Here at Equips, we have written a lot about financial equipment that can help streamline the work in the lobbies of financial institutions. Recently, we talked about the benefits of incorporating Teller Cash Dispensers and Teller Cash Recyclers, and how Equips can maximize the value of those devices.
In this blog, we’ll look at deposit machines and what functions they support within banks and credit unions.
As the name implies, deposit machines are pieces of automated equipment that are capable of taking customers’/members’ deposits and crediting their cash and checks to their accounts. This technology was originally its own piece of equipment, separate from other banking devices. However, it was quickly incorporated into ATMs and other banking machines (e.g., ITMs, and TCRs). In this blog, we’ll talk about a common form of a deposit machine—a deposit-enabled ATM.
ATMs and cash transactions at deposit machines
ATMs are, of course, a common piece of financial equipment. They provide valuable services to many individuals and enable how many people carry out transactions. Even in a digital world, they are important. As we’ve noted in other blogs, COVID-19 was not the end of cash that many people thought it would be. In fact, a survey found people are carrying more cash than they were before the virus.
The real change COVID-19 has brought, however, is the increased use of contactless banking. This has put renewed demand on ATMs—especially units that are able to take deposits.
Pandemic aside, deposit-capable machines had already proven to provide strong value and convenience. Countless banks have implemented them outside their branches to ensure customers/members can do basic banking (both withdrawing and depositing) outside of business hours.
Where do deposit machines fit?
Over the past 20 years, customer-facing financial technology has greatly evolved. Banks and credit unions now have access to a huge variety of equipment. For instance, the company Hyosung alone currently lists nearly two dozen different models of financial equipment for sale.
Since each piece of financial equipment is meant to fit a particular need, it’s important to consider the pros and cons of deposit-capable ATMs and how they compare with other pieces of financial technology.
Comparing deposit machines to traditional ATMs
Obviously, the big advantage that deposit machines have over basic ATMs is their ability to take check and cash deposits. As mentioned earlier, this allows customers and members to get basic banking done at any time of day and caters to those who prefer self-service.
The drawback is that deposit technology means that there are more things that can go wrong with the machine. Equips has found that one of the most common breakages with deposit machines is that debris or an object (e.g., paperclip or rubber band on cash) jams the deposit intake. This is a problem that is not possible for a traditional ATM. So, while deposit machines provide a lot more services than ATMs, financial institutions must be aware that they may need to be monitored more closely—which Equips can help with.
Comparing deposit machines to ITMs
As an alternative to traditional ATMs, many banks and credit unions have embraced more advanced technology by purchasing ITMs for customer banking. At Equips, we’re big fans of the capabilities of ITMs and have written a lot about them (both “Upgrading to ITMs” and “Interactive Teller Machines“), but that doesn’t mean ITMs are the answer for everyone.
A key value of ITMs is that they allow customers/members to virtually interact with a real teller to access extra services. For the right financial institutions, this is a game-changing technology that can create all kinds of interesting options for branch planning. However, many banks and credit unions are not big enough to have a remote teller available outside of business hours. Additionally, many financial institutions put a strong focus on personal interaction and may want any complex banking to be done inside a branch. ITMs are also more expensive than deposit machines and, in certain markets, that the extra money would go to waste if the people in the area have no interest in using the interactive technology.
Equips experience can help support your bank or credit union
Equips is positioned within the industry to help provide unbiased advice on which equipment solutions are right for each financial institution. Having partnerships with many major providers around the country, we can provide valuable insight on the best route to take for your business. We have data to support your selection of the right machine and manufacturer to ensure it meets the needs of your financial institution.
We also provide data on the service side. We know the best maintenance vendors, which OEMs have the best equipment, and which brands make their equipment easy to service. We work to connect institutions to the vendors that will provide excellent support, and we can help monitor your equipment to improve uptime and create cost savings. Contact us to get support!