Contents: 2009 ATM Software
Trends and Analysis
Multivendor ATM software represents value in tough
Chapter 1 ATM
survey analysis: A general overview
Chapter 2 A
regional focus: The Americas
Mature markets seek
efficiency, security and customer interactivity
Customer relationship management, or
Automated deposits and
The benefits of
Chapter 3 A
regional focus: Europe, the Middle East and
Emerging economies drive
Chapter 4 A
regional focus: Asia-Pacific
Conclusion What does
the future hold?
In its ATM Software: Trends Analysis for 2007-2008 last year, ATM Marketplace reported on the slow progress the financial industry had made toward migrating from OS/2 to Windows. That migration is continuing in all regions of the world, though financial institutions, or FIs, in emerging economies are ahead of the curve when it comes to making the transition.
A slow migration to Windows delays an institutions ability to implement a single software application across its entire ATM network. Banks, credit unions and other financial-services providers have warmed to the idea of an independent, multivendor-software solution that allows them to unlock hardware, software and support from proprietary solutions from hardware vendors. But ATMs must operate on Windows to support a multivendor solution and take advantage of current and future functionality.
Five years ago, the discussion was about the need to move to Windows, and now were talking about business outcomes, such as marketing at the ATM and the opportunity to cross-sell or enhance the user experience, said Keith Lewis, director of marketing for Diebold, Incorporated.
But the future of ATM software in 2009 and beyond may be clouded by the current global financial crisis. A new TowerGroup research report, A Bumpy Flight, Landing, and Takeoff for the Financial Services Industry, described the current climate as an economic shockwave causing tectonic shifts in the global financial services landscape. Multivendor software makes investing in a hardware-independent solution an excellent option for FIs despite the challenging environment. On one hand, multivendor software represents an investment that has to compete with limited corporate resources. On the other, a large return on investment in the form of reduced operating costs for ATMs is associated with a shift to a multivendor solution, providing significant savings for FIs in the form of reduced operating costs, said Aravinda Korala, chief executive of KAL, a multivendor-software provider. The No. 1 reason FIs look for an ATM software change is cost reduction.
Citibank is in the process of transitioning its global ATM network. The bank has a presence in 23 countries and is beginning to launch KALs multivendor software in some of those markets rather than continuing to develop and manage its ATM software in-house.
Because our ATMs dont generate much revenue, were moving away from proprietary software to continue to cut costs, said Rene Lumley-Hall, international ATM strategy manager for Citibanks International Consumer Bank. Our approach is to go with an ATM software that is an industry standard, a multivendor solution that is compatible across numerous markets where we have presence, as well as a variety of hardware vendors. Enhanced functions such as robust remote management and reporting not only reduce service costs but also give FIs insight into consumer behavior.
Banks are not only interested in traditional incident information, but they are really trying to understand consumer dynamics and business intelligence generated through their network, said Joe Gallagher, general manager of financial software solutions for NCR Corp. There is a business case for new transactions that could generate revenue, but in the current environment anything that will deliver cost savings is very attractive. Next on the priority list is upgrading ATM software to comply with security requirements. Often it becomes clear that when an FI faces a major security upgrade, such as implementing the Europay, MasterCard and Visa, or EMV, standard, a patchwork approach to ATM upgrades will likely cost much more in the long run. A multivendorsoftware upgrade often speeds implementation.
Its the same with security as other aspects not only do you drive out costs with a standardized platform, but its the standardized process that goes on around it that contributes to costsavings, Diebolds Lewis said.
Finally, a multivendor solution can accommodate upgrades to meet market changes, such as accepting cash and check deposits, offering personalized transactions, supporting cash-recycling cassettes, dispensing stored-value cards, providing mobilephone top-ups and much more.
An integrated software approach allows FIs to choose the functionality they need with the option to add services later and integrate the various banking channels, including ATM, branch, mobile and online.
NCRs Gallagher said that with the right software architecture, an FI can choose to enable various types of transactions through the traditional cash-dispensing authorization network or open it up to other channels.
The banks ideally want to leverage what theyre doing, so they want to be able to connect not just to the traditional switch infrastructure but also the online and in-the-branch environment, he said.
FIs typically change ATM software only when its absolutely necessary.
When banks discover what (multivendor software) does for them, they like it, KALs Korala said. Once they get it, they stay with it. Although cost reduction typically tops the list, priorities may shift depending on regional factors.
This year ATM Marketplace has broken down its updated edition of the ATM Software Trends and Analysis guide to highlight major global ATM markets. ATM Marketplace sought input from all substantial ATM players around the world. The purpose of the research is to continue to build a comprehensive view of ATM software and the future of the financial industry.
This annual guide aims to assist FIs in the development of their own software strategies.
By Gary Wollenhaupt, contributing writer, ATM Marketplace