Article

NCR signs ATM deal in China

NCR signs a major ATM deal in China, which is predicted to become the world's largest ATM market by 2015.

December 6, 2010

NCR Corp., the world's largest ATM manufacturer based on annual shipments, yesterday announced that it had signed a major ATM deal in China, which is predicted to become the world's largest ATM market by 2015, surpassing the United States.

NCR sold 1,500 ATMs to ATMU (China) Technology Co. Ltd. for an undisclosed price. ATMU, which is based in Tianjn, China, owns and operates an ATM network through a profit-sharing model with co-operated banks. The co-operative model enables banks, especially small– and medium-sized financial institutions in China, to avoid making separate investments in dedicated ATM fleets.

"NCR recognizes ATMU as an innovator in providing an alternative option to banks' ATM investments, which is particularly attractive for small-to-medium size banks," said Gary Miao, president of NCR Greater China. "The deal has broadened our ATM presence in the 2nd and 3rd tiered market. We will continue to partner with different providers as part of our expanding channel sales strategy in China. We are pleased that ATMU has recognized that NCR SelfServ ATMs can help generate revenue and provide highly available customer access."

The latest deal with ATMU is NCR's third with the organization in three years. ATMU, which also provides outsourcing management, software development and ATM maintenance, has purchased more than 3,000 ATMs from NCR.

With this deal, ATMU purchased the NCR SelfServ 22, 25, 31 and 36 models. The SelfServ 22 is a cash-dispensing machine that provides bill payment, funds transfer, mobile phone top-up, vouchers and mini statements. The SelfServ 25 is a through-the-wall and vestibule ATM. It provides bill payment, funds transfer, mobile phone top-up and mini statements. The SelfServ 31 is a freestanding ATM for any indoor location. It offers intelligent cash deposit or recycling. The SelfServ 36 is an exterior or through-the-wall or vestibule ATM. It offers intelligent cash deposit or recycling.

NCR, which is based in Duluth, Ga., introduced the SelfServ line in January 2008. According to the company, SelfServ line machines are unique because they are equipped with self-healing technology. The machine recovers from some minor failures within minutes, eliminating the need for a bank to send out a technician to repair the machine.

The agreement also is an example of the growing number of major ATM deals that are being signed outside the United States.

"With the three big banks in the U.S. done with their major rollouts, the big orders are more likely to come from China, Brazil and Russia," said Gil Luria, senior vice president of Equity Research at Wedbush Securities in Los Angeles. The big three U.S. banks are Bank of America Corp., JPMorgan Chase & Co., and Wells Fargo & Co. Wells Fargo, however, has not announced the completion of its rollout of its intelligent deposit ATMs. Bank of America completed its rollout in December and Chase finished this spring.

China is on its way to becoming the world's largest ATM market, according to Retail Banking Research Ltd., a London-based strategic research and consulting firm. China will have 545,000 ATMs by 2015 compared with the United States, which will have 435,000 ATMs.

China is an ATM growth market, while the U.S. is primarily an ATM replacement market, said Retail Banking Research.