No cash card required! Evolving ATMs Sep 9 at 14:17

"I forgot my wallet at home." In such a case, it may be useful to have an ATM that can withdraw cash with facial recognition. Next spring, ATMs will be born that allow you to deposit and withdraw cash with facial recognition even if you do not have a cash card.

ATMs are under pressure to change due to the spread of cashless payments. We covered the latest developments. (Economic Affairs Department reporter, Kentaro Makata)

Go on the offensive with "high-performance" ATMs

On September 9, I visited Seven Bank's business presentation. What was announced was a service that utilizes "face recognition" technology.

One of them is the use of facial recognition to open an account or change your address at an ATM.

I also experienced it in the field.

First, scan your My Number card at an ATM. Your face is also registered, and information such as name and address is automatically entered.

After that, set a PIN and enter your phone number, occupation, and purpose of use. The account was opened in about 3 minutes.

These services will be launched on September 9 at more than 26% of the ATMs of this bank nationwide.

Starting next spring, the way money is deposited and withdrawn will also change. All you need to do is enter your face recognition and PIN. This means that you will no longer need a cash card.

In the past, when I have covered major disasters, I have seen many cases where people who have been affected by the disaster have lost their cash cards and cannot put down their money. Deposits and withdrawals through facial recognition can also be useful in an emergency.

The company plans to make the new service available at all ATMs by the end of fiscal 2024 (end of March 2025).

Is it safe?

It could certainly come in handy. But is the security side okay? Suddenly, I felt anxious. I asked the company about that.

According to the company, the face recognition system adopted is a system developed by NEC, a major manufacturer, and when registering a face in advance, the face is authenticated by combining a photo such as a My Number card or passport with the person's face.

This means that it is difficult for others to impersonate you at the registration stage. Of course, even if you hold your photo or mask over the ATM camera, you will not be authenticated.

Boosting profits with high-performance ATMs

On this day, the company also announced a new concept using ATMs. Administrative procedures such as hotel check-in, hometown tax payment, and receipt of benefits can also be completed at an ATM.

The idea is to be able to play a role in the "window" of various industries that people used to do.

Masaaki Matsuhashi, President
of Seven Bank: "I feel it's time to change the name ATM (Automatic Teller Machine)"

On this day, Masaaki Matsuhashi, president of Seven Bank, revealed that the company is considering changing the name ATM itself in the future.

What are the changes surrounding ATMs?

Why is this company promoting the sophistication of ATMs? The background is the change in the business environment surrounding ATMs.

In 2013, more than 11,2022 ATMs were installed nationwide. However, in 20, it fell to nearly 9,<> units, roughly <>% less. Many financial institutions are now adopting a strategy of "reducing" ATMs.

One of the reasons is cost. According to bank officials, the maintenance cost of each ATM is about 1,1 yen per month. This is because there are costs such as maintenance and inspections and electricity bills.

Another major reason is the spread of cashless payments. According to the Ministry of Economy, Trade and Industry, the ratio of cashless payments in Japan in 30 will rise to 1%, and the amount will be 2022 trillion yen. Opportunities to use ATMs, especially among young people, are decreasing.

New revenue with new services

For this reason, Seven Bank is promoting the sophistication of its ATMs and increasing the profitability of each ATM.

Of the company's ordinary revenue of 1.1549 billion yen last fiscal year, the ATM business accounted for more than 6%. Currently, there are more than 2,7000 ATMs, mainly at convenience stores, but it is difficult to dramatically increase the number of ATMs installed in the future.

In addition, significant growth is no longer expected from fee income from deposits and withdrawals alone.

The company expects to secure a new revenue of 2025 billion yen by the end of fiscal 40 by improving the functionality of ATMs.

Maintaining customer service through strict regional bank alliances

On this day, representatives of Shizuoka Bank also took the stage. We have announced that we will partner with Seven Bank in the ATM business.

The bank's deposit volume is the fifth largest among regional banks. It has a network of 5 branches and 206 ATMs.

Even for such a large regional bank, it is a heavy burden to maintain them, and the challenge is how to reduce fixed costs to the extent that customer convenience is not impaired.

With this partnership, some of the teller operations will be possible at Seven Bank's more than 159,1000 ATMs in Shizuoka Prefecture. Even if you do pay a fee, you can expect more benefits than that.

Kota Oishi, General Manager
of Digital Channel Sales Department, Shizuoka Bank: "In the preliminary demonstration experiment, many people used Seven Bank's new service in areas where Shizuoka Bank branches are not located or when their own ATMs are not operating.

ATMs continue to decline nationwide. How will that role change in our lives?

Kentaro Makata, reporter of the Ministry of Economic AffairsJoined
the Obihiro Bureau
,
Takamatsu Bureau, and Hiroshima Bureau in 2011 before joining the current department