2015 ATM AND SELF-SERVICE SOFTWARE TRENDSnmgprod.s3.amazonaws.com/.../kal_guide_2015_v3.pdf · In...

2015 ATM AND SELF-SERVICE SOFTWARE TRENDS

DEVELOPED AND PUBLISHED BY SPONSORED BY

© 2015 NETWORLD MEDIA GROUP 2

CONTENTSPage 3 Introduction

Page 5 Chapter 1: Chapter 1: Increased Focus on ATM Security

Page 8 Chapter 2: The Customer Experience

Page 12 Chapter 3: ATM Estate Management

Page 14 Chapter 4: Branch Transformation

Page 18 Chapter 5: The Future of the ATM

Page 20 Looking Back: Reflections on Past Guides

Page 24 Appendix 1: Analysis of financial institution survey results

Page 36 Appendix 2: Analysis of survey results from vendors/IADs/service companies

Page 40 Contributors

Page 41 Sponsors

Published by Networld Media Group © 2015 Networld Media Group Written by Kim Schneider, contributing writer, ATM Marketplace Tom Harper, president and CEO Kathy Doyle, executive vice president and publisherSuzanne Cluckey, editorTiffany Smith, custom content editor


In its eighth installment, the “ATM and Self-Service Software Trends 2015” guide moves in an exciting new direction by focusing keenly on the survey responses from industry insiders to provide financial institutions with a comprehensive industry forecast. In addition to survey respondents, ATM Marketplace reached out to industry experts across the globe and asked for their opinions on where self-service systems and bank branches are headed.

With more than 700 survey participants representing the global self-service market, ATM Marketplace has compiled a map for the future covering the most critical areas for financial institutions (FIs). From security and new functionality demands to customer experience, marketing and transforming the traditional bank branch, this guide outlines the critical role of the ATM now and for the foreseeable future.

Survey demographicsOf the 742 survey respondents, 49.1 percent identified as FIs, while the remaining 50.9 percent identified as “other.” For geographic locations, an almost equal weight of respondents reported base operations in North America, Europe or the Middle East and Asia (29.1, 27.9 and 23.8 percent, respectively).

INTRODUCTION

USA, Canada, North America

29%Asia24%

Australia4%

Europe or Middle East28%

Central or South America7%

Africa9%


Participants with an ATM estate of more than 2,000 machines represented the bulk of survey respondents at 33.7 percent, while the 501 to 2,000 machine range followed closely at 28.8. Those representing smaller ATM portfolios entered in at 17 percent with 101 to 500 ATMs, and 20.4 with 1 to 100.

For the number of bank branches represented, having between 1 and 100 comprised the majority of survey participants at 35.6 percent, while those with more than 2,000 represented only 13.9 percent of respondents. For 101 to 500 and 501 to 2,000, there was equal sampling at 25.1 and 25.4, respectively.

Hot topics It probably comes as no surprise that security and fraud prevention and optimizing operational costs were singled out as the most critical issues fac-ing banks’ ATM networks today. Significant focus was also placed on new functionality demands, customer experience and branch transformation.

“Optimizing costs are always a concern, and it is a fine balancing act be-tween operational efficiency and customer satisfaction that all banks strive to maintain. Fraud prevention and security are important too and have a direct impact on operational efficiency and customer satisfaction and trust,” said James Trocmé, senior vice president, ATM Channel Manager, Citibank, United States.

According to the survey, the biggest challenge FIs face for achieving ATM and self-service goals is, by far, customer acceptance of new or different technologies. Less significant, but still important, are maintaining security and the increasing use of mobile phones for banking transactions.

“ATMs have historically provided a very static user experience with a non-graphical interface and the same core set of peripheral devices supporting a very limited transaction set,” said Aravinda Korala, KAL CEO. “However, customers now expect, and banks are delivering, a much richer, and more dynamic experience with graphical, personalized user interfaces and new de-vices delivering a very wide set of transactions. We are seeing banks around the world providing amazing technology in response to customer demands.”

“Once customers learn how to use ATMs or CDMs, they feel the benefits of self-service, but the banks must offer new technologies according to the customer satisfaction indicators,” said Alejandro Mena, ‎vice president, ATMs and self-service, Banamex, Mexico.

Survey respondents identified better integration of the ATM with other banking, improved customer experience, and more automation in branches as the most im-mediate changes banks needed to make to their self-service networks in 2015/2016.

“ATMs have historically provided a very static user

experience with a non-graphical interface and the same core

set of peripheral devices supporting a very limited

transaction set,” said Aravinda Korala, KAL CEO. “However, customers now expect, and

banks are delivering, a much richer, and more dynamic

experience with graphical, personalized user interfaces and new devices delivering a very wide set of transactions. We are seeing banks around the world providing amazing

technology in response to customer demands.”


Increased Focus on ATM SecurityFraud prevention and security of ATM networks continue to be of the utmost concern because of the far-reaching implications. The effectiveness of an FI’s security measures affect customer trust and satisfaction as well as the costs associated with operations and ATM fleet management. The majority of sur-vey respondents maintained that ATMs are generally secure but more could be done to improve security.

“Because today’s malware attacks continue to grow in sophistication, security remains a priority at the ATM. Banks (and ATM fleet operators) are respond-ing, by deploying software-based solutions that provide access protection, intrusion protection and hard disc encryption. These measures bolster customer confidence and help to assure that ATM transactions are secured,” said Javier López Bartolomé, president, Wincor Nixdorf (Americas).

“It is essential that the ATM network is fully secure from every conceivable type of attack whether it is from inside the bank or an external attack,” said Michel Denis, KAL’s Chief Technology Officer. “Security is now receiving an intense amount of focus from both the deployers and the technology provid-ers to make sure that ATMs are impenetrable against any type of attack. This is critical in maintaining consumer confidence.”

In relation to ATM software, a hefty 41.7 percent of survey participants said they rely on their ATM hardware vendor to provide the expertise and technol-ogy needed to secure the ATM software, while 39.7 percent said they require vendors to adopt their FI’s security policies. Finally, 18.6 percent say they rely on their ATM software provider to secure their ATMs.

CHAPTER 1

“Because today’s malware attacks continue to grow in sophistication, security remains a priority at the ATM.”

—Javier López Bartolomé, president, Wincor Nixdorf (Americas)


Whether it’s software- or hardware-related, survey participants agreed that fraud prevention and security are immediate needs that require attention. To illustrate the point, within the next year, 37.2 percent said their banks intend to install anti-skimming devices, 32.7 will implement port lockdown (USB, keyboard and mouse) to prevent unauthorized access, and 29.5 percent will employ remote password management. A considerable 31.4 percent listed hard disk encryption as a high priority item on their to-do list for the next year, and anti-virus support came in at 28.8 percent.

Implementing EMV (Europay, MasterCard and Visa) as a card security stan-dard is another way to help prevent ATM fraud attacks, but the U.S. in par-ticular is becoming increasingly vulnerable because so many other countries have completed EMV migration. Most European, Latin American and Asian countries have migrated to EMV, or are in the process of migration. According to the ATM Marketplace white paper, “ATM Fraud Prevention,” the European ATM Security Team says that the U.S. is now the top destination for attacks such as magnetic-stripe card skimming.

“For many customers, the experience at the ATM will change with EMV. While they will likely learn quickly, there could be initial confusion. Because different ATM operators may handle the EMV experience differently, customers may be confused as they use ATMs outside their current bank’s ATM network,” a representative at a major U.S.-based bank told ATM Marketplace.

rebmuNegaPdraobpilC2014 ATM SOFTWARE TRENDS & ANALYSIS

21. Which area of security is most concerning to your bank?

22. Which statement best identifies your bank's confidence in the security of ATM and self-service software?

23.Which, if any, of the following security features will your bank seek to implement in the next year? (select all that apply)

47% 32% 11% 8% 3% Malware, viruses

Skimming card and PIN data

Unauthorized access via compromised

passwordsGaining physical

access inside the ATM

ATMs are generally secure but more should be done to secure the ATM channel.

We should do a great deal moreto secure the ATM channel.

ATMs today are very secure and do not require additional layers of protection.

We are much more concerned about physical security issues than software hacks.

ATM software is veryvulnerable to attack.

None of the above.

18% 22%

24% 25%

29% 30%

31% 33%

37%

None of the above

Firewall protection

Remote Key Loading (RKL)

Software Restriction Policy support (whitelisting)

Anti-virus support

Remote password management

Hard Disk Encryption

Lockdown of ports (USB, Keyboard, Mouse)

Anti-skimming devices

All of the above


The U.S. migration to EMV is a long and costly road, but it is a necessary measure in ongoing fraud prevention efforts.

Biometrics authentication, a form of identification and access control using metrics related to human characteristics, continues to be adopted by FIs in international markets. Western banks are poised to integrate biometric tech-nology, but the process continues to lag largely due to the implementation costs and managing consumer liability.

According to ABI Research, $3.1 billion in global revenues is forecasted for biometrics in 2015 in the consumer and enterprise sectors. Much of the expected growth will come from smartphone solutions, according to reports published by the research firm.

“Biometrics is becoming an urgent need due to the additional security it pro-vides, along with cardless ATM withdrawals. Also, just as smartphones are providing an alternate to cards at the point-of-sale, they are likely to do the same for ATMs,” said Rohan Muttiah, chief information officer, Commercial Bank of Ceylon, SriLanka.

As fraudsters continue to find new ways to get around current fraud preven-tion tools, banks will have to continue to stay ahead of their efforts.


The Customer ExperienceAccording to a 2014 Ernst and Young global consumer banking report, “Winning through Customer Experience,” a negative customer experience was the single most common driver for closed accounts. In the search for simplicity in day-to-day banking, customers ranked easy access to ATMs and bank branches high on the list of essential requirements.

“We need to ensure that we are meeting and exceeding customer experience expectations to keep them as customers. If customers have a great experi-ence at the ATM, they will think positively about the bank. Similarly, if they have a negative experience they will think negatively about the bank. Customer experience is often the differentiator between banks, so in order to keep and attract new customers, their experience at the ATM needs to be positive,” a representative at a major U.S.-based bank told ATM Marketplace.

Survey participants were asked what new functionality their banks intended to incorporate into self-service systems, and 66.1 percent said their banks

CHAPTER 2

3%

18%

28% 29% 32% 37% 40%

66%

Other

Incorporate sales capabilities to facilitate selling bank products via self-service

Increase marketing to promote the use of smartphones and/or the bank website

Offer banking products and services in off-premise locations via self-service

Use video conferencing to provide access to bank product experts

Use new types of devices to deliver bank products and services inside of the branch (such as statement printers, coin devices, recyclers)

Support remote assistance capabilities to enable bank personnel to assist custom-ers with new self-service functionality

Add new transactions on the ATM


planned to add new transactions on the ATM. Another 40 percent planned to include sales capabilities to facilitate selling bank products, and 37.2 per-cent aim to use new types of devices to deliver bank products and services inside the branch.

“Banks must customize the capabilities of the ATM to the daily needs of their clients to be able to offer extended transactions like payments of services, acquiring cinema tickets, or insurance, at any time during the day or night, to avoid long lines in the bank branch,” said Juan Pablo González Gasque, CEO, Stratus Technologies, Mexico.

However, when respondents were asked what new functionality is most important that banks should provide for self-service systems, 47.8 percent said cardless transaction support, and 45.8 percent said mobile phone in-tegration. The next highest ranked answer, at 33.7 percent, was automated customer identification, such as biometrics.

“More and more cardholders are used to doing their daily transactions on-line and with smartphones. This requires a new set of pre-staged applica-tion types and cardless transactions,” said Heiko Zissner, general manager, Financial IT Services, Itecon, Germany.

For mobile-ATM integration services, participants were asked to select all the services they thought banks would adopt. Fifty-five percent said banks will adopt mobile ATM withdrawals via near field communication (NFC), while 53 percent said mobile ATM withdrawals via one-time-use PINs. An-other 51.4 percent thought banks will adopt management of the ATM user interface via a mobile device.

3%

39%

51%

53%

55%

None of the above

Mobile ATM withdrawals via QR codes

Managing ATM user interface via a mobile device (menus, available transactions)

Mobile ATM withdrawals via one-time-use PINs

Mobile ATM withdrawals via NFC


“Customers are already mobile, so all the channels, including ATM, should also adapt accordingly. I believe that ATM will be integrated and driven by mobile apps,” said Bahadir Samli, chief information officer, ING Bank, Turkey.

For the U.S., at least, mobile integration may not be moving fast enough to meet the demands of customers. J.D. Power, a global market research company, released a retail banking report based on U.S. consumer survey results in April 2015 that said mobile banking satisfaction, which had in-creased each year since it was included in the study in 2012, has declined by three points in 2015.

“Satisfaction with mobile banking and ATMs is dropping as customer ex-pectations are outpacing technology improvements,” said Jim Miller, senior director of banking at J.D. Power. “Customers expect to be able to perform more functions on the same device this year than they did last year and that it will be easier to use. Success will not be driven by just adding more bells and whistles, but by balancing functionality with ease of use and then clearly communicating features and benefits to customers.”

A good multichannel/omnichannel strategy is imperative to the customer experience, according to the Ernst and Young report. It’s no secret that customers want convenience, and providing convenience means supplying the customer with several access options.

“Customers are already mobile, so all the channels, including ATM, should also adapt accordingly. I believe

that ATM will be integrated and driven by mobile apps.”

—Bahadir Samli, chief information officer, ING Bank, Turkey


7. Select the statement regarding omnichannel that most closely matches your bank's view (choose up to THREE options).

8. What are the most important considerations in achieving your bank's multichannel goals? (select all that apply)

7%

10%

11%

15%

19%

31%

33%

47%

The risk of failure of an omnichannel implementation is too great.

Implementation of a true multichannelarchitecture is too complex and costlyto be achievable.

Our omnichannel strategy has already been implemented and is a success.

We are in the process of implementing an omnichannel strategy.

Omnichannel should be thought of as more of a long term strategic goal rather than a project that can be delivered.

Our strategy is to look more at tactical integrations (such as mobile phones with ATMs) than a larger strategy involving all of our delivery channels.

The various life-cycles of the products within each channel make it extraordinarily difficult to manage as a single "omnichannel" entity.

Each delivery channel is unique and requires its own skill sets to manage and operate so handling all delivery channels as one

omnichannel is not achievable.

Select a single partner to provide all of the

technology we need for each channel as well as for

the overall integration

Select a software platform to use as a

foundation for the most critical components

17%

59% 36%

15% 3%

Choose the right partner for each

component of the overall strategy

None of the above Other


Survey respondents were asked to identify where they were in the banking omnichannel strategy process, and 18.7 percent said their omnichannel strategy has already been implemented and is a success, while 46.9 per-cent are in the process of implementing an omnichannel strategy. Interest-ingly, 33 percent thought that omnichannel should be more of a long-term strategic goal rather than a project that can be delivered.

When asked what the most important considerations were for achieving a successful omnichannel strategy, 59.3 percent responded that choosing the right partner for each component of the overall strategy was most impor-tant, while 35.9 percent said it’s important to select a software platform to use as a foundation for the most critical components.

“As the use of electronic channels grows, customers go to branches less often, so customers’ perceptions rely more and more on their experience at each channel,” said Pere Rafols Castellvi, director of information technol-ogy, CaixaBank, Spain.

According to López Bartolomé, Wincor Nixdorf (Americas), customers want speed and more options, but they also want personalized experiences.

“Banks should never forget about the never ending quest for speed and efficiency at the ATM. Tighter integration with mobile devices, and au-tomated cash and check solutions that handle deposits in real time and give customers earlier availability to their deposits are also priorities,” said López Bartolomé.

“Banks should never forget about the never-ending quest for speed

and efficiency at the ATM. Tighter integration

with mobile devices, and automated cash and check

solutions that handle deposits in real time and

give customers earlier availability to their deposits

are also priorities.” —Javier López Bartolomé, president, Wincor

Nixdorf (Americas)


Managing the operational costs associated with an ATM estate can be a daunting undertaking. From software and hardware upgrades to remote man-agement and monitoring services, to cash handling and management, the costs of an ATM estate can add up quickly. However, an effective ATM estate must be both operationally effective and accommodate consumer demands.

“When putting a lot of effort on operational cost reduction, the bank must be careful to avoid impact on availability. Reducing maintenance, cash provi-sioning, etc., can have a very fast negative influence on the availability of the machine, which will result in channel dissatisfaction, change of customer habits and thus going to other bank’s ATMs for their cash, having a direct impact on interbank/interchange fees,” said Rudy De Wolf, project manager for payments distribution, BNP Paribas, Belgium.

In the survey, respondents were asked about their banks’ views on remote management of ATM estates, and 40 percent said they currently do a good or very good job of remotely managing and monitoring the operational status of the ATM network. But, 31.3 percent said they have a general view of what is happening with their ATMs but need more detailed information.

In general, and obviously, banks want to better manage their estates, as the estates are growing increasingly complex due to new types of self-service, as well as the expansion the ATM estates. Subsequently, 33.3 percent of survey respondents reported their banks are investigating the use of new types of self-service systems within the branch, while 26.1 percent said they are increasing the size of their ATM estate both in branch and off-premise. Similarly, 23.3 percent said they are actively expanding the use of ATM and self-service machines inside their bank branches.

One key aspect of better managing the bank’s ATM estate is having de-tailed knowledge of the estate’s assets — type of machines, where they are installed, how they are configured, what versions of software are currently installed on them, etc.

Interestingly, 46.7 percent of FI survey participants maintain an inventory of their ATM assets using a manual process implemented by the bank, and

ATM Estate Management

CHAPTER 3


only 22 percent have an automated process to remotely maintain a real-time inventory of all assets.

“Historically banks have relied on people in the bank maintaining a spread-sheet of all of the assets. Asset management, which is very important data, in many cases falls into a great black hole, so it is done manually, if at all,” said Steve Hensley, executive vice-president, global sales, KAL.

A well-managed ATM estate includes overseeing activities for software distribution, monitoring and reporting, ticketing, marketing efforts, cash handling and asset management. However, many banks treat each of these activities as its own island, rather than integrating for complete, all-inclusive management.

“We provide a comprehensive management system called KTC. KTC in-cludes about 10 separate applications all integrated into a single system. It includes monitoring, ticketing, management reporting, marketing campaign management, asset management and other critical ATM management ap-plications,” Hensley said.

Additional cost considerations enter into the estate management equation as well, namely software, operating systems (OS) and security measures.

When asked about ATM software strategy, 34.2 percent of participants re-sponded that they currently use multivendor software, while 20.5 percent say they use software and hardware from a single manufacturer. Of the bank par-ticipants surveyed, 27.3 percent intend to replace their current ATM software in 2015, while another 24.2 percent plan to replace in 2016 or 2017.

Željko Medved, senior manager, Direct Channels Division, Erste & Steier-märkische Bank, Croatia, said the next step for his bank is implementing multi-vendor applications for ATMs as an essential infrastructure approach for rapid development of new services on ATMs. Easily linking to remote institutions and vendors is key for effective estate management, according to Medved.

“Managing costs is huge. Windows 7, EMV and added security measures are driving the one-time and operational costs higher. Utilizing multi-vendor software across a fleet helps keep ongoing operational costs lower,” a repre-sentative at a major U.S.-based bank told ATM Marketplace.

“Historically banks have relied on people in the bank maintaining a spreadsheet

of all of the assets. Asset management, which is very

important data, in many cases falls into a great

black hole, so it is done manually, if at all.”

—Steve Hensley, executive vice-president, global sales, KAL


With the saturation of alternative banking channels, such as mobile devices, online access and self-service options, the bank branch faces more competi-tion than ever before. More and more, banks are realizing the branch channel needs to be transformed to remain relevant.

Of the participants surveyed, 31.1 percent said they are currently rolling out new branch designs across their branch network, 29.7 percent said they are in pilot testing mode right now, 29.2 percent said they are in planning stages and 10 percent said they have no plans to introduce a branch trans-formation program.

Branch Transformation

CHAPTER 4

“All the banks are now seeing self-service as the most important channel, above online, mobile and IVR. Self-service is the main contact with the cus-tomers, and for this reason, banks are increasing features, investing in more devices and redesigning branches with bigger self-service lobbies,” said Alejandro Mena, vice-president of ATMs and self-service, Banamex, Mexico.

An executive from a major U.S.-based bank told ATM Marketplace that his bank has adopted the “Universal Banker” staffing model at many branches. This means that customers conduct all of their business with the same bank-er with no need for hand-offs or additional waiting for service. In conjunction with the staffing model change, the bank has also changed the branch layout. The traditional teller counter is replaced by concierge stations which allow more personable interaction between banker and customer.

31% 30%

Yes, we have pilots in test

29%

No, but we are planning to introduce

10%

Yes, we are rolling out new branch designs

across our branch network

No, and we have no plans to introduce


“Tellers roaming among self-service devices is quite popular in Germany compared to other countries. The use of non-cash devices for doing transfers, bill payment, recurring transfers, account balancing, etc., is very popular. Some transactions are not self-explanatory, so it’s uncommon that tellers are placed in the self-service area just to support customers. Which, by the way, is still much cheaper than having the tellers do the transac-tions,” Zissner, Itecon, Germany, said.

KAL CEO Aravinda Korala says branch transformation is a strategic make-over the banks should consider that focuses on providing expertise in an efficient but welcoming manner.

“It’s not just about continuing to provide human interaction, but more importantly, expertise. Whether it’s in the physical branch in the form of a concierge, a roaming teller with a tablet, or remote assistance via video conference, it’s the expertise, and the availability of the expert, that really counts,” Korala said.

Korala provided an anecdote he says he uses often to illustrate that branch transformation is more about delivering for various customer scenarios than determining the branch arrangement.

“Let’s say I want to transfer some money to my son who is on a trip in Peru, and I want to do this quickly because he is in need, but it’s not a transaction I typically perform. I go to my nearest bank branch for efficiency, walk in, and I’m immediately provided with expert assistance. Now whether that’s at the ATM via a video connection, or a help button that alerts a teller in the branch physically, matters less than the availability of the transaction and the expert assistance in completing it,” he said.

A major U.S.-based bank has also enhanced the customer experience at account opening, according to a representative. The branches have an in-stant card issuance terminal that produces a debit card at account opening. This allows the banker to demonstrate ATM capabilities for the customer, who then leaves the branch ready to transact. Additionally, branches have Wi-Fi which allows bankers to set up mobile banking applications on the customers’ mobile devices.

“Citi has been implementing a smart banking program for several years seeking to provide a more human touch in more open environments. There are number of ongoing initiatives supporting this strategy that involve busi-ness process improvements and technology to support them,” Trocmé, Citi, U.S., said.

“It’s not just about continuing to provide human interaction,

but more importantly, expertise. Whether it’s

in the physical branch in the form of a concierge, a

roaming teller with a tablet, or remote assistance via video

conference, it’s the expertise, and the availability of the

expert, that really counts.” —Aravinda Korala, CEO, KAL


There will continue to be a push to migrate transactions away from the teller line to self-service options. As financial institutions make more self-service options available, and customers become more and more comfort-able with the self-service experience, branch transformation will continue to gain momentum.

“Continuing to move routine transactions to self-service is critical to driving efficiencies and optimizing the total cost of ownership. Building off of that point, improving intelligence around the channel to start to use it in more opportunistic ways that also enhance customer relationships and further discovers/initiates sales opportunities,” said Devon Watson, vice-president of software research and strategy, Diebold Inc.

However, the argument for human interaction is still a strong one, and indus-try experts believe that human contact is far from disappearing anytime soon.

“Human interaction cannot be eliminated, because some types of trans-actions require human assistance. New technologies can help branch managers make their jobs easier, such as remote authorizations and teller assistance for high volume of transactions. Also, a human teller can provide first-line maintenance in order to maintain the availability index. The future of the branches will be a high interaction between the devices and the hu-man tellers,” Mena, Banamex, Mexico, said.

Exception transactions reinforce the need for the traditional teller role, ac-cording to the majority of the industry experts interviewed.

“It [the traditional teller role] will not disappear but will migrate to schemes of attention rooms. When a transaction requires cash dispensing, there will be available automatic cash dispensers, otherwise bank employees will go out to provide service to the clients on the floor of the branch,” Gasque, Stratus Technologies, Mexico said.

This introduces the role that video conferencing may play in the branch of the future. Video conferencing allows the customer to interact with experts about subjects and solutions that may not be locally present in the branch. Some examples are investment advice and business credit/lending oppor-tunities. A group of specialists centrally located in a “call center” could serve several branches, especially in more remote locations, to deliver full-service capabilities.

“Video conferencing is a great solution to reduce cost. Branches could have virtual tellers, virtual concierge, virtual customer service, virtual promot-ers. Branches could extend hours. A full branch could have just two tellers.


Mexican customers love face-to-face interaction, but if their problems could be solved in video conferencing, and they can make their transactions or get a new credit card, there won’t be any problem. And customer experi-ence will increase with this feature,” Mena said.

The argument against video conferencing is centered on security. Trocmé said Citibank customer focus groups worldwide have indicated that they don’t perceive video conferencing as secure or practical at the ATM, but they do see a role for it in a private room within the branch. Zissner said it would make sense for self-service to have a small closed area which does not allow other customers to hear and see what’s happening in the video conference.

“In my humble opinion, it’s more likely that customers will do the video call within their comfort zone — at home,” Zissner said.

It’s safe to conclude that self-service terminals will play a large role in the branch of the future. Devices will become more and more capable. This will further drive transactions away from the teller line, which will make changes to the branch staffing model, layout and focus possible.

“We think that by transforming the branch through adding automation, streamlining processes, optimizing staff and branch footprint, banks can expect anywhere from a 10-20 percent improvement in the efficiency ratio of their branches. This includes top line revenue growth and reduced cost base. It may take an individual branch at least three years to achieve those operating levels,” said Raja Bose, vice president of branch transformation and advisory service, Diebold Inc.


As branch transformation has moved from a “branch of the future” concept to an implementation reality, the role of the ATM will keep evolving. Banks will need to examine their physical and digital services and determine which offerings best suit their specific markets.

“We anticipate more convergence between the ATM and digital channels. In fact, we see the ATM as a hybrid channel that naturally bridges the physical and digital dimensions of retail banking service delivery to our customers worldwide. Even as digital banking rapidly is gaining acceptance and mo-mentum, people still want to use cash. We think the ATM is ideally suited to reconcile both,” Trocmé, Citi U.S., said.

Diebold’s Bose says banks need to reduce their cost and physical footprint, but can’t afford to “leave the neighborhood.” Therefore, banks seek smaller branches with more automation.

“You have to begin to look at ATMs as an extension of a bank’s branch net-work and an important touch point with consumers. ATMs can help extend a bank’s reach, and software (on an ATM or assisted self-service terminal) can be a catalyst to enable more transaction types and migrating routine transac-tions away from the tellers,” Bose said.

With reducing costs within the bank branch as a major driver for increasing self-service options and availability, survey participants believe ATMs will continue to play a critical role in increasing efficiency for both branch employ-ees and customers alike.

“Mexico is a country with a self-service culture in development. Mexican customers are now using the new technology and moving to self-service. Mexican banks are moving to increase the footprint of ATMs and CDMs because the banks need to offload low-value transactions to self-service. The sales strategy must be completely aligned with self-service,” Mena said.

Lorenzo Tassan-Bassut, chief operating officer of TMB Bank, Thailand, does not see a major role change for the ATM at the branch, per se, but as a chan-nel that reduces cost per transaction by adding the capability to handle new

The Future of the ATM

CHAPTER 5

“You have to begin to look at ATMs as an extension of

a bank’s branch network and an important touch point with consumers.

ATMs can help extend a banks reach, and software can be a catalyst to enable

more transaction types and migrating routine

transactions away from the tellers.”

—Raja Bose vice-president of branch transformation and advisory service,

Diebold Inc.


transactions, such as account opening and card issue. Zala Zsolt, senior manager, OTP Bank, Hungary, agrees.

“It helps the cashiers to focus on sales activity and to provide advice to cus-tomers instead of managing traditional cash in/cash out and transfer transac-tions,” Zsolt said.

Dr. Koson Sapprasert, head of innovation, Siam Commercial Bank, Thailand, said that self-service and ATM is becoming the most prominent channel in Thailand. In terms of the ATM’s future role in Thailand, at least, he believes it will remain the most important channel for cash transactions.

Wincor Nixdorf’s López Bartolomé said that the future role of the ATM in the bank delivery strategy will not be one of singularity or isolation, but rather, one of extending the brand and customer experience through ease of use and increased functionality.

“It is no longer just a ‘cash-and-dash’ functionality. The ATM is continuing to become an evolving and vital aspect of the increasing self-service offering of every bank. As mobile functionality continues to mature, banks also need to provide seamless integration and transition from the new wallet of the consumer, their mobile device, to their self-service device, the ATM,” López Bartolomé said.

The pace of change in the ATM industry has accelerated dramatically in the past year, with new models of ATMs, new configurations, more automation in the bank lobby, new features, increased focus on the customer experience and more. Having the right partners with the best technology seems to be more important than ever before, as is rapidly innovating in order to compete in the marketplace.

With rapid change comes higher risk — the risk of choosing poorly, the risk of betting on consumer acceptance of new ways of banking, fraud risks and so on. Missteps, carelessness and inattention to detail can be very costly. This annual guide aims to reduce many of these risks by providing the most up-to-date information and expert industry analysis.

It is also important to examine the past for perspective on where the industry is today. In the pages that follow, ATM Marketplace takes a brief look back at the previous seven editions of this guide, and offers excerpts that illustrate just how far the industry has come in just eight years.


The majority of industry experts agree that there was a long history of little to no innovation in the ATM and self-service space. More so than ever before, the banking industry is now a tremendously competitive mar-ket, and the adoption of new technologies and new ways of thinking about reducing costs, while also providing more innovative customer ser-vices, are critical for success.

Looking at the entire series of ATM software trends guides — including this one — it becomes clear not only that the pace of change has picked up con-siderably, but also that it’s accelerating at faster rate than ever.

This is especially apparent today, with topics such as omnichannel banking and branch transformation dominating almost every discussion about the future of retail banking.

Here is a look back at some of the findings and conclusions from prior guides.

2007/2008“In established ATM markets, OS/2, states and screens, and a proprietary, locked-in ATM system continue to rein.”

“Banks are ready to start implementing new things like remote-key distribu-tion, remote ATM management and remote-software distribution.”

According to Retail Banking Research Ltd., 15 percent of the world’s ATMs had moved to multivendor software at the end of 2007, with Europe and Asia leading the way.

“ATM life in an XFS environment is a new concept.”

“People can talk all they want about how much Windows improves user ex-perience, but at the end of the day, it’s about cost savings.”

Driving software forces established in ATM markets include:• Deposit automation/check 21 in the U.S. • Personalization, especially in the U.S.

Reflections on Past Guides

LOOKING BACK


• Channel integration, so that the user experience is similar or the same.

2009 “Multivendor ATM software represents value in tough times.”

“The No. 1 reason FIs look for an ATM software change is cost reduction.”

“Not surprisingly, increased ATM security tops the list” of reasons to change ATM software.

Remote ATM monitoring tops the list as the most desired feature for ATM software.

Reducing operational costs is the most critical change on the minds of the online survey respondents.

2010 Primary reason to change ATM software: “Increased security once again tops the list of reasons for FIs to change their ATM software.”

“Remote monitoring tops the list as the most desired feature for ATM software.”

“Although the economic pressures on FIs have not subsided, the focus has shifted somewhat to customer-facing enhancements.”

“While the largest number of respondents viewed the ATM as the second-most important customer touchpoint, it ranked a close second overall after the branch as the most important. The mobile phone space was solidly ranked as the least important. The branch is still clearly the top touchpoint, despite advances in customer facing technologies.”

2011“Increased pressure to be competitive with new services and features helped drive the ability for deployers to easily make changes to their ATM software to the top of the list of features deployers want to see, with 46 percent of respondents choosing that category.”

Regarding identifying the most critical changes banks wanted to make to their ATM network, “Reducing operational costs topped the list”

“The branch remains the most important customer touchpoint for financial in-stitutions, although the number of survey respondents who chose the branch as the most important customer touchpoint decreased slightly, to 37 percent in 2011 compared with 40 percent in 2010. The number of respondents


tapping the ATM as the most important customer touchpoint remained fairly stable at 34 percent compared with 33 percent in change to 2010 ... with only five percent of respondents listing mobile/smartphone banking as their most important touchpoint, up only slightly from 4 percent in 2010.”

2012“Multivendor ATM software is becoming ubiquitous.”

“As FIs increasingly serve customers via a variety of channels, creating a consistent experience between those channels has become more important. And as the economic and regulatory environment remains uncertain, manag-ing costs has become a primary concern.”

“Tablet computing to inspire the next generation of interfaces.”

“One of the main features our experts predicted will be offered on the ATM in the next few years is video banking.”

“A variety of banking services are coming to the mobile phone, if they’re not here already.”

“Banks are incorporating mobile phones in other ways as well including al-lowing the customer to use contactless cards or NFC-enabled mobile phones to initiate their withdrawals in order to speed up the transaction.”

2013Asked, “What is the most critical change your organization needs to make to its ATM network in 2013?”, survey participants chose as one of their top responses, “Create a better customer experience at the ATM.”

Targeted marketing and transaction personalization was a main focus. “Not only does the ability to tailor the ATM transaction to individual customers make for a more personal experience, it offers the bank the ability to deliver targeted messages to that customer.”

“Integration with mobile phone transactions was by far seen as the most important future capability of the ATM channel, despite being ranked near the bottom in earlier surveys.”

“Improving the customer experience is becoming more and more important.”

“Consumers expect to interact with all types of technology in the same way they interact with their smartphones.”


“Cutting operational costs is by far the most critical change ATM deployers are looking to make to their ATM networks this year.”

“Support for new technology, particularly mobile phone integration, topped the list of drivers for changing ATM software.”

“Delivering new products via self-service technology is a priority for more than three fourths of survey respondents.”

“More than half of survey respondents are thinking about the changing bank branch when testing new self-service technology.”

2014 “A key theme identified by survey respondents is the need for FIs to add greater functionality to their ATMs.”

“Nearly three-quarters (70.6 percent) of respondents planning to extend their self-service usage aim to add new transaction types at their ATMs.”

“Targeted one-to-one marketing was identified as an important new function-ality by 27.5 percent of FI respondents in 2014.”

“While 17.9 percent of FIs surveyed in 2014 identify remote teller assis-tance as an important functionality they want to introduce at their ATMs, only 7.3 percent see videoconferencing with bank subject matter experts as an important new functionality. The 2013 survey also identified a low demand for videoconferencing, with only 15.6 percent of FI respondents identifying videoconferencing as an important new functionality.”

“Integration of the ATM with mobile phone transactions was identified by 48.7 percent of 2014 non-bank respondents as the most important future ATM capability that would improve the customer’s experience. Contactless card support came second, identified by 26.7 percent of respondents.”

“With the ongoing drive to self-service banking, ATMs will assume more of the functions traditionally handled by tellers in branches.”

“Increasing customer reach and coverage and adding new functionality to improve the customer experience are the dominant reasons for deploying new ATMs.”


Financial institutions

APPENDIX 1Analysis of financial institution survey results

1. Please identify your industry segment.

2. Regional breakdown of financial institution respondents (percent)

Financial institution Other


29%Asia24%

Australia4%



Africa9%


3. How many ATMs do you have?

5. Does your bank have a branch transformation program in place now?

6. Does your bank currently have an omnichannel/multichannel strategy?

4. How many bank branches do you have?

17%

29% 34%

20%

1-100 101-500 501-2,000 More than 2,000





36%

1-100

25%

101-500

25%

501-2,000

14%

More than 2,000

31% 30%


29%


10%



Yes, we are in the process of implementing our strategy

48%

Yes, we have a well-defined strategy but not yet implementing

No, but we are now formulating our strategy

No, and we have noplans to pursue

17% 24%

11%






36%

1-100

25%

101-500

25%

501-2,000

14%

More than 2,000

31% 30%


29%


10%




48%




17% 24%

11%






36%

1-100

25%

101-500

25%

501-2,000

14%

More than 2,000

31% 30%


29%


10%




48%




17% 24%

11%



7. Select the statement regarding omnichannel that most closely matches your bank’s view (choose up to THREE options).

8. What are the most important considerations in achieving your bank’s multichannel goals? (select all that apply)




7%

10%

11%

15%

19%

31%

33%

47%















17%

59% 36%

15% 3%







7%

10%

11%

15%

19%

31%

33%

47%















17%

59% 36%

15% 3%





9. What is the bank’s deployment strategy for self-service systems (such as ATMs, kiosks) for 2015/2016?

10. What new functionality does your bank plan to incorporate into its self-service system? (select up to THREE options)

23%

26%

33%

13%

5%

We are investigating the use of new types of self-service systems within the branch

We are increasing the size of our estate both in branch and off-premise

We are actively expanding the use of self-service inside our branches

We are keeping the total number of self-service systems steady for the near future

We are decreasing the numberof self-service systems for off-premise use

2015/2016

3%

18%

28% 29% 32% 37% 40%

66%

Other

Incorporate sales capabilities to facilitate selling bank products via self-service

Increase marketing to promote the use of smartphones and/or the bank website

Offer banking products and services in off-premise locations via self-service

Use video conferencing to provide access to bank product experts

Use new types of devices to deliver bank products and services inside of the branch (such as statement printers, coin devices, recyclers)

Support remote assistance capabilities to enable bank personnel to assist custom-ers with new self-service functionality

Add new transactions on the ATM


11. Which of the following mobile-ATM integration services does your bank plan to offer in near future? (select all that apply)

12. What is the biggest challenge in achieving your bank’s goals for ATMs and self-service in the near future?

13. Which statement best identifies your bank’s software strategy for self-service?

Mobile ATM withdrawals via NF C

Managing ATM user interface via a mobile

device (menus, available transactions)


None of the above


We have one standardized software environment for all types of self-service systems from multiple manufacturers

(multivendor software)

We use the software supplied by the manufacturer (i.e., NCR

software on NCR systems, Diebold software on Diebold

systems, etc.) and see no need to change

We have software supplied by the manufacturer(s)

but are considering multivendor software

Our software and hardware is from a single manufacturer

34% 23% 22% 21%

32% 15% 14% 13% 9% 9% 8%

Customer acceptance of new/different technologies

Impact of mobile technology will minimize the need for expanding self-service systems

Remote management of self-service technologies for maximum uptime

Demand for cash (either increased or decreased)

Maintaining security

Other

Government regulations


14. Which statement best identifies your bank’s approach to ATM software development?

15. Are there plans to replace your bank’s current ATM software?

We rely on our ATM hardware vendor to develop and maintain our ATM software

We rely on our ATM software vendor to develop and maintain our ATM software

We license ATM software from a vendor but we make ongoing

changes to it

We develop and maintain our own proprietary ATM application

I am not sure what we do

30%

28% 19%

16%

7%

27% Yes, planned and budgeted

for 2015

Yes, planning for either 2016

or 2017

24% No, there are no plans to replace

the existing software

22% No, we recently

replaced it

20% Not applicable6%


16. What are your primary drivers for changing your bank’s ATM software? (select up to THREE options)

17. What is the most important new functionality for your bank’s self-service systems? (select up to THREE options)


16. What are your primary drivers for changing your bank's ATM software? (select up to THREE options)

17. What is the most important new functionality for your bank's self-service systems? (select up to THREE options)

Improve the customer experience

Reduce costs

37%

34%

29%

27%

26%

Better integration of the ATM with other banking channels and internal systems (such as CRM)

Introduce new functionality (such as deposit automation)

21% Reduce development,

testing or deployment time

15% Gain new software development capabilities (take over development)

20% Increase security

26% Support new technology

(such as Windows 7)

24% Does not apply (we are

not planning to change)14% Improve marketing capability

12% Meet regulatory compliance

Better remote management, improve ATM availability

38%

33%

24% 22% 21% 21% 20%

19% 18% 18% 17%

13% 11% 10%

9% 8%

6% 3%

Mobile phone integration, pre-stage transactions on mobile device

Cardless transaction support

Targeted marketing

Electronic receipts for ATM transaction

Security technologies such as malware and anti-virus protection

Automated customer identification (such as the use of biometric/KYC technologies)

Touchscreen/multi-touch screen capability

Automate approval process for handling of withdrawals exceeding daily limit

Customize the user interface based on transaction history

Favorite transactions for customers

Remote teller assistance

Display of nearest available ATM when out of service

Person-to-person payments

Purchase items (such as prepaid cards, tickets, stamps)

Video conferencing with bank Subject Matter Experts

Coin handling support (such as commercial coin deposits)

Card escrow - allow subsequent customer retrieval of captured card

Support for high quality multimedia


16. What are your primary drivers for changing your bank's ATM software? (select up to THREE options)

17. What is the most important new functionality for your bank's self-service systems? (select up to THREE options)


Reduce costs

37%

34%

29%

27%

26%



21% Reduce development,

testing or deployment time

15% Gain new software development capabilities (take over development)

20% Increase security

26% Support new technology

(such as Windows 7)

24% Does not apply (we are

not planning to change)14% Improve marketing capability

12% Meet regulatory compliance


38%

33%

24% 22% 21% 21% 20%

19% 18% 18% 17%

13% 11% 10%

9% 8%

6% 3%

Mobile phone integration, pre-stage transactions on mobile device


Targeted marketing





Automate approval process for handling of withdrawals exceeding daily limit




Display of nearest available ATM when out of service



Video conferencing with bank Subject Matter Experts





18. What are the most critical changes your bank needs to make to its self-service network in 2015/2016? (select up to THREE options)

19. Which statement best identifies your bank’s strategy regarding ATM migration to Windows 7? (select up to THREE options)

20. Which statement best identifies your bank’s approach to the security of ATM and self-service software?


37%

37%

17%

11%

15%

34%

30%

27%

24%

24%

12%

Better integration of the ATM with otherbanking channels

Better distribution of software updates and changes

Improve management reporting (availability, transaction volumes, SLAs)

Compliance with PCI/disabled user accessibility regulations

Automate more branch transactionsand move them to the ATM channel


Adopt enhanced security technologies

Migrate to Windows 7 or 8

Increase ATM availability/uptime

Reduce operational costs

Remotely manage the ATM network

10%Marketing the bank’s products and services

10%Reduce hardware purchasing costs

8%Decrease overall ATM transaction time

7%Upgrade communications infrastructure

3%No changes needed


19. Which statement best identifies your bank's strategy regard-ing ATM migration to Windows 7? (select up to THREE options)

20. Which statement best identifies your bank's approach to the security of ATM and self-service software?

3%

3%

5%

6%

8%

14%

24%

30%

45% We have already migrated to Windows 7 (or in the process)

We will migrate to Windows 7 in 2015

We will migrate to Windows 7 in 2016/2017

We will stay on Windows XP for the foreseeable future

We will wait on Windows 10to upgrade from Windows XP

We would prefer the option to move directly to Windows 8

We will implement a non-Microsoft operating system

We rely on our ATM hardware vendor(s) to provide the expertise and technology needed to secure the ATM software.

We have our own security policies that we require our vendor(s) to adopt.

We rely on our ATM software provider to secure our ATMs.

We would like to have the choice of running a non-Microsoft operating system (such as Linux)

Other

42% 40%

19%


37%

37%

17%

11%

15%

34%

30%

27%

24%

24%

12%
















3%No changes needed




3%

3%

5%

6%

8%

14%

24%

30%












Other

42% 40%

19%


37%

37%

17%

11%

15%

34%

30%

27%

24%

24%

12%
















3%No changes needed




3%

3%

5%

6%

8%

14%

24%

30%












Other

42% 40%

19%



22. Which statement best identifies your bank’s confidence in the security of ATM and self-service software?

23. Which, if any, of the following security features will your bank seek to implement in the next year? (select all that apply)















None of the above.

18% 22%

24% 25%

29% 30%

31% 33%

37%

None of the above

Firewall protection



Anti-virus support





All of the above















None of the above.

18% 22%

24% 25%

29% 30%

31% 33%

37%

None of the above

Firewall protection



Anti-virus support





All of the above















None of the above.

18% 22%

24% 25%

29% 30%

31% 33%

37%

None of the above

Firewall protection



Anti-virus support





All of the above


24. Which statement best identifies your bank’s approach to using the self-service channel for marketing purposes?

25. Which statement best identifies your organization’s marketing strategy regarding ATMs?


24.Which statement best identifies your bank's approach to using the self-service channel for marketing purposes?

25.Which statement best identifies your organization's marketing strategy regarding ATMs?

30%We use the ATM channel for marketing campaigns that promote bank products and services but we do not solicit cardholder responses.

ATMs can and should be used as a sales tool like the other bank delivery channels.

Using ATMs for marketing is becoming important but it is too limited for sales purposes.

ATMs can be used to promote the bank’s brand but not specific products or services.

There is little or no value in marketing at the ATM.

No opinion

17%Marketing at the ATM is a future desire, but we do not use the ATM for marketing activities today.

13%ATMs are primarily ‘cash and dash’ so there is little or no value in marketing at the ATM.

12%We make targeted offers to ATM cardholders and solicit responses to marketing offers.

12%We use the ATMs to promote the bank’s brand but not to promote specific bank products or services.

10%We have an enterprise marketing engine that is used with targeted offers across all delivery channels including the ATMs.

5%None of the above/don't know

19%

17%

8%

6%

50%


24.Which statement best identifies your bank's approach to using the self-service channel for marketing purposes?

25.Which statement best identifies your organization's marketing strategy regarding ATMs?

30%We use the ATM channel for marketing campaigns that promote bank products and services but we do not solicit cardholder responses.

ATMs can and should be used as a sales tool like the other bank delivery channels.

Using ATMs for marketing is becoming important but it is too limited for sales purposes.

ATMs can be used to promote the bank’s brand but not specific products or services.

There is little or no value in marketing at the ATM.

No opinion

17%Marketing at the ATM is a future desire, but we do not use the ATM for marketing activities today.

13%ATMs are primarily ‘cash and dash’ so there is little or no value in marketing at the ATM.

12%We make targeted offers to ATM cardholders and solicit responses to marketing offers.

12%We use the ATMs to promote the bank’s brand but not to promote specific bank products or services.

10%We have an enterprise marketing engine that is used with targeted offers across all delivery channels including the ATMs.

5%None of the above/don't know

19%

17%

8%

6%

50%


26. Which statement best reflects your bank’s view on remote management of your ATM estate?

28. Which statement best identifies how ATM software updates are managed?

27. Regarding the tools used to remotely monitor your bank’s ATM network, which statement is most accurate?


26. Which statement best reflects your bank's view on remote management of your ATM estate?


27.Regarding the tools used to remotely monitor your bank's ATM network, which statement is most accurate?

40%

We currently do a good or very good job of remotely managing and monitoring the operational status of our ATM network

31%We have a general view of what is happening on our ATMs but we need more detailed information

12%Our visibility of the real-time operational status of the ATM network is very limited

12%We rely on third parties to monitor and report on the operational status of the network

5%

No idea/none of the above

We monitor our network using tools we have licensed

from a 3rd party vendor

Our ATM network is remotely monitored by our ATM processor or our ATM hardware supplier(s)

using their own tools

We monitor our network using tools or applications

that we developed


53% 28% 12% 7%

51%

18%

17%

7% 7%

Our bank is responsible for remotely distributing all software updates using software distribution tools

ATM application updates are managed by our ATM processor and ATM vendor specific updates are managed by our ATM hardware vendor(s)

ATM software updates/changes are installed at the ATM (not remotely) by our ATM maintenance company

Our ATM software is very rarely changed or updated






40%





5%







that we developed


53% 28% 12% 7%

51%

18%

17%

7% 7%










40%





5%







that we developed


53% 28% 12% 7%

51%

18%

17%

7% 7%







29. Regarding maintaining an inventory of the assets in your ATM estate (including software versions, ATM models and hardware configurations), which statement is most accurate?

Inventory management information is kept

up to date using a manual process by the bank

We have an automated process to remotely maintain a real-time

inventory of all assets

We rely on our hardware vendor(s) to supply us with

inventory details

No idea/none of the above We do not have an up-to-date, detailed

inventory of our ATM estate

47% 22% 13% 8% 11%


APPENDIX 2Analysis of survey results from: Non-bank deployers, ATM manufacturers, ATM maintenance and service companies, ATM hardware and software providers, processors

30. In what global region are you based?

31. What new functionality do you believe is important in the near future for bank self-service systems? (select up to THREE options)


27%Asia28%

Australia4%



Africa6%


32. Which of the following mobile-ATM integration services do you think banks will adopt? (select all that apply)

33. What do you believe is the biggest challenge facing banks in achieving their goals for ATMs and self-service in the near future?

3%

39%

51%

53%

55%

None of the above






32. Which of the following mobile-ATM integration services do you think banks will adopt? (select all that apply)

33. What do you believe is the biggest challenge facing banks in achieving their goals for ATMs and self-service in the near future?

3%

39%

51%

53%

55%

None of the above





Maintaining security33%Customer acceptance of new/different technologies22%

Impact of mobile technology will minimize the need for expanding self-service systems

19%

Remote management of self-service technologies for maximum uptime

8%

Demand for cash (either increased or decreased)8%

Government regulations6%

Other (please specify)4%

CHALLENGE


34. What do you think are the primary drivers for banks for changing their ATM software? (select up to THREE options)

35. What do you think is the most important new functionality that banks should provide through their self-service systems? (select up to THREE options)



Reduce costs

Increase security




Support new technology (such as Windows 7)

Gain new software development capabilities (take over development)

Reduce development, testing or deployment time

Improve marketing capability

49%

46%

34%

33%

27%

24%

19%

16%

15%

12%

23%

Meet regulatory compliance




Mobile phone integration, pre-stagetransactions on mobile device





Display of nearest available ATM when out-of-service



Automate approval process of handlingof withdrawals exceeding daily limit

Targeted marketing

Video conferencing with bankSubject Matter Experts







Other 2%

2%

2%

7%

8%

9%

10%

11%

12%

12%

13%

14%

16%

17%

17%

20%

34%

46%

48%



Reduce costs

Increase security




Support new technology (such as Windows 7)

Gain new software development capabilities (take over development)

Reduce development, testing or deployment time

Improve marketing capability

49%

46%

34%

33%

27%

24%

19%

16%

15%

12%

23%

Meet regulatory compliance




Mobile phone integration, pre-stagetransactions on mobile device





Display of nearest available ATM when out-of-service



Automate approval process of handlingof withdrawals exceeding daily limit

Targeted marketing

Video conferencing with bankSubject Matter Experts







Other 2%

2%

2%

7%

8%

9%

10%

11%

12%

12%

13%

14%

16%

17%

17%

20%

34%

46%

48%


36. Which area of bank ATM/self-service security is most concerning to you?

37. Which statement best identifies your confidence in the security of bank ATMs?

38. Which statement reflects your view of banks using the self-service channel for marketing purposes?

45%

All of the above Skimming card and PIN data Malware, Viruses Unauthorized access via

compromised passwords Gaining physical access

inside the ATM

32% 10% 8% 5%






45%



inside the ATM

32% 10% 8% 5%

56% 18%

11%

11%

Banks should do a great deal more to secure the ATM channel.

Banks should be much more concerned about physical security issues than software hacks.

Bank ATM software is very vulnerable to attack.

3%


None of the above.

ATMs are primarily ‘cash and dash’ so there is little or no value in marketing at the ATM.

My bank uses the ATM channel for marketing campaigns that promote bank products and services but they do not solicit cardholder responses

My bank uses the ATMs to promote the bank's brand but not to promote specific bank products or services

My bank does not use the ATM for marketing activities today

My bank has an enterprise marketing engine that is used with targeted offers across all delivery channels including the ATMs

My bank makes targeted offers to ATM cardholders and solicit responses to marketing offers

1%

26%

25% 19%

16%

10% 5%






45%



inside the ATM

32% 10% 8% 5%

56% 18%

11%

11%

Banks should do a great deal more to secure the ATM channel.

Banks should be much more concerned about physical security issues than software hacks.

Bank ATM software is very vulnerable to attack.

3%


None of the above.

ATMs are primarily ‘cash and dash’ so there is little or no value in marketing at the ATM.

My bank uses the ATM channel for marketing campaigns that promote bank products and services but they do not solicit cardholder responses

My bank uses the ATMs to promote the bank's brand but not to promote specific bank products or services

My bank does not use the ATM for marketing activities today

My bank has an enterprise marketing engine that is used with targeted offers across all delivery channels including the ATMs

My bank makes targeted offers to ATM cardholders and solicit responses to marketing offers

1%

26%

25% 19%

16%

10% 5%


CONTRIBUTING ORGANIZATIONSABI Research

ATM Marketplace

Banamex (Mexico)

BNP Paribas (Belgium)

CaixaBank (Spain)

Citibank (United States)

Commercial Bank of Ceylon (SriLanka)

Diebold (United States)

Ernst & Young

Erste & Steiermärkische Bank (Croatia)

ING Bank (Turkey)

Itecon (Germany)

J.D. Power

KAL ATM Software (sponsor)

OTP Bank (Hungary)

Siam Commercial Bank (Thailand)

Stratus Technologies (Mexico)

TMB Bank, Thailand

Wincor Nixdorf (Germany)


An independent company, KAL is recognized as the world’s leading ATM software company, providing solutions to some of the world’s megabanks, such as Citi, China Construction Bank and UniCredit. KAL’s software is installed and supported around the world in more than 80 countries, enabling banks of all sizes to reduce costs and improve competitiveness.

ATM Marketplace, owned and operated by Louisville, Ky.-based Networld Media Group, is the world’s larg-est online provider of information about and for the ATM industry. The content, which is updated every business day and read by business and industry pro-fessionals throughout the world, is free.

ABOUT THE SPONSORS

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