Ryan Rackley

Are Video Teller Machines the ‘Branch of the Future?’

The lowly ATM has been sitting in the corner for the last couple of decades, quietly doing its job. It hasn’t complained, it hasn’t called in sick. It’s always hungry for deposits and happily spits out cash. Over the last few years, however, we have seen a revolution in automated teller machine technology with the advent of deposit automation and video teller capabilities. As banks and credit unions continually strive to find efficiency and differentiation in their branch networks, many are wondering if they should invest in video teller machines (aka interactive teller machines). ITMs are basically ATMs with enhanced functionality, including video chat capabilities back to a centralized teller. ITMs require a significant capital investment, and investing in these machines has become a popular and controversial topic. Why are some FIs investing in ITMs and some are not? What is the return on investment? Are these machines essential to the “branch of the future?” Is there an alternative?