Carolina.
In Canada, there is a startup LocalCoinATM, which promotes the Ethereum cryptocurrency. It is logical, because the main ideologist and founder of Ethereum Vitalik Buterin also has Canadian citizenship..
The ATMs of this operator are installed in Toronto, Etobicoke and Brampton..
The number of cryptocurrency ATMs is growing, they are already installed in most countries and even in Kenya. There are about 51 crypto ATMs on the territory of Russia.
Unfortunately, they are not used everywhere, which is why operators are sometimes forced to turn off devices due to unprofitability..