The authors have created an innovation-centric overview of the ATM. It is a fun read. I am old enough to remember when ATM transactions were free and ATM networks allowed for free transactions from a machine branded with a bank you did not use.
Today, ATM fees range from $2.00 to $5.00, no matter how much cash you receive. The average is about $3.00 per transaction where I live. This means that on a $60 cash withdrawal, we are paying a five percent surcharge at a time when the banks only pay 1.2 percent to 3.4 percent interest on savings. Once source says the average ATM user does this seven to eight times per month. We are truly paying greatly for the convenience.
Source: Strategy + Business, June 27, 2017.
The example of the ATM shows that human-centered design doesn’t necessarily need person-to-person interaction. Customers prefer the convenience of the machine to conversations with bank tellers. In the end, the ATM transformed banks into a role model of business empathy: for understanding customers’ feelings, behavior, and needs.
INSIGHTS: Recently, a sales rep shared a story about taking a client out to lunch after negotiating a large order to meet a rebate level earning the client an additional one percent. At the end of the lunch, the client excused himself and went to the ATM where he got $20 needed for his child’s team fees. He paid a $3.50 ATM fee for that $20, a 17.5 percent premium for the cash. Same client, same day … two different paradigms. Think about how many times we argue over one percent and turn around to pay a large premium to get our cash.