Banks want to make their branch networks more efficient and Devon Watson is here to help. Watson is the vice president in charge of software research and strategy at Diebold Inc, the world's second largest ATM manufacturer, and he has been in Australia catching up with customers.ATM transaction data suggests that the use of cash machines, like the use of cash itself, is in slow decline.Watson conceded that ATM transaction numbers in countries with advanced payment systems have been falling and will continue to fall.But he believes ATMs will play a role in helping banks automate branch functions, such as cash handling for small business customers.Watson said: "Banks are transforming their branch networks, shrinking their footprints and making them more efficient. There are number of transactions that are not yet automated."Cash supply to SMEs is one of those things. Bulk deposits is another. The SME market is the domain we are focusing on."The company is developing ATMs that will offer small businesses withdrawals in any chosen denominations.Diebold, which is listed on the New York Stock Exchange, has been consolidating its position in the market. Last year it bought Australian software company Phoenix Interactive, whose systems support ATM networks. Clients include Cuscal and Westpac.Last November it launched a US$1.8 billion takeover bid for Wincor Nixdorf, the world's number three ATM manufacturer (NCR is number one).Wincor Nixdorf shareholders have agreed to the deal and Diebold is working its way through a series of approvals, with a view to completing the deal by August.Apart from its work on SME banking automation, Diebold is integrating mobile banking technology into its systems to allow consumers to tap their digital wallets to initiate a transaction or retrieve a one-off password from their phones."The other thing is use of data to engage customers at the ATM," Watson said."Banks' systems know you are at the ATM. What we are working on is allowing the ATM to deliver targeted offers. The customer could, for example, click through to a mortgage refinance offer."We have tried this in some locations and the click-through rates are high."