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Direct charging and wireless ATM connections steal Australian show

ATM deployers in Australia and New Zealand meet in Sydney next week to talk ATM fees, new opportunities for wireless deployments and getting a leg up on ATM rams and bams.

March 15, 2009 by Tracy Kitten — Editor, AMC

Banks and independent ATM deployers in Australia have their hands full these days. The March 3 dawn of direct charging at the ATM, the country's persistent battle against ram raid attacks and the ever-present quest for new ATM sites are the first challenges that come to mind. And they're all issues being addressed during the ATM Industry Association's upcoming ATMs in Australia and New Zealand 2009 show, which runs March 23 through March 25 at the Grace Hotel in Sydney.

Among the event's presenters will be Chris Hamilton, chief executive of the Australian Payments Clearing Association, and John Simon, chief manager of the Payment Policy Department for the Reserve Bank of Australia. The two are co-hosting a workshop about preparing for the new regime of direct charging. The Monday-morning session will provide an overview of the direct-charging regulation, potential roadblocks to the new ATM fee structure, opportunities for deployers to increase revenue and build customer loyalty, and how best to handle or manage public and consumer-relations as direct charging has been a hotbed of controversy in mainstream media.

Charis Palmer, managing editor of Online Banking Review, says the direct-charging model offers opportunity for new types of growth, if ATM deployers can get beyond the haggling over the fee itself.

"The Reserve Bank says the continuation of foreign fees is unjustified and against the spirit of the reforms, and that it will be monitoring developments in such fees over coming months," Palmer writes. "Despite jostling over fees, the new regime represents a real opportunity for institutions to promote alternative channels, including online and mobile banking. The strongest concern raised by consumer advocates has been the impact on ATM users that check their account balance before withdrawing funds effectively being charged twice to access their cash. Mobile banking is an obvious solution to this problem, but uptake has been slow and promotion of the channel limited to date in Australia, despite the Commonwealth Bank being the latest to launch the service last year."

Mangala Martinus, a manager for Edgar, Dunn & Co., also sees potential for direct charging, but he's not looking quite so far outside the box just yet.

Martinus, who is hosting "Direct charging perception vs. reality" on March 24, says the consumer's perception of direct charging could impact the direction the new fee structure takes.

"This presentation looks at some of the market predictions relating to the potential impact of direct charging on ATM transaction volumes and network growth," he said. "However, forecasting trends is always difficult, when cardholder and competitor behavior is so dependent on the fee structures that are to be implemented. With the new fee structures — for ATM operator fees, direct charges and issuer fees — in place as of March 3rd, it is now possible to review how these fee structures may affect those original market forecasts."

Ram raids

No Australian conference would be complete without a quick debrief on the state of ram raid attacks, and on March 25, Richard Gould of Lockit Pty. Systems Ltd. will discuss how technology can be used to thwart ATM theft.

Gould, who in March 2006 released the Raminator, an ATM-security device that prevents an ATM from being dislodged or removed, will discuss how new ATM-security technology is not only protecting ATMs but also changing the habits of the criminals themselves. And during the Australian show, Gould will introduce his newest ATM-protection product, the Baminator, which protects ATM cash cassettes from explosive attacks.

From 2005 until 2007, Sydney alone suffered more than 250 ram raid attacks on ATMs. Since the release of the Raminator, Gould says those attacks have dropped 95 percent.

"It appears no professional gangs see ATMs as a soft target (anymore) and (now) leave them alone," Gould said. "The ATM Raminator has literally stopped ram raids."

Now that criminals have moved beyond ram raids, Gould says, the technology ATM deployers use to protect their ATMs must also progress.

"Some recent changes show gangs attacking with gas attacks called â€˜bamraids,'" he said. "It is the ATM attack of choice and has led to some very successful cash grabs."

Explosive attacks have also been reported in other parts of the world, namely Africa. And specifics about ATM protection in South Africa will be discussed on March 24 during a presentation conducted by Kalyani Pillay, the chief executive of the South African Banking Risk Information Centre.

No tethers: Go wireless

Direct charging is opening doors for a whole host of new ATM deployments, as independent ATM operators and deployers are expected to seek new revenue-generating opportunities. New placement opportunities are likely to abound, and wireless connectivity options are setting the stage for a wider range of deployments in both Australia and New Zealand.

On March 25, Mark Gamon, director of sales and marketing for Symstream Technology Inc., will host "Wireless connectivity for financial services — a market outlook on the adoption of wireless technology for the financial market."

Gamon says wireless connections are allowing ATM deployers to not only place ATMs in more diverse locations, but also to cut their connectivity costs and improve ATM management.

For more information about the ATMIA show in Australia, contact Amanda Hardy or visit ATMIA's conference Web site.

Included In This Story

ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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