ATMIA Madrid 2018

The Future of the ATM and Branch in the digital economy?

Are they relevant?

Neill Harris – Global Product Marketing Director

NCR Financial Services

Changing consumer behavior and technology is impacting our markets and customers

cars

connected

by 2020

wearable

devices by

2020

mobile

connected

devices by 2020

smart-

home

industry by

2020

11.6B173.4M79B90%

Election of Pope Benedict XVI

April 2005

Election of Pope Francis

March 2013

Technology has become part of the experience

Mobile is all pervasive

Are you where your customers are?

Utah Valley University

We now live in an

application economy

Use of Apple Pay, Google Pay and

Samsung Pay increased five points

to 34% in Q1/18

Only 6% of users were very active

42% of mobile payment users

would not recommend the service (up from

31% last year)

Who is more likely to call their bank contact center? a) The plugged-in millennial in

Brooklyn, Bangkok, Sydney, London

b) The retiree fresh off the tennis court at The Villages in Florida?

Source: Bain & Company The Bank Branch and Call Center Traffic Jam 2016

1. Bank more than other groups

2. Are Omni-channel consumers

3. Use ATMs more than any other group

USA - Average number of monthly banking interactions by channel

0.3 Phone

0.2 Phone

0.5 Phone

Channel convergence - Digital and physical

Note: Mobile includes apps and browsing on smartphones and tablets, online refers to desktop and laptops

The Question is…Are you where your customers are? • As payments evolve and experiences move into a blended digital & physical

• More interactions go digital, how do you continue to engage?

The consumer journey is dynamic & changing Connecting the ABCD dots to create a frictionless, digital

experience Virtual

Physical

Digital

ATM

Call Center

Branch

ATMIA NextGen ATM Blueprint – Architecting the future today

“The ATM network has grown increasingly complex. and it’s our job to create meaningful change that makes ATM

technology easier to own and operate, and more supportive of the digital-first consumer.” SVP Frank Gauld NCR

• Keeping the ATM and Branch relevant • Meeting the expectations of a digital first consumer• Lowering the cost to serve through Simplification,

Standardization and Rationalization• NCR is working in Partnership with ATMIA to connect the dots

ATMIA NextGen ATM Blueprint – Architecting the future today

An App Model that allows Financial Institutions ’s to differentiate the Consumer Experience.

Rapid design and development of Apps bringing innovation in ATM Transactions and Services.

Embrace Cloud First Technologies – Enterprise Enabled, HTML5, JavaScript and App Services.

Migrating change to the Cloud to reducing the complexity and operational costs of the ATM.

Simplified and standardized practices and procedures.

Improve Profitability and reduce operating and maintenance costs.

Enabling Financial Institutions to provide consistent digital first experiences.

Allowing consumers to connect with Financial Institutions when and where they want to bank.

DIGITAL FIRST EXPERIENCES

FLEXIBLECONNECTED DEPLOYABLE

ATMIA NextGen ATM Blueprint – Architecting the future today

Embrace Cloud First Technologies – Enterprise Enabled, HTML5, JavaScript and App Services.

Rapid design and development of Apps bringing innovation in ATM Transactions and Services

Simplified and standardized practices and procedures

Enabling Financial Institutions to provide consistent digital first experiences

NCRACTIVATE

ENTERPRISE

36,025 35,193 35,719 35,961

181,282 168,428 157,503 153,120

29,726 28,087 25,918 23,416

117,281 113,951 128,169 140,228

3,015 4,228 6,076 7,728

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020

Cash Dispense ISO Cash Dispense Fin Multi-Function

Cash Recycling Branch Assisted Services

ATM Cash Recycling CAGR +6.1%

ATM Multi-function (excl: recycling)

ATM Assisted Service CAGR +37%

CD Financial

CD ISO59%

41%

Globally the ATM market is embracing more advanced functionality

ATM shipment forecasts 2017 - 2020

52%

48%

Financial product

acquisition

Everyday banking is digital but product acquisition remains dominated by the

branch

64.2%

72.2%

68.2%

57.0%

51.8%

6.1%

4.0%

10.5%

15.6%

14.4%

17.1%

13.7%

11.1%

16.6%

11.7%

7.0%

5.2%

3.2%

6.4%

8.3%

7.5%

5.3%

6.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Current acc

Savings acc

Mortgage

Loan

Credit card

Channel of acqusition across Asia, 2018

Branch/in person Telphone Online Mobile Other

Source: GlobalData Banking & Payments surveys

Evolution of the branch digital zone

21

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

BU

SIN

ES

S V

AL

UE

CONSUMER VALUE

Teller

CD Single-Function - Cash Dispense Reduce teller cash withdrawals, consumer

convenience

Recycle

Add’l SSMulti-Function – Recycle & Add’l Tx Recycling – Cash replenishment Additional Self-service Tx – Teller migration, lower

on-us cost, consumer convenience

Local Assist

Remote AssistMulti-Service - Self or Assisted Local assist – Monitor, assist, engage Remote assist – Consumer convenience, lower cost,

innovative purpose-built branch formats When business rules require or consumer requests

Envelope

Dep Auto

Deposit – Teller migration, consumer convenience

Meeting changing needs The Branch of the Future

NCR SmartBranch - ATM as A Branch

Any location• Full Account Services• Merchant Services • Counter Services

SmartBranch - ATM As a Branch

• Highly configurable and adaptable form factors• Anywhere deployments (Off and On premise)• Offer more services and transactions

Top 10 Retail Banking Trends and Predictions for 2018

Source: The Financial Brand and Owner/Publisher of the Digital Banking Report

Over 100 Global FS leaders - Enhance the digital experience and create a frictionless consumer journey

Our strategy is aligned with your strategic priorities

2525

CREATE CONNECTED EXPERIENCES

BUILD A SCALABLE, OPEN

PLATFORM

LEVERAGE DATA & ANALYTICS

ACCELERATE DIGITAL

TRANSFORM THE BRANCH

ANZ - Mobile Tap & Go Digital &

Physical convergence

Tulsa Federal -Digital Banking

MX Money Manager

Pioneer Federal Credit Union ITM

and Digital Banking

Bank Audi –ITM Branch

Transformation

Top 10 US bank Re-platforming of

legacy infrastructure into

payments hub45% increase

in Remote deposit capture

transactions

90% of

teller transactions migrated

Up to 50% faster cash withdrawals

300% increase in balance transfers.

Thank You

Neill Harris –Product Marketing Director