All about Kiosk Banking – Microbanch, Services, Advantages
August 26, 2021
What is Kiosk Banking?
Kiosk is a small cubicle powered by AI technology to enable various functions and transactions depending on the point of deployment. In terms of banking, Kiosk facilitates various cash and cashless transactions without the need for customers to visit the actual bank. This sophisticates the customers’ banking experience, preventing the need to get to the branch and wait in long queues for simple transactions.
It was primarily introduced by the Government of India to boost financial inclusion, especially in rural areas where it is not really feasible to include the bank branches.
Why is Kiosk banking referred to as Microbranch?
The main purpose of a kiosk is to sophisticate customer experience(CX) by eliminating the need to visit a physical branch. It sophisticates consumer financing through its direct link to the central servers of the bank allowing various functionalities. It capsules all the services available at a bank into a kiosk and hence the name Micro branch.
What is the difference between an ATM and a kiosk?
ATM – Automated teller machine is an unmanned banking terminal set up at specific locations to enable the customers to access mainly cash transactions. The customers need their debit card with their unique PIN to access these functions. They can withdraw/deposit cash, pay bills, etc using an ATM.
Kiosk on the other hand is an upgraded version of the ATM supporting not just cash transactions, but also various cashless transactions and banking services such as internet banking, loan application, passbook updates etc. The basic functions offered in an ATM are further expanded and coupled with a plethora of other services in a kiosk making it a microbranch.
What are the services offered by a kiosk bank/micro-branch?
Kiosk banking has the capability to facilitate various financial services standing up to its notion of a mini-bank or a microbranch. A few of the services offered by the kiosk include-
Account opening – The kiosk bank allows the opening of an account in the bank allowing customers to access various features and services provided by the kiosk bank.
Fund Transfer– The kiosk allows intra-bank as well as inter-bank fund transfer through secure channels with minimum or no charges applied.
Cash Deposit– The users can also deposit their cash into the account through the kiosk without visiting the actual branch.
Cash Withdrawal– The customers can also withdraw amounts from their accounts using authorized fingerprints or authentication codes specific to their own account. This prevents any fraudulent usage of the services offered by the kiosk.
Passbook entries– The kiosk can also update the passbook entries of the customers with the latest transactions enabling them to stay up-to-date with their account information.
Internet banking– The users can log in to their bank account online through the kiosk and perform various e-banking transactions through the bank server.
Cheque Deposits– The customers can deposit their cheques to be encashed in the kiosk.
Account information– All the information related to the account can be accessed and modified through a kiosk. The customers can also access their transaction history and mini-statements.
Loan Facility– The kiosk provides the customer with information regarding various loans offered and the customer can also apply for the loan.
Added to this, various other features can be accessed through the kiosk without the need to visit the bank. The banks can also customize the kiosk in order to provide much more additional services depending on the needs of the customer.
What are the advantages of kiosk banking compared to physical banking?
Owing to its feasibility and functionality, kiosk banking offers a lot more advantages compared to conventional banking.
Few of them are-
Nearest Location– Kiosk banking facilities can be located in key areas nearest to the customer locations. This makes it easier for the customers to access the financial services without traveling to the banks located far-off from their residence.
No long queues– Banks are usually crowded with customers having various demands and necessities. Customers visiting kiosks can skip the long waiting queues and have a seamless experience availing the financial services offered by the bank.
Banking services without visiting the bank– Customers can avail most of the banking services without actually visiting the bank
Extended Service Hours– Banking kiosks usually offer extended service hours compared to standard banking hours. As a result, customers can avail the services for longer hours without the fear of being late to the bank.
Safer Banking experience– With the world running on social distancing and minimal contact, kiosk banking is the safest option compared to the physical interactions happening at the physical branch.
Hassle-free and faster experience– The manual services offered at the bank are usually time-consuming involving tedious and complicated tasks. Kiosk on the other hand facilitates the operations with the minimal required information and generates quick response providing a seamless and efficient experience.
How can kiosk banking/branchless banking increase the customer base and reach of the bank?
Often, banks fail to service the majority of the customers due to a lack of proximity between the customer’s location and the branch of the bank. While this scenario exists majorly in remote areas, it is also a prevalent hindrance in the cities. Opening a physical branch in these remote and inaccessible areas is often uneconomical as well as not feasible for the banks. As a result, banks lose most of the customers existing in these areas.
Kiosk banking, however, allows the bank to set up a micro branch at these remote areas to provide the residents the same quality of service provided at the physical branch. This encourages the customers to explore the services and also makes them accessible to the people living in the most remote areas. As a result, the bank experiences an expansion in it’s customer base.
How DaveAI’s micro branch is different from a normal kiosk?
DaveAI incorporates all the features and services offered by the kiosks and augments it with the power of AI to facilitate further exploration of branchless banking. The solution provides the customer with a personalized digital experience by deploying Kiosk banking at scale. It provides Next-Gen features through-
Sale Process Enhancement– The interactive kiosks offered by DaveAI enhances the sales process of the bank through Discovery Led User Interface coupled with GDPR Compliant Facial Detection. This allows the intelligent kiosk to identify the customer’s physical attributes through the camera integrated into the kiosk and affiliate his preferences and interests through his/her selections. This experience with the user will allow the kiosk to provide him with products and services aligned with his interests in consecutive interactions. As a result, the sales process is personalized completely to the customer.
Speech and NLP powered Conversational Intelligence– The Kiosk has the capability of conversational intelligence powered by Natural Language Processing. This allows the users to talk to the integrated avatar in the kiosk asking various questions or clarifications. The avatar can then respond with the relevant answers or carry out the specific function required by the user. This sophisticates the interaction by not limiting it just to touch or text, but also facilitating speech interactions.
Cross Channel Integration and security– DaveAI’s branchless banking solution can be integrated across various channels and customer service points. It can also be integrated into the already existing kiosks or set-ups to augment and upscale the overall performance and services offered. The information obtained is securely stored in the bank’s central server and hence protected from any external influences.
Reduced Operational Costs– Opening a branch for a bank is not only time-consuming employing a lot of resources, but also incurs a huge strain on the expenses of the bank. Kiosk Banking on the other hand is a much more cost-efficient option bank can resort to in order to minimize the operational cost incurred but providing the same quality of services at a much quicker pace.
How does DaveAI kiosk banking/branchlesss banking solution sophisticate the customer interaction?
Powered by state-of-the-art artificial intelligence and patent-pending Empathetic AI technology, DaveAI‘s platform has the capability to understand customer preferences and behaviour. Through the efficient use of GDPR Compliant Facial Detection and Speech and NLP powered Conversational Intelligence, the platform provides real-time personalized assistance to customer queries and seamlessly enables them to carry out financial transactions.
How can DaveAI help create a microbranch?
DaveAI can help banks set up their microbranch with the provision of an AI powered Kiosk integrated with a virtually intelligent and conversational avatar allowing for seamless customer interaction. The kiosk engulfs customized services and products personalized to the bank’s branding. By deploying these micro branches at scale, DaveAI provides the customers a Next-Gen Digital Banking experience.
Want to explore how DaveAI can further assist you in your journey towards the digital era?
A. Kiosk Banking refers to a simplified form of banking offered through a kiosk without the requirement of the customer to visit the physical branch. He/She can avail all the services provided at the bank through the kiosk.
Q2. What is the mini bank?
A. Kiosk being a simplified version of the bank being able to provide all of the services in a much simplified way, is often referred to as a mini bank or a micro branch.
Q3. What is a kiosk used for?
A. Kiosk are primarily booth like machines placed at high-traffic areas to offer a seamless service assistance to the customers. In terms of banking, kiosk is used to sophisticate the customer’s banking experience through virtual interactions and automated processes.
Q4. What are the types of kiosks?
A. The major types of kiosks include-
-Information kiosks- These kiosks convey information and are also capable of providing solutions.
– Internet Kiosk- These kiosks are primarily used to provide internet connection over a limited area in any environment
– Wayfinding kiosk Machine- As the name stands, these kiosks help in generating a mapping system for smaller areas. They can provide with both 2d and 3D maps
-Payment Kiosk Machines- These kiosks can accept coins and notes in various shapes and sizes to facilitate payments.
– Ticket Kiosk Machines- These kiosks provide the commuters or visitors with chip based tickets or tokens for various purposes.
Q5. Why do we need a kiosk?
A. The conventional method of visiting the branch for all the purposes is often time-consuming and not feasible in terms of distance. Kiosk on the other hand, offer a more convenient service with a quicker solution.
Q6. Where are information kiosks used?
A. Information kiosks are used at various customer service points in various sectors like banking. hospitals, railway stations etc
Q7. What is the difference between a booth and a kiosk?
A. A kiosk is a machine set up at specific locations to serve various purposes depending upon the business and the requirements. Booth on the other hand is a much broader umbrella covering any structure built up to serve a purpose of sale, assistance, service provision etc.