The opportunities and challenges offered by cardless ATMs

European ATMs, London, 2014

Content

History of ATM

Cardless

Opportunities and challenges

History

1967 Reg Varney using the first

ATM

1972 First modern ATMs

1939 Bankograph

Cardless

„to withdraw money from an ATM without using a card“

Cardless

What becomes more and more important in today banking?

to increase customer loyalty and convenience

to bring innovation and be one step ahead of competitors

security

Opportunities

Mobile app Customer perspective Bank perspective

Other methods

Biometrics finger vain Google Glass Biometry

Tap

Code

Card

GET CASH?

Mobile - Everytime and Everywhere

Sport event

Taxi, bus, rail etc.

Holiday

Customer perspective – „The ATM in your pocket“

Mobile

ATM Finder

Mobile preparation of ATM transactions

Cardless transactions

NFC, QR, security code

Cash In - Out

Send money feature

(to family, friends , etc.)without card)

Cardless transactions - QR codes

It allows bank users to make a cash withdrawal using a smartphone

QR code as a new security tool

Withdrawal process:

Step 1 -> Preparing a transaction

Step 2 -> Closing a transaction

Cardless transactions - QR codes

Withdrawal process 1:

1) Client preorders the transaction through the mobile app

2) Client selects account and amount of cash withdrawal

3) Cliend goes to ATM and scan QR code on the ATM screen with the phone

4) Withdrawal is completed through secure cloud and customer receives cash and digital receip which can be stored in the app, send by email etc.

Withdrawal process 2:

1) Client preorders the transaction through the mobile app (enter the PIN)

2) Client selects account and amount of cash withdrawal

3) Clients goes to ATM and ATM scan QR code from the phone screen

4) Withdrawal is completed through secure cloud and customer receives cash and digital receip which can be stored in the app, send by email etc.

Cardless transactions - QR codes

Prerequisites:

ATM must be equiped to read the QR code (sw) Client has to own smartphone with QR scan

Advantages:

Faster servis The cardless transactions reduce consumer security risks related to lost or

stolen card The opportunity for skimming Privacy is enhanced OS (Android, iOS)

Cardless transactions - NFC

NFC = near-field-communication (the technology that allows you to transfer small amout of data between two devices)

It allows a bank users to make a cash withdrawal on a

smartphone through NFC

Method, in which people wave a mobile phone near the NFC-enabled ATM to identify themselves

Cardless transactions - NFC

Prerequisites:

ATM must be equiped with NFC reader Client has to own smartphone with NFC technology

Advantages:

Faster servis The cardless transactions reduce consumer security risks related to lost or

stolen card The opportunity for skimming Privacy is enhanced

Dis - advantages:

Not for iOS users (the future of NFC for iOS users is currently uncertain)

Cardless transactions – one-time-use PIN

It allows a bank users to make a cash withdrawal on a one-time-use PIN bases

It is typically used:

SMS Call-center / IVR Internet banking Mobile app

Advantages:

Send money to friends, family … Security - PIN validity

Opportunities and challenges

Opportunities Innovation Transaction usually under 10s Easily accessible banking service Security - skimming, steal card Privacy Money can be transfered to me,

family, friends … Preparation in advance Easy autorization process

Challanges Technology Operation system of the phone To get people used to new

technologies

Mobile control and manage-ment of marketing campaigns (Advertisement information and management)

Bank perspective - opportunities

Mobile Administration and monitoring of the ATM Networks

„the customers need not to be the only

beneficiary“

Other methods

Other methods

Biometrics finger vain Google Glass Biometry (iris camera, face recognition) Keystroke dynamics

-The opportunities and challenges offered by cardless

ATMs -

Michal Voldrich,

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