Before we arrive at completely self-service banking, we need a little mediation involving human beings. One form that mediation is taking is video teller assistance in the ATM environment.

Bank of America began a test of enhanced ATMs with video banking capability — called Teller Assist — in April 2013 in Boston and Atlanta. The learnings from those 12 banking locations have been analyzed, and another set of locations is set to open in Charlotte, N.C., where the bank is headquartered.

The ATMs, produced by Diebold and NCR, also have the capacity to cash checks, perform cardless transactions, and deliver cash in denominations other than the standard $20s. Going forward, the machines will be able to split deposits between multiple accounts, accept credit card payments, and accept deposits with cash back. The machine also includes a document scanner for verifying a customer using his driver’s license or other photo ID.

Video banking is the marquee feature of the machines, however, and the focus of the bank’s testing. While transaction volumes have remained stable since the video-enabled machines were installed, the ATMs are seeing more activity beyond traditional banking hours. “We are seeing customers do more after hours,” Chris Mande,  SVP and eCommerce channel executive told Bank Innovation. The bank is also seeing more activity in the early morning, with customers stopping in on the way to work.

“We all bank in different ways,” Mande said. “It’s not a one-size fits all activity.”

Video banking was made available from 7 a.m. to 10 p.m. on weekdays, and 8 a.m. to 5 a.m. on weekends — far beyond traditional bank hours, in other words.

Though the bank did not present the machines this way, the enhanced ATMs with video capability are a half-step toward a completely unmanned banking center. It is more cost-effective to have staff available on demand at a centralized location rather than standing around a half-empty branch. The new machines appeal to a broader range of customers, including the so-called unbanked or underbanked who have need of check-cashing and cardless capabilities.

“The customer has dictated they want choice,” Mande said, and the enhanced ATMs, especially with the future features, allow customers to carry on their banking activities nearly as easily as with a full-fledged bank.

Branches will still be needed for consumers seeking loans and for business customers, but otherwise, the enhanced ATM serves that role far more efficiently.

“The advantages are operational costs and speed, it’s faster for customers,” Mande said. Video tellers step in as needed, but generally there are few differences between the way video tellers function and the way live tellers would function. Neither, for example, plays a role in evaluating the risk of a transaction. “There are systems making decisions on your behalf,” Mande said.

There is also potential for online applications. uGenius, a provider of video banking capabilities that was bought by NCR at the start of 2013, was preparing online video banking functionality in late 2012.

Mark Schwanhausser, director of omnichannel financial services at Javelin Research, believes it goes beyond the balance sheet. “Clearly there are potential cost-savings to reap from installing these souped-up ATMs, with consumers choosing to conduct more transactions through a cost-effective ATM rather than at a branch,” he told Bank Innovation. “A critic might spin this as another move by banks to reduce face-to-face service, but I see it as a key upgrade that can lead to better services. Having the video teller’s handholding at extended hours is more convenient. Being able to cash checks down to the penny, and perhaps shorten holds on funds is a plus. But I also see great potential for multilingual services that cannot be provided consistently in branches.”

He elaborated on the importance of reaching non-English speaking customers who might otherwise avoid traditional banking services. “Centralizing multilingual tellers in a customer service center would enable larger FIs to route ATM transactions to tellers who can speak Spanish (priority No. 1), Mandarin, Tagalog, Japanese, and so forth. When you consider the importance of language in building trusting relationships, this could be a huge advantage for FIs seeking to serve ethnic communities more effectively.”

Video banking is an attempt to humanize the technology that is rapidly assuming a larger role in our lives. But it may not be necessary. A Cisco study from earlier this year found that while 80% of bankers think customers want video banking capabilities, only 34% of customers actually do.

Consider it an insurance policy as banks move steadily toward a self-service banking experience entirely unmediated by human interaction from the bank side. It works out financially for the banks, and it seems to be what most customers — particularly the young completely unused to bank branches — want.

Bank of America holds assets in excess of $2.1 trillion.