Automatic teller machines undergo inevitable transformation due to mobile banking

By Lim Chang-won Posted : November 17, 2020, 17:59 Updated : November 17, 2020, 17:59

[Courtesy of Kookmin Bank]

SEOUL -- Automatic teller machines run by South Korean commercial banks are undergoing inevitable transformation to increase convenience or provide a fresh customer experience as they gradually lose popularity due to a growing number of online and mobile banking users.

An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access cash. Some ATMs are simple cash dispensers while others allow a variety of transactions such as check deposits, balance transfers and bill payments.

According to the central Bank of Korea in October, the rate of customers using online or mobile banking services stood at 64.3 percent in the second quarter of this year. The usage rate of ATMs was down 6.4 percent on-quarter.

Kookmin Bank, a top lender in South Korea, has introduced a digital ATM service with a 42-inch monitor that automatically opens and closes bio-certification modules. The transaction screen was revamped so that ATMs can be used easily and quickly by studying patterns of use and psychological aspects. It has been showcased at Kookmin Bank's new head office and a district branch in Seoul.

Nonghyup Bank has released a high-function ATM. The device offers a service to exchange foreign currencies such as dollars, yen, euro and yuan as well as Korean won transactions. The agricultural bank would install two units at an airport in Muan and gradually expand the introduction of new ATMs in other areas.

"We hope customers can use a bureau de change service more easily," Nonghyup vice president Oh Kyung-geun said. "We will make every effort to provide better non-face-to-face financial services in a rapidly changing financial environment."
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