Shaping the Future of Banking with ITMs

Michael Noftsger, Chief Administrative Officer (CAO), Forcht Bank

Michael Noftsger, Chief Administrative Officer (CAO), Forcht Bank

As one of the early adopters of Interactive Teller Machines (ITMs) in our area, I have seen changes in technology, security, and even marketing. Our journey began around 2016, with visits to other financial institutions utilizing ITMs, and then our first installations began in 2017. Today, Forcht Bank operates a fleet of approximately fifty units. All our drive-thru lanes and loan production offices have ITMs, as do our loan production offices. We also have a stand-alone at a local university.

Out of the gate, we implemented extended hours and have continued providing service to our customers six days a week from 7:00 AM until 7:00 PM EST. During the COVID pandemic, we never had to close. While many banks had to close branches completely due to the proximity of their staff, Forcht Bank’s ITM team (OnDemand Bankers) works in an environment where they are in individual cubes or offices. Some of our lobbies had to close temporarily, but our drive-thru was always open.

From a business continuity and disaster recovery perspective, all our On-Demand Bankers are equipped with laptops instead of desktop computers. This allows us to have a team of remote workers in the event of inclement weather, as our market footprint spans nearly 200 miles north to south and a little over 100 miles east to west. Our OnDemand team members are also located in four different markets. In addition, they all utilize soft phones through their computers. Our Bank Tech team manages our infrastructure in-house, but we do utilize off-prem and on-prem data centers. Unless there is an issue with one of our vendors, we typically operate without interruption.

The landscape for ATM/ITM security threats continues to change, as do the options for protecting the units themselves and the cash they hold. Hook and chain events are in the news nationwide, and now we have jackpotting. We have not been immune to these attacks and have enhanced our security features along the way. All newer units have security kits, protecting against a breach of the safe within an ATM or ITM. Security kits do not, however, protect against damage to the machine and property. Verti-block walls can be installed to eliminate the “runway” needed for a hook-and-chain attempt to be successful. Security gates are another option, although more expensive. Should you want noise and bright lights, screamer kits can be added to the interior of an ITM and will activate when the upper portion of the machine is breached.

“Security gates are another option, although more expensive. Should you want noise and bright lights, screamer kits can be added to the interior of an ITM and will activate when the upper portion of the machine is breached”

What about jackpotting? The perpetrators of this new threat tend to hit a specific geographic area and will scope out multiple ATM/ITMs in the middle of the night. Cameras at other financial institutions in our footprint have recorded gangs examining ATM/ITM units in preparation. Security gates can make entry more difficult for accessing a machine for jackpotting and hook-and-chain events. The best option is probably the new screamer kits that have an add-on to stop a jack-potting event. Once the unit is opened, the screamer kit is activated. An alarm notifies law enforcement, and the overall system's power is cut. As a result, there is no way to access money, and the arrival time of law enforcement is (hopefully) shorter. European banks have reported criminals using explosives to access ATM/ITM units. While this activity has yet to be an issue in the United States, we do need to be prepared.

There have been enhancements to ITM marketing features that are cost-effective. In the old days, tellers could send out buck slips through the tube system. While not too expensive, the cost could certainly add up. Banks would need to print new slips for different products or campaigns, wait for production, and then distribute them to their branches. When the campaign was over, you would start removing all the old messaging and repeating the process with the next campaign. Our ITM units allow graphics and messaging to be displayed on screen, providing customers and employees with a better (and greener) experience. Everything is touchscreen, of course.

Announcements for holiday greetings and closing information can be changed as needed. There is a space for product advertising on the screen where the On-Demand Banker is engaged with the customer. Forcht Bank has utilized QR codes in this space, allowing a quick link to access more details or disclosures on an advertised promotion, product or service. Exterior wraps, while not inexpensive, can be used to advertise your brand and have a decent lifespan. The former drive-thru window can become a billboard if you no longer utilize a drive-thru. Mesh window coverings are available that allow staff to see outside while obstructing the view inside with an advertisement.

Coming soon to the ITM world is what NCR started as Enhanced Self-Service (ESS). With ESS, you will be able to provide 24-hour banking for your customers utilizing ITMs. By using their debit card for identification, most ITM transactions can be completed without a live banker. Based on the earliest adopters of ESS, thirty to forty percent of customers will choose this option.

Our ITM journey has been exciting. We are looking forward to the opportunities they will continue to provide us in serving our customers and communities.

Financial

LAW ENFORCEMENT

Marketing

Disaster Recovery

Business Continuity