ATM technology is set to evolve as banks begin to allow ATM access from customers’ phones and other mobile devices. Banks must invest in more advanced security systems and ensure secure access in order to prevent fraud and keep clients’ funds safe. According to Infiniti Research, the market for ATMs and associated technologies will grow at a rate of more than 8% until 2020.
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At present, wireless and mobile ATM technology is mainly being implemented in the Americas which, according to Infiniti Research, account for more than 60% of the global ATM market. It is most common in the US where major banks like JPMorgan Chase are testing the technology and slowly rolling it out across the country. At present, JPMorgan Chase is using mobile ATM technology on over one hundred machines in four American cities. Other American banks, including Bank of America and Wells Fargo, intend to implement the technology by the end of the year at the latest.
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The option for cardless ATM withdrawals is made possible by the use of near-field communications (NFC) technology. Most smartphones contain an NFC chip—newer iPhones, for example, use NFC technology for Apple Pay. When incorporated into ATMs, NFC allows customers to tap their phone, enter their banking credentials on a compatible app, and receive their money from the machine, all without putting in their account’s pin number.
Though this new banking option increases customers’ convenience, it also increases the risk of fraud. Skimming, which is the practice of installing malicious hardware or equipment on an ATM for the purpose of stealing card numbers and money, is made easier through mobile ATM technology as banking usernames and passwords can be extremely vulnerable to hackers. Those with malicious intent could enter other people’s credentials on a smartphone and have easy access to funds. To combat this and to allow this technology to benefit customers rather than put their assets at risk, banks are investing in advanced security solutions and technologies for their ATMs. For example, Chase, after a security incident in which almost USD 3,000 was stolen from a customer via cardless banking, have upgraded their ATM security technology, as well as their ability to identify and deter hackers and other threats.
To properly identify threats to customers’ funds and banks as a whole, financial institutions must have a thorough understanding of the ATM technology market, including potential threats and how they can be prevented against. Infiniti Research’s market intelligence services can help you to identify these threats, what advanced solutions you should use to protect your customers against them, and what the future for ATM technologies holds. Infiniti Research can also assist you with developing sophisticated security strategies to ensure long-term safety and success for your business.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.