Oct. 09--BMO Harris Bank is the latest financial institution to test "cardless ATMs," which allow consumers to order cash using their smartphones without having to fiddle with their debit cards when they get to the machines.
The Canadian-owned bank, the second-biggest deposit gatherer in the Chicago area, said it's "piloting a mobile app" with "a number" of workers "that would offer a more convenient alternative to withdrawing funds from an ATM," spokesman Jim Kappel told the Tribune Wednesday.
The app would help reduce the time that a customer spends at an ATM, he said.
"While our testing is limited at this time, we do plan to expand the testing to include customers, and then eventually roll it out across our entire network," Kappel said. A timetable hasn't been set, however.
BMO Harris Bank is at least the second bank in the Chicago area's Top 10 to use cardless ATMs. The other is Wintrust Financial, which confirmed its employee test on two ATMs in July.
Rosemont-based Wintrust, which runs 15 community banks in the Chicago area and Wisconsin, plans to complete its rollout at 180 ATMs by the end of the first quarter, Tom Ormseth, a retail banking executive with Wintrust, told the Tribune Wednesday.
Wintrust's app works on iPhone and Android phones. After a customer connects a debit card to a mobile app, he or she can tap on the app to choose the amount to withdraw before visiting an ATM. Then when the customer gets to the ATM, he or she presses a button to conjure up a QR code. He or she scans the code on the ATM, which then prompts the machine to deliver the cash.
BMO Harris Bank's plans to use cardless ATMs was first reported Wednesday by CNN Money, which is covering the Money2020 conference in Las Vegas this week. It said City National in New York and New Jersey is also running a pilot.
Mary Monahan, of Javelin Strategy & Research, told CNN Money that cardless ATM transactions using technology from financial services provider FIS generally take less than 9 seconds compared to 30 or 40 for a traditional ATM withdrawal.
Rounding out the Chicago area's Top 10 in deposit market share are Chase, Bank of America, Northern Trust, Citi, Fifth Third, PNC, PrivateBank and MB Financial.
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