Diebold, Inc. has announced in a press release the introduction of Irving concept, an ATM machine that dispenses cash to the consumer without the need of an ATM card.
Citigroup, Inc. is testing the new technology at its innovation lab in New York.
Diebold said in the press release that the new Irving Concept eliminates the card reader, PIN pad, and physical screen in the ATM machine.
Consumers instead will schedule their transactions in the ATM machine via their own smartphone devices.
Diebold adds in the press release that the new concept verifies the identity of the consumer via near field communication, quick response codes or iris scan biometric technology.
Once verification is done, the ATM machine will allow the consumer to proceed with the scheduled transaction and dispense the cash.
Frank Natoli, the executive vice president of self-service technology in Diebold, adds in the press release that the role of their company is to "bridge the digital and physical world of cash."
"Our latest concepts embody a new era of banking and put the user experience at the top of the pyramid to connect consumers with their money when and how they see fit," he said.
The Wall Street Journal adds that the new technology is the latest venture of big banks to find easier and more secure ways for consumers to access cash.
Big banks are looking for a suitable substitute for ATM cards, a staple item in consumers' wallets.
The Wall Street Journal adds, though, that Citigroup may not yet decide to replace their ATM machines with the new concept.
Mass rollout of the new concept is also believed to be years away.
The Wall Street Journal adds that the costs for changing thousands of ATM's hardware would be expensive.
It would also be time consuming, which means the technology would be tested extensively before a full rollout.
However, interests of big banks in these kinds of technology mean that more consumers may see these kinds of options in the future, according to The Wall Street Journal.
Daniel Van Dyke, an analyst at Javelin Strategy & Research, told The Wall Street Journal that big banks usually wait for the product to have merit before taking an interest.
"Larger players sometimes like to wait on the sidelines a little longer to see if a product has merit before investing in it," he said.
