Unstoppable – the Next Gen ATM Wave of InnovationMike Lee - CEO, ATM Industry Association

16th October, 2019, “Europe ATM & Payments Innovation Summit”

Sheraton Roma Hotel & Conference Centre, Rome

The ATM Industry Association

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OverviewUnstoppable – the Next Gen ATM Wave of Innovation

1 Drivers of Innovation

2 Global Project Update

3 The business case for Next Gen ATMs: getting ready for the next wave of ATM growth

4 Future Expectations

5 Q & A

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1 Drivers of Innovation

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What is innovation?

Avoiding obsolescence by staying relevant!

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Thomas Cook Goes Bankrupt Leaving 600,000 Passengers Stranded…

Don’t fly off into the sunset!

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Elon Musk Reveals New Rocket Designs…Mars Here We Come

From earthbound tourism to space tourism…keeping the spirit of adventure alive!

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Q: What is the opposite of obsolescence?

A: Relevance = closely connected or appropriate to thematter in hand (New Oxford Dictionary of English)

Synonyms – suitability, fitness, adapted, compatible,consistent with, to be related to, to be fit for,i.e. to be connected to, and in harmony with, today’sworld

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LOL

How can we improve the ATM customer experience?

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The Focus of NextGen

What we heard at the 2019 ATMIA US conference:

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2 Global Project Update

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Deadline for feedback was end

of March, 2017

Feedback was very detailed

A clear consensus was reached

very quickly

The Industry RFI was issued January, 2017Sent out globally to 65 different manufacturers and vendors

“ATM Deployers believe that a new, App-Model-basednetwork architecture for ATMs will create a flexible, secureinfrastructure for ATMs seamlessly integrated with bothtraditional transaction processing systems as well asemerging and future payments systems through APIs andweb services interfaces.”

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Consortium for Next Gen ATMsA shift toward customer experience focused architecture

As of today 276 organizations on 6 continents areparticipating in the Consortium for Next-gen ATMs.

The Next Gen ATM blueprint was launched at the ATMIAEurope conference in Madrid, Spain, October 17th,2018.

Three committees are taking the Next Gen project forward:

• Standards and Technical & Governance Committee

• Next Gen ATM Security Committee

• Customer Interface & PR Committee

They are supported by three technical working groups;

• Functional User W/G

• Technical W/G

• Certification W/G

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ATM systemarchitecture inthe near future

Employs a new app- and

API-based architecture

• Cloud-based

• More vendor agnostic

• Simplified development

and deployment processes

Robust app options

• Web services

• Appliances

• App servers

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2019 Next Gen Timeline

• Implementation Guide – Standards & Specifications

The key project for 2019 is the definition of specifications

and standards required to enable the architectural

blueprint to be globally interoperable. The work of

ATMIA’s three Next Gen working groups is based on the

signed-off architectural blueprint, standards roadmap and

implementation model for a new API App model for

ATMs, which have been developed based on an

exceptionally broad industry consensus.

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2019 Next Gen Timeline

• ATMIA partners with standards committees such as CEN-XFS to

advance these objectives, aligning where possible with the

evolving XFS4IoT standard;

• ATMIA encourages standardization of functionality in the

vendor-agnostic interface in the NextGen ATM Architecture and

Implementation Guide to promote global interoperability;

• After a 3 month public consultation period ended on 30th

September, the Blueprint 2019 version 1.5 will be signed off by

the Standards, Technical & Governance Committee

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2019 Next Gen Timeline

• The Implementation Guide version 0.5 is looking at 5 transaction

types for the cash out function, including card-based, contactless

and cardless transaction types

• A high level Javascript API is currently being defined for Next

Gen ATM architecture

• A Proof of Concept exercise runs from Q4 2019- Q1 2020 with

Next Gen ATM prototypes top be showcased at ATMIA’s 2020 US

event in Houston

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2019 Next Gen Timeline

• Consortium members are actively discussing NextGen within

their organizations, some have already started a budget process

that includes NextGen, and a few are already well advanced in

NextGen product development;

• Most are also looking at bundling NextGen enablement with

other large-scale infrastructure projects, including end of

support for Windows 7, the 2020 roadmap including the

Hypervisor solution, the end of support for WinCE in 2023, and

accelerating adoption of contactless cards. A bundled, planful

approach can yield significant cost savings and produce a better-

integrated operational result;

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2019 Next Gen Timeline

• There’s consensus among ATM operators that NextGen

enablement should be approached from a consumer experience

perspective. The primary driver of NextGen success for the

industry will be making the changes visible and delightful to

consumers;

• NextGen will bring simplicity, consistency, make ATM operations

more cost-effective, and open up new revenue opportunities;

• Integration with consumer-owned mobile devices is a core

feature of NextGen and quite a few Consortium members are

already discussing it with their hardware and software suppliers.

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3 The business case for Next Gen ATMs: gettingready for the next wave of ATM growth

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Taking NextGen from Vision to Reality

NextGen ATMs can drive costs savings, revenue growth anda better consumer experience

NextGen can transform consumers’ view of ATMs

from old single-function cash dispensers

to modern, mobile-enabled, personalized, multi-function financial tools

The business case toolkit identifies 44 specific waysNextGen ATM can be monetized by all stakeholders

What return on investment (ROI) will NextGen deliverto my business?

https://www.atmia.com/connections/committees/consortium-for-next-gen-atms/business-case-toolkit/

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Fast, Thorough, Efficient Valuation

The Matrix identifies each benefit as either one-timeor recurring

The Matrix identifies who is most likely to realizeeach benefit – banks, manufacturers, IADs, etc.

The Matrix provides a formula for each benefit tocalculate the dollar impact on your business (andyour customers’ businesses)

The Matrix will show your payback time frame –

Simply input your investment costs and the relevantcost reductions & revenue increases to see your net ROI

(annual and cumulative) for years into the future

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4 Future Expectations

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A Time of Industry Migration is Coming

www.atmia.com/education/purchase-reports/dual-migration/

• When migration comes why not migrate to

the future at the same time to prepare for

another generation of relevant ATMs?

• Sunset dates for Microsoft systems require

analysis, planning and (big) investments

• The goal is to reduce migration costs and

to help the industry move toward

becoming vendor-agnostic

• To find an optimal path forward, the

Windows 10 migration and Next Gen ATM

architecture must be examined together

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2020-2025 Forecast

• The NextGen ATM online self-certification system will be completed in 2020 to

enable NextGen products and services to be certified as “NextGen ready”

• The first NextGen compliant products will be launched in major marketplaces

• Investments by ATM operators in NextGen ATM architecture will increase

substantially, as the compelling business case gains broader recognition

• Public and media interest in NextGen ATMs will grow, as positive consumer

experience generates a “buzz”

• Many banks will include NextGen ATM architecture in their strategic plans for

the five year period 2020-2025

• By 2025, NextGen ATMs will be an integral part of the global digital economy,

with tens of thousands of NextGen ready ATMs installed and thousands more

on order

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