A bank issues a PIN to customers when they visit a branch office and state their PIN does not work. The bank IDs the customer, and obtains a PIN Offset number from their central operation area; provides the PIN to the branch person who provides it to the cardholder. Than both the branch person and cardholder go to the front of the ATM to ensure the cardholder changes the PIN. The bank feels this is customer service, especially for cardholders going on vacation and have fogotten their PIN.

What are the risks, and is this something other Financial institutions are doing?

Does the branch person know the customer's PIN?

every bank i've worked at and banked with has a process to issue pins via a random generator right on the spot, with only the customer, who is picking the pin, knowing what that number is...

although if you use the route you describe and ensure the customer changes the pin, there does not seem to be much issue

Yes, the PIN is provided to the branch person first who provides it to the customer. The branch Rep and customer both go to the front of the ATM and the customer changes the PIN.

What are the Banks that you know that provide this type of service?...when we contact banks in our area they do not provide this type of service due to Compromise issues.

I would have a very difficult time with the branch person knowing the customer's PIN.

The initial question was regarding a branch person knowing the new PIN and being there as the customer changes to the new PIN. I would only go along with that if it were a temporary PIN and the customer was prompted to set up a new PIN known only to the customer.