Digital transformation is changing life of both banks and their customers by offering a better experience in services and allowing banks to perform operations at their efficient best. With the introduction of ATMs, the need of a customer to visit a branch to perform basic banking operations like depositing/withdrawing money, Requesting Mini Statements, Balance Enquiries, etc. has considerably decreased. This is possible because of a Transaction Switching Solution, which helps ATMs to perform transactions remotely without human intervention at the bank’s end.
A Transaction Switch is a switch which connects Transaction Interface Platforms like ATMs, Micro ATMs and POS Machines, with a country’s Central Payment Switch, various Card Networks and Banks in a network. The switch performs tasks like acquiring, routing, switching, authenticating and authorizing a transaction. It receives transaction requests from an interface and obtains authorization for transaction from defined hosts i.e. banking hosts for account authorization of debit cards or credit cards and performs a requested transaction. A transaction Switch also has Pin Management Module (Hardware Security Module, Software Security Module) that creates an added layer of security for the user. It can monitor a particular ATM for its cash inventory requirement and operational status of the ATM. It also features card management system, reconciliation system that reconciles transaction statements at the end of the day and connects to the existing Core Banking interface without the need to migrate to a different system altogether.
With the current adoption of Digital currency, the use of Credit Cards and Debit Cards has increased drastically. Thus the implementation of a Transaction Switching solution has become necessary for a bank. This would help a bank offer its customers a good and hassle free banking experience eliminating the need to visit the bank branch and help perform basic transactions. A Transaction Switch helps in performing Financial transactions like cash deposit, cash withdrawal, fund transfer, cheque deposit and Non-Financial transactions like balance enquiry, cheque book request pin change stop cheque etc. at the ATMs and perform sale transactions with the help of POS machines.
Implementing a Transaction Switching Solution enables banks to reach various remote locations by setting up ATMs where sometimes it is not possible to setup a bank branch. Installing ATMs at various locations have eased life of customers and has helped bring change in the way they can reach banks to perform basic transactions and reduce the dependence on bank’s physical operation hours. Furthermore, with easy access to an ATM in the nearby locality, the need for maintaining cash reserves at home has reduced. This encourages customers to deposit money in the bank and withdraw only when needed.