Smart teller machines replace ATMs at banks

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By Lee Kyung-min

• Published May 5, 2024 4:35 PM KST
• Updated May 6, 2024 4:37 PM KST

Banks are installing smart teller machines (STMs) as an alternative to the old automated teller machines (ATMs) to help expedite digitalization.

The new type of machines can provide nearly 80 percent of functions done by human tellers, effectively handling almost all in-person customer needs.

This is encouraging banks to bring in more STMs as they continue to reduce their respective offline branches and the number of ATMs amid the growing use of mobile and online banking services.

The number of ATMs that commercial banks operate came to 17,105 as of June last year, down 31 percent from 24,832 in 2018, Financial Supervisory Service data showed Sunday.

In contrast, Korea's four leading commercial lenders — KB Kookmin, Shinhan, Hana and Woori — have installed a combined 704 STMs as of March, up 115 units from a year before.

With STMs, customers can open bank accounts, have debit cards issued, open online and mobile accounts and pay utility bills even on weekends.

Video calls with bank employees are available if they need further assistance.

Banks are adopting measures to facilitate STM services.

Hana has assigned a bank employee as an STM manager at its branches who can help customers who are having difficulties using the machines.

KB Kookmin plans to increase the number of STMs in branches that receive a high number of visitors.

Shinhan plans to install a "quick menu" to provide services customers frequently seek at teller windows.

"STM has greater cost advantages and is a better solution to advance digital finance," an industry official said.

Related data from the Bank of Korea showed that the number and volume of cash transfers using ATMs continue to drop due to the increased use of online banking.

The amount of cash transferred and withdrawn through the cash dispenser network, including ATMs, came to a combined 14.8 trillion won ($10.8 billion) in January, a drop from the peak of 30.2 trillion won in July 2015.