"When fully integrated with (the) core, the technology becomes truly self-service, with customers and members able to complete most transactions on their own – but may choose to connect with a teller," the report stated. "Without full core integration, ITMs still deliver high efficiency and customer experience, but require more FTE remote teller support since the video teller is completing the transaction on behalf of the customer."

The report listed another ITM challenge as identifying locations for installation, with 63% of industry respondents naming the process of assessing the most suitable location on a branch site as an implementation challenge, and 54% naming identifying branch locations where ITMs are feasible as an implementation challenge.

Adrenaline also found that financial institutions are overestimating consumers' satisfaction with ITMs – while 97% of financial institution survey respondents said their customers/members are extremely or very satisfied with ITMs, only 52% of consumer survey respondents agreed with that statement. And, according to the report, satisfaction with ITM performance appears to be lower for financial institution staff members who work closely with the machines themselves. Ninety-seven percent of C-suite staff said they were at least somewhat satisfied with ITM performance, compared to 78% of facilities managers, 76% of marketing directors and managers, 70% of member/customer experience managers and 55% of IT staff members. However, the report noted, "As more numerous and more frequent deployments occur – and as manufacturers continue to innovate and improve – we expect to see a positive shift in IT's experience and perception."

The research included 15 one-on-one interviews with U.S. bank and credit union executives, and consumers surveyed were between the ages of 18 and 65, in good standing with their financial institution and considered household financial decision makers. Adrenaline collaborated with research firm Gauge Insights to conduct the online surveys and noted a margin of error of approximately 3%.

Other report findings included the following:

• 25% of financial institutions currently deploy ITMs, and 62% of those with ITMs plan to extend deployment across their full network in the next three years.
• Of institutions that have deployed ITMs, 75% reported better overall outcomes, 97% reported Net Promoter Scores as being as good or better than for other channels, 77% reported sale close rates via ITMs as being better or equal to other channels, and a 60-70% improvement in branch effectiveness due to cost savings and increased sales.
• 50% of consumers over 55 preferred in-person banking to ITMs, and 33% of all consumers viewed ITMs as "less personal."
• For most financial institutions with ITMs (82%), the machines are located in branch lobbies and are available for use 24/7.
• Pre-ITM deployment, more financial institutions (40%) named ongoing cost as an initial concern than any other initial concern. However, post-ITM deployment, 47% of financial institutions said their initial concern of ongoing cost had been resolved.

In advising banks and credit unions on best ITM practices, Adrenaline said it's important for institutions to recognize when it's the right time to implement ITMs. Some signs that it may not be the right time include being in the middle of a core system conversion, having an over-penetrated market presence, and not having the ability to support ITMs with other service channels as part of a hub-and-spoke network.

"For many banks and credit unions, ITMs align well with their retail delivery strategies, offering the ability to leverage self-directed formats that connect larger branches while delivering the experiences customers want with the efficiencies organizations need," the report stated. "For that reason, ITMs appear to be a strong investment. A custom ITM program purpose-built for the individual financial institution's retail delivery strategy that is also designed around deployment best practices is critical to ensuring success."

Adrenaline operates offices in Atlanta, Portsmouth, N.H., and Toronto, Ontario, Canada. According to its website, the company's clients have included at least nine credit unions.