How to react to the crashes

The headlines about recent ATM network crashes highlight once more the critical importance of this channel and the dramatic consequences of its failure.

Retail banks face two key challenges: dealing with declining levels of customer trust on one side and the aggressive market entrance of new players such as Tesco, Virgin and Boots on the other. In this complex landscape, financial institutions can leverage the potential of ATMs, which are still the primary point of contact with the public, to provide high levels of service and, even more importantly, strengthen their brands. This is especially true for banks that are actively re-thinking the way they engage with customers after mergers and acquisitions: in such scenarios maximising interaction with customers across all channels is vital to communicate change effectively.

In response to these challenges, top tier UK banks have already made substantial investments in their ATM channels and are set to continue to do so. For banks that have prioritised ATMs, the recent press coverage of ATM failures shows the vital importance of their choice. For those financial institutions still waiting to take the plunge, recent events will surely provide further food for thought. Changes don’t happen overnight, but the time for reconsidering ATM strategies is clearly now.