ITM vs ATM: Which is Better for Bank Customers?

Automated Teller Machines (ATMs) revolutionized banking decades ago, giving customers the freedom to withdraw cash, check balances, or deposit funds anytime and anywhere. Today, the industry has taken a step further with the introduction of Interactive Teller Machines (ITMs), but many customers may not have interacted or have even seen one yet. Even though ITMs are an advanced form of ATM, only about 25% of retail banks have them available to their customers. 

So, do customers actually need them, or are ATMs good enough? Maybe there's a better option. 

Understanding ITMs vs. ATMs

What is an ATM?

ATMs may not need an introduction, but for the sake or spotting the differences ATMs, or Automated Teller Machines, have been around for years and are the go-to option for quick, routine banking tasks. They allow customers to:

• Withdraw and deposit cash
• Check account balances
• Transfer funds between accounts

ATMs are known for their simple, self-service functionality. They are inherently cost-effective for banks, as they reduce reliance on human staff for basic transactions. However, their capabilities are limited to straightforward operations. With branch closures and teller shortages on the rise, bank customers may need more than just cash withdrawal, which currently an ATM can't offer. 

What is an ITM?

ITMs or Interactive Teller Machines, were made popular during the pandemic era when customers didn't have access to in-person banking, and stayed because of their ease of use for customers. These machines bridge the gap between the self-service efficiency of ATMs and the personalized assistance provided in branches. Through ITMs, customers can:

• Connect with a remote bank teller via video chat
• Complete more advanced transactions, like account queries or cashing checks.
• Access extended service hours compared to traditional branches

Essentially, ITMs offer the same convenience as ATMs but with the added benefit of human interaction. They’re particularly valuable in situations where guidance or approval from a teller is required.

ITM's essentially take everything about the in-person banking experience and put it in an interactive "branch in a box," which can be quicker than entering and waiting in line for banking customers. 

Why Do We Still Have ATMs if we have ITMs?

You might be thinking - if ITMs can do all the ATMs can do and more, why don't we replace all ATMs with ITM machines? Well, ITMs have their downsides for banking costs, and aren't as future ready as you might think. 

Disadvantages of ITMs:

They're expensive: ITMs can be a hefty upfront expense, costing somewhere in the $100,000 range to purchase, and that's just for one unit. This isn't including installation or maintenance fees, which because of their interactive capabilities, is more in-depth than a typical ATM. 

They require more training and more staff: You may need to hire more staff if you choose to implement ITMs for your bank. Bank tellers will need more training on how to service customers virtually. On the other hand, the bank teller position is expected to go away in a few short years in order for banking associates to do more than just work on a teller line.

Why Striking a Balance is Key

Although each technology serves unique functions, relying solely on one or the other is unlikely to meet the diverse expectations of today’s customers. Implementing a balanced approach that uses the strengths of both ATMs and ITMs is where the real value lies, benefiting both banks and their customers.

With branch closures increasing and the number of bank teller jobs decreasing, banks will need to rethink their ITM approach. Eventually, customers  will need a complete self-servicing kiosk option that bridges that gap between banking & FinTech applications. 

Were talking about a machine that lets customers print and access teller documents like cashier's checks, money orders, deposit slips, loan coupons, with wet signature capture themselves - without the need for a teller. 

Does a machine like this exist? With TROY, the answer is yes. But many modern retail banks haven't implemented a solution like this...yet. 

Building Better Customer Experiences

Ultimately, the success of this balance hinges on flexibility and understanding. When financial institutions invest in solutions that adapt to customer behavior, they create lasting trust and loyalty. ITMs and ATMs are not competitors; they’re partners in the future of banking that can be merged into one that can better help both consumers and banks at the same time.

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