Bank of America Testing Video ATMs

by Mercator Advisory Group 0

Video tellers have been offered for several years, but banks are struggling to understand how they fit into their overall distribution strategy. Are they super function ATMs that can further reduce the number of tellers by capturing the more complicated transactions not processed on ATMs? Or, are they urban walk-up versions of the suburban drive-up lanes that have been an integral part of bank branches for decades? While ATM deployments are enjoying a renaissance, driven by new ADA regulations and deposit automation, the major ATM vendors who also supply drive-up equipment have not introduced products for this new category that is neither fish nor fowl. Perhaps the tide has started to turn as it was disclosed yesterday that Bank of America was piloting video tellers equipment.

“Bank of America, which continues to prune its branch network nationwide is piloting the use of video-enabled ATMs where consumers can talk to a remote teller,” Bank of America Chief Executive Brian Moynihan said on a visit to Chicago Tuesday. “Branch design in the future will be different,” Moynihan, who took the top job of the Charlotte, N.C.-based megabank last year, said. He didn’t have information on where the pilots were under way.

He noted that BofA has fewer branches than it did a year ago and will have fewer a year from now. But he said that the Chicago market will see few if any closings as the bank fights to gain market share here. But market share leader Chase has seen its share of deposits grow to 17.2 percent, from 15.8 percent in 2009 and 14.9 percent in 2008.

Chase has been moving in the opposite direction from BofA with an aggressive branch expansion program (based on its WAMU acquisition) while it adds several thousand retail bankers to its branches to improve sales productivity.

For more information about BofA in the Chicago market read the article:
For information about uGenius the leading provider of video teller equipment, click here:

Here are links to stories about some financial institutions that have installed the video teller systems:

First Ontario Credit Union

Costal Federal Credit Union