When is an ATM not an ATM? When it’s a vending machine. Chris Skinner finds that banks are finally waking up to the possibilities beyond cash dispensing that their customers will be queuing up to take advantage of.

For years, there has been a debate about the direction for the Automated Teller Machine (ATM). The ATM, or cash machine, debate focuses on why these machines only dispense cash when they could offer so much more. The core of the argument is always that they are designed for short, sharp transactions – giving out cash and checking balances – and nothing more complex. But this is changing, and it is interesting to track their future direction.

According to TowerGroup, American ATMs perform 40 billion transactions a year, dispensing cash 60% of the time and checking balances for a further 25%. Consumers are happy to use these machines wherever they are located, with the positioning and design driving fast transactions so as to avoid queuing.

There have been trials of ATMs for other functions – such as selling insurance or providing internet access – but these trials just proved that the systems were not suited to the purpose. In particular, the idea of spending more than a minute at the machine would cause tempers to fray for those waiting to get cash behind you. As a result, one of the biggest changes in the cash machine’s 35-year history has been their migration away from bank premises and into supermarkets, garages, train stations and casinos. Wow, what a fast-moving marketplace we have going on here.

But, for those of us waiting for the ATM to grow up, the day finally appears to be here. For example, 15% of ATM transactions in the US are issuing stamps, tickets and top-ups for mobile telephones. In addition, ATMs are now doubling up as advertising screens, with videos flashing offers to consumers as they pass by. They are also cheque deposit systems, taking the load off the branch staff by automating the cheque process. They can even be a cash recycling system, where you throw a few notes into the ATM to increase your bank balance, so that the next person can take your notes out of the ATM in order to decrease theirs.

All in all, the fast transaction focus of the ATM providers is extending the machine’s capabilities from a pure cash dispenser to a wide range of new functionalities. You can even download and pay for the latest MP3 chart singles at your local ATM. It just makes me wonder when we will get to the stage where the ATM becomes a vending machine. Or maybe that is just where it is heading in this age of mobile and contactless payments. Forget the cash, just get your entertainment here.

Chris Skinner is founder of Shaping Tomorrow and chief executive of Balatro Ltd. Find out more at www.ShapingTomorrow.com or e-mail Chris at chris.skinner@shapingtomorrow.com

PLEASE ENTER YOUR DETAILS TO WATCH THIS VIDEO

All fields are mandatory

The Banker is a service from the Financial Times. The Financial Times Ltd takes your privacy seriously.

Choose how you want us to contact you.

Invites and Offers from The Banker

Receive exclusive personalised event invitations, carefully curated offers and promotions from The Banker



For more information about how we use your data, please refer to our privacy and cookie policies.

Terms and conditions

Join our community

The Banker on Twitter