Investments in banks' ATM networks will be at the very bottom of chief information officers' information-technology budgets for the next two years, according to survey data from Aite Group LLC, a Boston-based consulting firm.
Purchases of new ATMs and ATM software came in last behind 19 other categories that chief information officers consider more important, including information security, cash management, check processing, online banking and bill payment, mobile banking, fraud management, and branch remote deposit capture, says Kate Monahan, an Aite analyst.
Chief information officers ranked information security their top budget priority.
"For ATM vendors, this does not look good for the ATM channel," says Monahan, adding she believes banks are not planning to buy much, if any, ATM hardware.
Chief information officers are focused on making the banks' services more secure, Monahan adds. However, ATM vendors can address these concerns by offering products that emphasize security, she adds.
Chief information officers have more influence over the direction of information-technology budgets than do business line executives in charge of the managing banks' ATM networks, an earlier Aite survey found.
Aite conducted the online survey of 125 chief information officers employed by 40 large U.S. banks, 40 U.S. and Canadian credit unions, 40 community banks in the U.S., and five large Canadian banks in July and August. The survey did not inquire about the size of the institutions' information-technology budgets and what percentage of their budgets chief information officers planned to set aside for the different categories. ATM