The traditional Automated Teller Machines or ATMs have completely changed how we take out cash from our bank account and conduct financial transactions. However, there is also mention about the Micro ATMs that have begun appearing recently. So, what is the role of Micro ATMs and how are they different from traditional ATMs? In this article, we will discuss both types of ATMs and their characteristics and functions. Come along as we discuss these two little wonders of modern-age financial technology.
How are traditional ATMs and Micro ATMs different?
A traditional ATM is a money dispensing machine that we usually find in the cities. It is a 24-hour operational bank prototype in a machine, which one can use to take out cash from a bank account using a debit card and a four-digit security pin. The ATM machine also provides a few options to the customer, such as cash withdrawal, checking account balance, exploring bank offers and more. A micro ATM, on the other hand, is a small and handy device, operated by an accredited agent at small shops. The use of Micro ATMs is primarily focused at making basic banking services more accessible in remote areas.
Micro ATMs are located in rural and unbanked areas where ATMs are rare and the users seek assistance of the agents to withdraw the cash, whereas ATMs are usually accessed in urban areas by digitally aware users who prefer to withdraw or deposit cash independently. This is the primary distinction between the use cases of the two types of ATMs. Urban residents mostly use ATMs, while the rural people prefer using micro ATMs, which are operated by authorized agents.
The basic banking transactions are made easier by micro ATMs, which are smaller counterparts of traditional ATMs. The small local shops with Micro ATMs are essential in providing financial resources to remote and underbanked people in the country. Further, the traditional ATMs have a specific infrastructure requirement and thus are costly for the banks to install at remote locations. The Micro ATMs help in bridging this gap. These portable Mini ATMs however operate through a network of agents registered with financial institutions and banks. They play a vital role in carrying out a range of financial tasks. The customers can approach the agents conveniently, swipe their debit cards, and safely complete banking transactions.
Let us take a look at the cash withdrawal process that works differently with both the ATMs –
Difference between ATMs and Micro ATMs
Let’s find out the major differences between Micro ATMs and traditional ATMs.
1. Dimensions and position: An ATM is an automated teller machine which serves as an electronic banking outlet where a bank representative is not required to carry out basic banking services. They are huge machines and typically installed at designated areas, such as busy streets or banks. Whereas, Micro-ATMs are pocket-sized bank machines that are portable and compact. They may be found in neighborhood stores, mobile vans, or even temporarily positioned in various places.
2. Accessibility: Traditional ATMs can be found in cities, possibly close to large shopping centers or banks. Excellent for metropolitan people, but not always practical for people in rural or small communities. On the other hand, Micro ATMs are operated with the help of authorized agents and thus popular in smaller locations. Micro ATMs reach places where large ATMs are not available, bringing banking closer to villages. With micro ATMs, the customers in distant areas feel that there is a small bank near them.
3. Features and services: ATMs provide a number of services to the customer, including money transfers, mini statements, balance checks, request cheque-books, change pin number and cash withdrawals. Micro ATMs are simple machines that don’t provide too many features for their customers. The primary functions of micro ATMs are cash withdrawal, balance checks, and occasional Aadhaar-based transactions. They serve the basic needs of local residents who do not need elaborate banking services in a day.
4. User interface: A typical ATM usually carries an attractive user interface that looks like a gamepad. Its large screen comes to life as the debit card is inserted. The numerous buttons are made to handle a range of transactions. Micro ATMs, on the other hand, are not fancy machines. They have lesser buttons and smaller screens. They are more user-friendly than traditional ATMs since they are simple to operate. Micro ATMS are specifically made for people who are not much familiar with technology.
5. Ownership: Usually, large-sized banks own and operate the majority of ATMs. The cost of installing and maintaining these equipment is high and thus needs specialized and expert care. However, micro ATMs are appropriate for small towns and can be handled by the small-scale business owners and financial service providers. It’s similar to a friendly next-door business owner running a small photocopy business or ticket booking business for the community around them.
6. Connectivity: ATMs are typically part of a bank’s network in the country, they need a strong and reliable independent connection with the bank’s server to securely operate. However, micro ATMs are simpler machines and connect to bank networks with mobile data. They are operated by authorized agents in the remote areas of the country, where maintaining a steady and reliable connection for bank ATM may be difficult.
7. Financial inclusion: Traditional ATMs are primarily used in metropolitan and semi-urban areas where people are accustomed to banking technology. The real difference on the ground is made by micro ATMs who are the real financial inclusion hero. By taking banking services to places where standard ATMs might not have been able to reach, micro ATMs are actively working to fill the gap.
Conclusion
In summary, both traditional ATMs and micro ATMs are useful and save you time. Where traditional ATMs are mobile banks near your home and office, micro ATMs are placed at convenient shops in remote areas, helping anyone access basic bank account services in their neighbourhood, ensuring no one is left untouched by the Digital India revolution.