The innovative technology will be implemented by Citigroup Inc. in conjunction with Diebold Inc., a company which provides self-service and ATM (automated teller machine) solutions.
The announcement was made on Monday by representatives of the ATM manufacturing giant. It appears that Citigroup has already begun trial-testing a brand-new “Irving” model, which is based on Diebold’s “Responsive Banking Concept” revealed last year.
The facility incorporates emerging technological advances in order to give users the possibility to conduct cardless transactions, which neutralize the risk of falling prey to credit card fraud.
The screen-less, self-service device dispenses cash while eliminating the need of a PIN pad, physical screen or card reader.
As a result, the new Irving terminal will be around 37% narrower and 32% less deep compared to regular through-the-wall cash machines.
The proactive solution aims to provide an alternative means of conducting money transactions, by introducing BYOD (bring your own device) access.
Cash withdrawals and any other desired financial services are authorized by connecting to the customer’s mobile device, and then easily carried out on the smartphone screen.
This time of mobile integration allows transactions to take as little as 10 seconds, while greatly improving security and making user experience more enjoyable.
Diebold’s Irving also functions thanks to its consumer-recognition technology, which permits the self-service system to identify clients through near field communication (NFC).
Access to money is granted using mobile banking methods, which include NFC, biometric iris scans and quick response codes.
This provides much more convenient and quick access compared to traditional card swipes, by streamlining the entire process of withdrawing money from an ATM.
Citigroup has been analyzing the viability of this new self-service solution ever since August, at its innovation lab located in Queens, New York.
“This is part of the growing awareness of biometrics and biotechnology in daily life. Citi is looking from the consumer perspective to see what customer acceptance would be with this kind of technology”, explained Richard Harris, Diebold’s vice president of new technology, incubation and design.
If company representatives are satisfied with the results, the 5 trillion dollars of currency that are in circulation around the world might one day soon be accessed in an entirely modern way, which brings together the digital and physical world.
The new banking concept will be presented more in depth at the financial services conference Money 20/20, which is currently taking place in Las Vegas, between October 25 and October 28.
It remains to be seen if Citigroup will indeed incorporate this state-of-the-art technology. Even if it does, it might take years before a national rollout can be carried out.
However, currently, other banking giants also have their eye on ATM cardless technology.
J.P. Morgan presented such a concept to its investors, and is testing voice and facial recognition to support this new service, while the Bank of America has already tested this type of feature and will launch a customer pilot in the first half of 2016
Other banks like Wintrust Financial and BMO Harris Bank have also been experimenting with similar technologies.
Therefore, eventually, even if the transition is lengthy, it appears that card swiping will indeed become a thing of the past.
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