Banks ‘need to invest in tech’ in post-Covid world

‘The pandemic has been a kick up the backside for institutions’

THE coronavirus pandemic should give banks a “kick up the backside” to invest in cutting-edge technology, according to one of the world’s largest cash machine makers.

Diebold Nixdorf said banks need to make access to cash in the post-Covid world one of their top priorities.

The company said it expects the coronavirus crisis to see cash transactions plummet by 30 per cent over the whole of 2020 and drop by up to another 10 per cent in 2021.

But with more bank branches closing each year, especially in the face of the pandemic, it believes ATMs can still fulfil a vital role in ensuring communities continue to have access to cash.

Matt Phillips, vice president and head of financial services for Diebold Nixdorf in the

UK and Ireland, said the industry must come together to roll out ATMs with deposit-taking abilities, along with new technological features such as mobile phone authentication, biometrics and facial recognition technology.

He said the “technology is there”, but there is not always a willingness among financial services firms to invest in it.

“This will accelerate the need for more technological transformation than we have seen historically,” he said. “Some of the financial institutions are laggards when it comes to technology.”

He added: “Post Covid-19 and the way consumer behaviour might change is a bit of a kick up the backside for these financial institutions.”

Cash use has plummeted during the coronavirus outbreak, with many shops encouraging people to pay by card, causing ATMs to be used less

ATM network Link recently found cash withdrawals were down 60 per cent on average across the UK in April amid the lockdown as people turned to plastic.

And a new poll by consumer group Which? found that one in 10 people have actually been refused by shops when trying to pay with cash during the lockdown.

However, there are around eight million Britons who say they would struggle without access to cash, according to a recent Access to Cash review report.

“Until consumer needs change, then cash is here to stay,” added Mr Phillips.

He said ATMs could be used to better effect to help communities with dwindling access to cash.

But he also called for “collaboration” between banks and cash machine makers to make it happen.