How AI Is Changing the ATM Industry?

For many years, technology has been changing people’s lives for the better. There are numerous examples of how modern tech solutions improved the overall quality and simplicity of life, like smartphones, wireless internet, artificial intelligence (AI), and many others. Other than being able to fulfill various tasks faster and easier, people learnt they could only succeed in this modern age if they continually follow up on technological changes.

Numerous businesses and companies have accepted these changes to make their businesses quicker and more accessible to consumers. An excellent example is banks that think ahead by doing everything they can to implement new available technologies.

Both mobile banking and ATMs are working much differently than they operated many years ago. The latest achievement is the implementation of AI (artificial intelligence), which has a goal of helping both consumers and businesses in many segments with their daily tasks. With many banks looking for ways to help reduce cash distribution costs in their ATM network, they’re now turning to software from websites like https://www.perativ.com/ to help.

Here are some of the best examples of how AI helps change the ATM industry for the better:

1. ATM Cash Demand Forecasts

 

An essential segment in which artificial intelligence is beneficial for keeping ATM operations smooth is the cash demand forecasting. The AI will learn the behavioral pattern of the ATM users and come up with a potential forecast of when the ATM should be refilled again. Doing so allows banks to know at every moment which ATM is close to being emptied so they can react accordingly and refill the ATM.

The importance of having filled ATMs is significant since the clients won’t have to experience the empty ATM situation. When people are in a hurry, and they need a fast cash withdrawal, the worst thing that can happen is to come across an empty ATM, especially if they’re catching a flight, etc.

2. Secure Facial Recognition Software

 

One of the biggest ATM manufacturing companies in the world, “Diebold Nixdorf,” collaborates with Samsung to build a new cardless ATM system. This system offers users the possibility to withdraw cash from ATMs without using their cards. How is that possible?

Instead of a standard Personal Identification Number (PIN) that users needed to enter before accessing their bank accounts, it now uses facial recognition software. People are already familiar with fingerprint or facial recognition phone screen unlocking, and this system is based on the same algorithms.

The entire process design is straightforward. ATMs will have a Near Field Communication (NFC) reader system, which serves as the biometric authentication. After the user taps their mobile device onto the ATM’s reader, the NFC connection is established. The next step is the mobile device facial recognition authentication. After the user passes the authentication process, cash withdrawal becomes possible.

All this might sound a bit scary and complicated, but it’s the fastest and safest way to withdraw money from ATMs so far.

3. Machine Learning Cybersecurity

 

There are many cybersecurity AI companies that’ll make a significant impact on the ATM industry. What is cybersecurity machine learning, and why is banking security in general important?

AI or machine learning is a software that tracks the behavioral patterns and learn from these patterns. A great example is MasterCard’s Safety Net machine learning software launched in 2015. The AI continually learns the patterns and users’ modus operandi. For instance, it’ll know how many times people use ATMs, as well as how many times they’ve used their card for online purchases or paid for goods through the POS terminal.

By doing so, the AI can predict everyone’s behavioral patterns, which is incredibly essential. For one, if a cyberattack happens on your credit card or an ATM, the software will raise the red flag, informing the company of suspicious activity.

The software allows MasterCard to track millions of their cards simultaneously and in real-time. Cybersecurity AI is the top-of-the-notch solution for keeping people’s money safe. The number of cyberattacks on banks and ATMs evolves as well, which is why cybersecurity AI companies are constantly developing and upgrading their software.

Wrapping Up

 

As mentioned above, Artificial Intelligence is already being used in the ATM industry. The software has changed a lot of things for the better for the users.

Not only can AI follow up on how much money is left within the ATM and inform the bank’s headquarters, but it can also learn how frequently people use their cards and for what purposes. By doing so, it has incredibly high chances of recognizing a potential cyber-attack. Additionally, AI can help quicken the cash withdrawal process by allowing users to log in to ATM via face recognition software instead of typing their card’s PIN.

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