Wincor Nixdorf signs second agreement with Hamburg bank

Sparkasse Harburg Buxtehude, a Hamburg, Germany, savings bank, has expanded its outsourcing relationship with ATM manufacturer Wincor Nixdorf AG.

Wincor Nixdorf announced Monday that it has signed a five-year agreement overseeing cash-management services for the bank's 271 self-service machines.

The Paderborn, Germany, technology company will plan and control cash-in-transit services to optimize cash holdings, enabling Sparkasse Harburg Buxtehude employees to concentrate on the financial institution's core-banking business. Wincor Nixdorf's cash-management solutions are designed to automate cash processes and reduce the cost of cash handling by as much as 20 percent, Wincor Nixdorf officials said in a statement.

The cash-handling agreement covers 64 ATMs, 18 cash-recycling ATMs, 89 statement printers, 78 self-service terminals and 21 automated teller safes, Wincor Nixdorf said.

This is an important agreement for Wincor Nixdorf, Gil Luria, vice president of research for Wedbush Securities in Los Angeles, tells ATMmarketplace.com.

"It is a big outsourcing deal because Wincor Nixdorf sees cash-management services as a way to grow its business above the ATM-market sales," Luria says. "Cash-management is a nascent market, but it is expected to grow very fast."

Wincor Nixdorf is the world's second-largest ATM manufacturer based on annual shipments. Like rivals NCR Corp. and Diebold Inc., Wincor Nixdorf has emphasized management-service agreements as sales of individual ATMs have slowed in most parts of the world because of the recession. NCR, which is based in Duluth, Ga., is the world's largest ATM manufacturer, and North Canton, Ohio-based Diebold holds the number three spot.

The contract is the second in two years Wincor Nixdorf has signed with Sparkasse Harburg Buxtehude. In April 2008, the manufacturer inked a deal with the financial institution to manage its ATMs and other self-service equipment.