ATM giant Diebold Nixdorf and IT services company Samsung SDS America have revealed technology that could soon allow credit union members and other financial services customers to get money out of an ATM using only their faces.
The technology, debuted this month, lets members set up ATM withdrawals from anywhere via their mobile banking apps. Users then go to an ATM, tap their phones to a near field communications (NFC) reader on the ATM and authenticate with facial recognition software on their mobile devices. The terminal then dispenses their cash.
The process is supposed to take less than half the time of a standard ATM transaction, according to Samsung SDA America.
Though many financial institutions are already rolling out cardless ATM-transaction technology, the Diebold/Samsung concept provides a way to use an ATM without needing a card or a PIN.
“Samsung is making it easier for consumers to interact with their banks and ATMs using biometric information and eliminating the need for a physical card and PIN,” Samsung SDS America CEO Scott Koo said. “We have already shown how this works with Samsung Pay and now have extended this functionality to provide a faster and secure approach to cardless transactions.”
The technology can work on Android and iOS devices, according to Samsung SDS America. Puerto Rico's Banco Popular plans to pilot the technology this summer, the company said.
The move is one of many efforts in the industry to streamline ATM operation and capitalize on mobile technology. Earlier this year, Diebold debuted prototypes of point-of-sale systems that forgo magnetic stripe readers, as well as “Extreme ATMs” that have integrated Bluetooth technology that can communicate with mobile phones.
Recent data suggests financial institutions expect a world in which ATMs and the processes for using them will look dramatically different five years from now. One ATM Marketplace study of over 400 financial institutions and other organizations, for example, found that 68% expect to support cardless and contactless ATM transactions in the next four years, and 58% plan to have ATM functionality via mobile by then as well. Some 56% said cash and coin recycling will be part of the ATM experience by then; 55% said teller transaction functionality will be available then as well.
That follows news of research from MagnifyMoney showing that non-tech savvy credit unions are losing assets.
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