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Wincor World shows the latest self-service apps

Hosted by German ATM manufacturer Wincor Nixdorf, the recent Wincor World event drew some 7,000 people from 40 countries to see the latest developments in self-service technology.

February 3, 2003

Editor's note: Steve Warner, based in London, attended the 2003 Wincor World exhibition. He filed this report for ATMmarketplace.

PADERBORN, Germany -- This year'sWincor World, always a multi-national event, boasted an even more international than usual flavor, with Wincor Nixdorf partners from around the globe offering their take on self-service applications, functionalities and products.

Overall attendance at the event -- which wrapped on Jan. 30 -- grew as well, to more than 7,000 visitors across three days.

Perhaps reflecting the mood of the industry, the ATM security area was one of the show's busiest. Though Triple DES is causing little angst in Wincor's home country of Germany, it's a different story on EMV (an international standard for chip cards named after its creators, Europay/MasterCard/Visa), with people seemingly still struggling with their strategies in implementing the move to chip by the 2005 deadline.

Lots of keyboards and PIN pads were on display at Wincor World.

Based on the number of products and services offered by Wincor Nixdorf and its partners, the next two years should see an increase in EMV preparedness. A display of different keyboards and PIN pads drew a crowd. Wincor has developed and deployed more than 120 PIN pads to meet its clients' needs, a huge number when one considers that most designs vary little from country to country.

Idrakas Dadasovas and Genadij Zavrid ofPenk Kontinentaishowcased  their ATMeye security system, which records events at the ATM on closed-circuit television, both at scheduled intervals and when sensors inside and outside the ATM detect problems such as seismic shocks or heat. The new system is capable of running four digital cameras, offering greater coverage than before.

Around the world in ATMs

Strolling through the international exhibit area was like taking a quick trip around the world. A great example was the ProCash 1500 being deployed by two major banks in 7-Eleven stores in Taiwan.

The full-function 1500 offers withdrawals, bill payment and fund transfers, with an optional telephone handset for service queries. A few comparisons to NCR's Vcom project with 7-Eleven in the U.S. were heard. The 1500 offers multi-functionality in a retail environment on a par with the Vcom project -- in a much smaller footprint. The 1500's small size is critical in Taiwan, which has a population of 23 million packed into 13,807 square miles -- an area about a third the size of the state of Indiana.

Also exciting is the advertising that seems to be working well, with a backlit topper running monthly campaigns and full on-screen advertisements. Post transaction "gambling/lottery" style games are also encouraging use of the machines, with instant redemption of in-store rewards encouraging even greater loyalty.

The United States was represented with the compactBANK installed atTyndall Federal Credit Union. The machine offers full branch capability at a self-service unit, a deployment to watch in 2003.

Joseph Maneen Jr ofWincor AutoTelldemonstrated his company's ATconvert and ATplay software offerings. ATconvert is designed to make dial-up connections more accessible for banks and limit changes made at the host end. It delivers cost savings by eliminating device handlers. ATplay is a remote management scheduling software. Potentially it could be used to deliver targeted advertising schedules -- delivering coffee ads to consumers in the morning, for example.

Integrating the enterprise

Wincor Nixdorf's ProClassic/Enterprise software was featured in a workshop on multi-channel self-service delivery. Using the multi-vendor ProClassic Enterprise platform, ATM, Internet, mobile, telephone and branch banking systems all can be integrated to deliver streamlined business processes as well as long-term cost benefits.

The workshop examined the drivers for the banks, including the migration of self-service devices over time. With three projects currently in implementation -- including a new project with Germany's HVB Group -- this presents new opportunities for the introduction of thin "smart" client architecture in the banking environment.

More from Day Two

Day Two offered an opportunity to delve deeper into the show and the products, prototypes and concepts that are making an impact on how self-service is moving forward.

Highlights included the ProCash Optima consulting service and new security features to help defeat skimming and "Lebanese loop" card scams.

ProCash Optima is a service that uses customer data to deliver a cost analysis of branch activity. From there, the consultation program makes a range of recommendations for the branch configuration, from total self service with cash recycling functionality, through assisted self service, to other mixes of tellers and self service.

This consulting service allows banks to analyze their branches and determine the best course of action based on cost analysis and metrics rather than subjective data streams. The service is sure to increase interest in branch automation into 2003 and beyond.

Pre-paid mobile phone top-ups seem to be gaining interest in Germany after recent deployments announced in the U.S., UK and other markets. The German market is meeting the challenge of bringing the telecommunications companies and financial institutions together. One company working to do so isI2C inc.

The entrance was a busy place during the three-day Wincor World event, which drew some 7,000 people to Paderborn.

The ProCash 3100 cash recycling product made a splash at the show. With European Union regulatory changes last year, the recycling model looks ready to explode across the European market. The 3100 reduces or eliminates cash replenishment costs and forms a core component of an automated branch solution.

Not much larger than a standard ATM, the 3100 accepts up to 400 notes and is another nail in the coffin of cash transactions at the teller station. A successful deployment of 350 in Switzerland  is prompting interest in the rest of Europe and elsewhere around the world.

A study in self service

The theme was continued in an afternoon workshop that examined assisted self service and the ProCash FOnet solution. This first came across as a technology that was looking for a problem to be solved. But it soon became clear this could deliver real cost and efficiency benefits in a banking environment.

Based on the premise that a majority of teller services are still cash oriented, the software links tellers and all self-service interactions. Deployed by Berlin's Bankgesellschaft, the system has delivered cost benefits through a reduction in teller security needs and staffing levels.

According to Bankgesellschaft's Reinhard Drews, his institution has reduced its transaction costs to about 24 euro cents per transaction since implementing the system last year. The system utilizes a fully integrated self-service package of ATMs, kiosks, cash recycling, statement printers and other devices to allow 24/7 service -- plus assisted teller services for other specialized products/access.

Security was enhanced, as was evidenced by the first robbery attempt. The tellers had no access to cash, Drews said, which caused the robber to wait for the system to deliver a one-time PIN for him to access funds, during which time the police were able to arrive and apprehend him.

Wrapping up in retail

Day Three was devoted to the retail self-service area, where the main was the iBeetle self-scan checkout device. Launched at the show, the system was developed in cooperation withOptimal Roboticsand is aimed at the European retail market. This product was under constant demonstration and seemed to strike a chord with the audience. 

Also in the retail area was an avatar product fromplan-b mediathat attracted lots of attention. An animated character that attracts passers-by to use kiosks, the character has developed a star status in Germany and runs a weekly comedy column on the die Bilt Web site.

An in-store wine selection program developed byWMS Weinmarketing Services GmbHhas proved popular in the Kaufhoff stores that have implemented it. This offers a number of different methods of wine selection, from price to appropriate accompanying foods. It also offers recipes that can be printed to accompany a consumer's selection.

Wincor's interactive window touchscreen, which includes a scent unit, provides smell, sound and vision. This is an irresistible combination when advertising food and drink products.

Speed's the thing

At a mock-up of a service station, Andy Richardson ofTexas Instrumentsdiscussed the growing use of radio frequency identification (RFID) technology and how it is being used to speed up payment systems in a range of different applications and industries.

The rollout of the Exxon Mobile speed pass project has led to lots of interest in RFID.  According to Richardson, the contact-less systems offer advantages over the contact chips being deployed worldwide in an effort to improve payment security -- not the least of them a lower cost. ATMs could incorporate contact-less technology in the future, Richardson said.

At a mock post office, Wincor Nixdorf's Procash 1500 was dispensing stamps. This has resulted in increased stamp sales in some German post offices where it has been deployed, as customers must buy entire sheets rather than individual stamps. Also on show was a self-service post system that weighs letters and parcels, prints stamps and accepts multiple payments.

Data shows that 80 percent of transactions at the teller position involves stamps, so migrating this to a self-service device seemed to make sense. Just as at a bank, it's logical to free post office clerks to sell high value products and services and deal with more complex transactions.

As the afternoon wound down, it was time for the families of Wincor Nixdorf employees to arrive. This gives the Wincor workers and their families an opportunity to see what their company delivers throughout the world as well as enjoy its hospitality. It closed the show with an effective illustration of how important its people are to the company.

Many of the solutions on display at the show -- from retail, to postal, to bank -- are continuing a trend started by the ATM many years ago. Other industries are emulating the ATM in migrating their services to a self-service or assisted self-service model. Where it goes from here is anyone's guess, but the trend seems sure to continue.