ATMs And Fraud: Monitoring The Objectives And Stakes
Today’s ATMs go far beyond dispensing cash. They typically support a wide range of customer services and these devices are often equipped with advanced technology such as biometric authentication, interactive videos or contactless device interfaces.
Therefore, in an increasingly competitive environment, ATM management and acquiring has become more complex. A growing regulatory environment complicates business while ATM clients demand extra services. Meanwhile, digitization is pushing banks to rethink their branch strategy. For this reason, what can be done to manage ATMs efficiently?
A challenge for Financial Institutions is keeping their ATM network activity balanced. The question is, how can we ensure profitability while maintaining our advantages in digitalisation and providing services to ATM users? Read on to learn how to provide efficient ATM management and acquiring.
The Concept Of ATM Monitoring
Globally, financial institutions and retailers are increasingly operating their own ATM networks and systems. For this reason, a wide range of on-demand services must be provided, including cash withdrawals, digital currency operations, bill payment, deposit/mini statements, mobile top-ups, and PIN changes, while also covering the entire lifecycle of the ATM. Consequently, organizations are being called upon to proactively manage their ATM lifecycle and systems to ensure performance and fix problems as well as coordinate reconciliation, back-office accounting, and clearing & settlement as efficiently and quickly as possible.
Keeping operational costs to a minimum while keeping ATM services operational 24/7 requires financial institutions and retailers to adopt ATM systems that support future technologies such as automatic palm readers and facial recognition. Companies should also be aware that any system must meet the requirements of financial inclusion.
In terms of ATM monitoring, financial institutions and retailers need to ensure they are covering all ATM lifecycle activities from the setup, supply, maintenance, deployment of new services and marketing campaigns and more. If they are not operated by them, they should rely on partners that can take ownership of the ATM lifecycle – offering an end-to-end solution centered around ATM monitoring.
Aside from supervision of ATM business and technical activities, it is also important to optimize the cost of ATMs with cash forecasting systems, which are based on innovative technologies such as artificial intelligence (AI). By detecting usage patterns, and predicting withdrawals and supply to optimize processes, a comprehensive AI-based cash forecasting system can optimize ATM supply, reduce interest costs, and avoid cash shortages.
The key to fraud prevention is constant vigilance – it’s crucial to monitor fraud at every interaction point (devices, systems, and people). Financial institutions need to monitor and authorize all transactions coming from multiple systems and multiple channels, no matter the time of day. Having the ability to take action in real-time (accounting, POI, cardholder, etc.) when in the middle of a fraud case creates a significant number of challenges.
To address this issue, financial institutions must implement seamless processes that provide their customers with frictionless, yet secure, digital experiences. If they want to achieve this, they must stop viewing fraud events based on their physical location or their channel of transmission, whether it is online, via cards, digital, at a branch, ATM or MOTO.
The best way to mitigate risk is to monitor issuing and acquiring activities in real-time or near real-time through an omnichannel fraud management system offering a single customer view.
As part of a comprehensive fraud monitoring solution, financial institutions should ensure 24/7 monitoring of their activities. A dedicated team, which is well versed in the analysis and detection of fraudulent behaviour, coupled with an all-encompassing fraud solution can significantly reduce fraud and mitigate operational risks associated with fraud.
ATMs no longer are one size fits all channels. Consumers are getting more accustomed to personalized services and the service they expect to get at an ATM is no exception. In that context, BPCBT’s SmartVista comes with the ability to personalize screens on certain ATMs or for individual customers.