Home > Business Model, Ideas, Ideas, Innovation > Idea for a disruptive biz-model innovation for banks

Idea for a disruptive biz-model innovation for banks

There is a lot of discussions and activities around the revival of the good old ATM.

  • Some are trying to make these machines more Customer-centric like Wells Fargo.
  • Some are trying to improve the overall user experience of the ATM like Diebold.

However, the true question should be the following:

Do we even need an ATM? Is there a better, easier, faster way to manage cash than via an ATM?

The first bank to figure out the answer to this question has the potential to truly disrupt the banking industry from a cash management perspective.

One way that I think could be used is the small businesses that accept payments from a credit or debit card?

Can they not be used to function as a teller for the bank? The bank instead of charging a fee for the use of the card machine, can instead pay the business a nominal amount and convert them into cash dispenser.

All the technology that is needed to make this happen is already available. The only change is in the execution of the idea.

This is just one idea to enable this. There could be many more viable ideas.. The question is are we looking for them?

Do let me know your thoughts by posting your comments below or tweeting them to me at @rmukeshgupta.


  1. February 26, 2013 at 11:31 pm

    Exploring Mobile phones as medium for for payments & reciepts has the potential to replace ATMs, which is an extention to branches for dealing in hard currency. Airtel and other mobile operators are offering mobile services for payment and reciepts , probably more innovations are required in this field and need a similar strategy like Relaince mobile penetration in the begining of their operations , to make mobile phone a one stop for cash payment & reciepts and more success will mean more shutters on ATMs around.

    • February 27, 2013 at 9:07 am

      Thanks Vijay for sharing your thoughts.. Truly, mobile phones offer a tremendous opportunity for banks for multiple disruptive innovations… the first bank to take action and come out with a truly disruptive model will benefit a lot from the early adopters and the marketing leverage coming out of the launch…

      Hope banks are listening!

  2. February 28, 2013 at 7:01 am

    In Australia already there is minimal need for an ATM, or the need for carrying cash.
    Most retail outlets there accept cards for purchases as little as 1$ and they also dispense cash if you ask for.

    • February 28, 2013 at 7:23 am

      Super.. Then why can’t they do the same elsewhere baffles me 😦

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