Advances in Financial Technology

Financial technology continues to transform the way consumers do business, banks operate and features are introduced. There are certain technologies that will completely change the way money is handled and how data is shared:

• ATMs

ATMs continue to introduce new features into the market. Intelligent deposits, where an envelope or pen is not needed is very popular, and the addition of bill pay by ATMs is still continuing to catch on. Even with these types of technological advancements already in the market, there is a new wave of ATM technology on the horizon being introduced that will support contactless payments, including ATM transactions by smartphone, GPS tracking, biometric authentication and iris recognition, to help in preventing hacks.

• Blockchain Technology

Blockchain helps decentralize financial management from one authority to an entire network of computers. This technology has the potential to be safer, and improve certain areas of banking. When fully implemented, it will change the landscape of the banking industry as we know it.

• Automated Employees

In a 2017 interview with Bloomberg TV, Vikram Pandit, former head of Citigroup, Inc said that up to 30 percent of banking jobs could be eliminated within the next five years. With machine learning and cloud computing automating operations, this is no longer an estimation, but may soon become a reality.

• More Online-Store Experiences

Although some people may prefer visiting an in-store branch, the future banking experience may become one of an online store. Customers are quickly migrating to banking apps and ATMs that allow basic banking transactions. The future of banking may involve kiosks, where customers can handle in-store transactions, reserving one-on-one interactions for special needs and requests.

• Non-Banks

Technology has given banks an opportunity to deliver faster experiences that have the transparency customers want. Financial service providers that are not regulated to the finance industry have the potential to grow, as they can devote a higher percentage of their assets to employing technology that offers innovative solutions on a larger scale than traditional banks.

FinTech banks are coming at a rapid pace. Regulators have accepted applications for national bank charters from financial technology startups that will completely change the landscape of traditional banks. As it stands, a few fintech banks are offering checking and savings accounts, overdraft protection, and direct deposit, with more financial technology companies on the way.

• Digital and Mobile Banking

Banks are heavily investing in digital banking technology, with artificial intelligence solutions leading the way. Customer engagement continues to grow as financial institutions employ the use of chatbots and other new innovative methods to deliver services.

• Wearables

Wearables are also a new advancement that will integrate the banking experience. Bank may start using Bluetooth beacons to greet customers on their smartwatches as they enter a location, and bank tellers may very well start wearing smart glasses to process customer banking information. Using smart devices on a wider scale can also enhance convenience and build loyalty.

The best part? Most of these integrate the use of ATMs.

Ways to Protect Against ATM Card Skimming

Thieves who steal money from people by skimming their ATM card take in millions of dollars each year and their tactics are becoming more sophisticated all the time. They do this by setting up ATM machines to read account and PIN numbers and then hack into customer accounts to drain them of funds. This involves installing a small device on an ATM machine that electronically reads account numbers via the debit card’s magnetic strip. Some other methods that thieves may use to skim customers using an ATM include:

  • Placing a tiny camera on the ATM to record people’s keystrokes and take pictures of their debit cards.
  • Placing a thin duplicate keypad over the original keypad.
  • Attaching a false front to the ATM machine. When a customer inserts his or her card, the machine comes back and says out of service even though it has already read and recorded the card information.

Anyone who uses an ATM machine can become a victim of this sophisticated form of fraud. Below are several tips for how you can prevent this from happening to you.

Look Closely Before Completing Your Transaction

ATM thieves often look for machines placed outside in poorly lit areas to target. Before you use any ATM, observe your surroundings to see if anyone seems to be loitering in the background. It is also a good idea to study the device’s card reader and even shake or tug it if you feel suspicious that a thief has tampered with it. Typically, the only thing holding a keypad overlay in place is double-sided tape or glue. You should also check the machine carefully for possible hidden cameras. If you notice anything out of the ordinary, notify the financial institution or call the police.

Cover ATM Keys While Using Them

The purpose of placing a tiny pinhole camera is to capture a customer’s PIN as he or she enters it. To prevent this, place something over the keypad and then slip your hand underneath it to enter your numbers. It might look strange to others but it can prevent you from becoming the victim of identity theft.

Check Your Banking Transactions Every Day

Most banks provide online access to their customers to view their account activity. Get into the habit of checking yours every morning to make sure that you recognize every transaction. Notify your bank immediately if you know that a cash withdrawal or debit card transaction is not yours. The bank will deactivate your debit card and temporarily freeze your account while it investigates the fraud. If you check your banking information rarely or never, the person who has access to it could have several days to spend your money.

Be Vigilant When Traveling

Areas known to be tourist destinations are especially attractive for would-be fraudsters. Be sure to put a travel alert on your card before you leave and to only use ATMs located inside of a bank or convenience store.

TransNational ATM cares about keeping consumers safe. Please contact us if you would like additional tips to avoid ATM fraud.