The objectives and stakes of Monitoring: focus on ATM & Fraud
ATMs have changed the face of banking, allowing customers of financial institutions to perform financial transactions 24/7, such as cash withdrawals, account information queries, deposits, fund transfers.
Since the first ATM was put in use in the 1960s, ATMs have gone a long way. Today they offer advanced functions, and go way beyond simple cash machines. We even see more and more Bitcoin ATMs and digital currency machines installed all over the United States and in countries around the globe.
In addition to being available anytime, customers can access those ATM services almost everywhere, with around 3 million units currently in use (according to ATMIA).
For Financial Institutions, keeping their ATM network activity balanced is a challenge. How to ensure profitability, while staying ahead of the game in terms of digitalisation and services offered for ATM users?
Financial institutions and retailers across the world are increasingly operating their own open ATM systems and networks. This requires the provision of a broad range of on-demand services such as cash withdrawal, digital currency operations, bill payment, deposit/mini statements, mobile top-ups and PIN changes as well as covering the entire lifecycle of the ATM. To meet this increasing demand, organisations are having to proactively manage their ATM lifecycle and systems to monitor performance and fix malfunctions, as well as co-ordinate reconciliation, back-office accounting, and clearing & settlement as quickly as possible.
To ensure services are up and running 24/7 - while keeping operational costs to a minimum, financial institutions and retailers need to implement ATM systems that are card-agnostic and support future technologies such as automatic palm readers and facial recognition. Firms should also bear in mind that any system will have to meet the forthcoming demands of financial inclusion.
In terms of ATM monitoring, financial institutions and retailers need to ensure they have all their ATMs’ lifecycle activities covered (from the setup, supply, maintenance, deployment of new services and marketing campaigns, etc.). When not operated by them, relying on partners that can take the ownership on overall supervising ATM components and devices lifecycle – offering an end-to-end solution focused on ATM monitoring is key.
In addition to the supervision of the business and technical ATM activity, it is also important to optimise the cost of ATMs with cash forecasting systems, relying on innovative technologies such as artificial intelligence (AI). A comprehensive AI based cash forecasting system can optimise ATM supply, reduce interests costs, avoid “out of cash” situations by detecting usage patterns, predicting withdrawals and supply to optimise processes.
Constant vigilance has to be applied in fraud prevention – it is key to monitor fraud at each and every point of interaction (devices, systems, people, etc.).
To mitigate the risk of payment fraud, financial institutions needs to pro-actively monitor and authorise transactions coming from multiple systems and multiple channels, at any time of the day. When facing a fraud case, the ability to quickly engage real time actions (action on the transaction, on the POI, the cardholder, etc.) creates a significant number of challenges.
Financial institutions need seamless processes to confront this phenomenon, while simultaneously delivering a frictionless, yet secure, digital experience to their customers. To successfully achieve this, they need to move away from a channel-driven view of fraud occurrences, whether they happen online, via cards or digital, at a branch, ATM or MOTO.
To best mitigate risk, issuing and acquiring activities need to be monitored in real-time or near real-time, and managed through a single omnichannel fraud management system, offering an agnostic customer view.
In addition to a comprehensive fraud monitoring solution, Financial institutions must ensure 24/7 monitoring services of their activities. Combined with an extensive fraud solution, a dedicated team – expert in the analysis and detection of fraudulent behaviours – can significantly reduce fraud and avoid operational risks related to fraud.
Want to know more about fraud and ATM monitoring?
In addition to providing a powerful, comprehensive and self-service solution that enables financial institutions and retailers to manage, secure and get more out of their ATM systems and networks,
HPS has acquired a strong expertise in hosting and operating payment platforms for the supervision of ATM and fraud activity. HPS provides ATM and Fraud monitoring services, alongside cash forecasting solutions for ATMs. To know more about the services HPS provides to mitigate fraud and optimise ATM business, please contact email@example.com.