The Introduction of Personal Teller Machines

No matter how sophisticated ATMs become technologically, there will always be a contingent of consumers that insist on live teller interaction as part of their banking experience. With some large banks planning on closing hundreds of branch locations, however, they run the risk of alienating these customers. As financial institutions look to scale back their branch networks, personal teller machine (PTM) may provide the opportunity to maintain the teller experience without the expense of a brick-and-mortar branch.

We are seeing the concept of PTMs growing in popularity with financial institutions in the U.S., particularly within the credit union market. These highly innovative machines can facilitate any transaction normally done by a live teller, but promise to provide a more flexible and efficient workforce. To use these machines, all a member or customer has to do is touch the screen monitor on the PTM. They are then connected to a teller that operates the system remotely to monitor and service the customer’s transactions.

So, how is this different from using a traditional ATM? With a PTM machine, the customer is connected to a live teller via phone and video and the teller actually conducts the transaction. While these machines allow financial institutions to offer traditional teller service beyond the traditional 9 to 5 banking hours, they are still required to employ tellers to man the machines and conduct the transactions. Customers will have a slightly different experience using a PTM than they will using a traditional ATM. With the ATM everything is automated, and there is no need to have a live person help facilitate transactions. At the ATM and PTM, customers can withdrawal and deposit cash and checks, pay bills, check account balance and transfer funds between accounts, on a 24/7 basis. The difference is that with a PTM, a customer actually corresponds with a live teller.

Both machines can be placed in areas outside the traditional branch, making banking easier and more convenient for a larger number of people. It has been proven that ease and convenience are dominant selection criteria when consumers choose a financial institution. We, along with the entire industry, will watch with interest as these machines start to make their way into financial institutions and how consumers respond to the new machines and services offered.

Martin Macmillan