Bank of America (BOA) has applied to patent a blockchain-powered ATM network to streamline its volume cash handling business. The second-largest U.S. bank wants to leverage the benefits of blockchain to improve the efficiency and effectiveness of its cash handling operations.
‘Blockchain ATM’ Solution
BOA’s latest patent describes a new cash handling device, similar to an automated teller machine (ATM), which will utilize distributed ledger technology (DLT) to accelerate transaction speed and improve accuracy. In addition to improving the operations of ATMs, the solution could also be used to track transactions.
The patent document reads:
“Blockchain technology may be used by automated teller machine to accelerate transaction speed and/or facilitate other types of transactions in addition to ATM transactions like cash withdrawals and deposits, such as gift registry transactions.”
A cash handling system assists banks in dispensing and counting cash as well as tracking and managing their cash flows. However, aspects of cash handling across banks’ operations are often hindered due to communication difficulties between financial entities. BOA says that their blockchain solution would help ease these challenges by enabling real-time request, validation, and completion of transactions, as well as real-time reconciliation. This would allow participating institutions to quickly and accurately record and share cash handling data.
The document explains further that integrating blockchain with cash handling devices would enable customers without existing relationship with a participating financial institution to transfer money across the same ATM network or even access point-to-point video communication using the ATM.
Bank of America is one of the most active leading banks seeking to secure protection for inventions and ideas related to blockchain technology having filed more than 50 blockchain-related patents as of August this year. By proposing the “Blockchain ATM” solution, BOA hopes to streamline the way banks manage cash handling data and bring enhanced efficiency to volume cash handling operations. The benefits of blockchain in banking goes beyond cash handling process improvements.
A recent analysis from McLagan and Accenture found that banks are expected to save up to $27 billion on cross-border settlement transactions by the end of 2030 with the deployment of blockchain technology.