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The case for converting ATMs to Windows CE - instead of Windows 7

February 27, 2014 by Mark Smith — VP of Financial Solutions, Kahuna ATM Solutions

It seems like just a few years ago that ATM manufacturers and the banking industry had to migrate to Microsoft Windows XP software.

This change was forced by the discontinuation of support for IBM's OS/2 software that had become the industry "standard." Microsoft Windows XP prevailed as the operating system of choice. Conversions were expensive, time consuming and did not go without hiccups or headaches.

In April, we'll see the discontinuation of support for Windows XP software and the banking industry will have to convert to Windows 7. Every link in the ATM chain is affected by this … from ATM manufacturers to core processors to banking ATMs, etc.

Software must be tested and certified, and proven to work across multiple networks seamlessly. Hundreds of thousands of ATMs must be upgraded or replaced in the process.

But not all ATMs. You've seen them everywhere. ATMs unaffected by the Windows conversion have long been in convenient stores, hotels, airports, entertainment areas and even some financial institutions.

These ATMs largely use Windows CE as an operating system, a version of Windows that is perfect for ATMs that dispense cash, but is not subject to the upgrade demands of Windows XP/7.

Two different platforms, each with its respective benefits. No debate that each has its place in today's ATM industry.

But did you know?

— ATMs that use Windows CE are significantly less expensive than traditional banking ATMs. Thousands of dollars less.

— These ATMs offer the most common transaction mix to cardholders: cash withdrawal, balance inquiries and transfers. They can also accommodate new features such as charitable donations, gift card purchases and dynamic currency conversion.

— Their reliability ratings are phenomenal. When Windows CE ATMs were first introduced 15 years ago, many viewed them as "toy" ATMs and thought they would not stand the test of time. Many locations today boast that their ATMs are over 10 years old and they have had great success in generating revenue.

— This type of ATM wasn't supposed to last. But did. To this day, Windows CE-driven ATMs require far fewer service calls than traditional banking ATMs. Most average two services calls annually for the repair or replacement of a componentThat is an incredible achievement.

But what do you give up?

Traditionally, Windows CE ATMs have not accepted check or cash envelope deposits, and they are not candidates for check imaging or deposit automation.

Does it matter much?

Years ago it mattered greatly to financial institutions that had large bases of cardholders and wanted them to be able to make deposits. 

However, deposit taking never surpassed the demand for cash withdrawals. Cash withdrawals are still the highest demand service at an ATM. Even with the sophistication and convenience of deposit automation and check imaging, not every financial institution has migrated to this technology.

And, there's a good reason for that: remote check deposit. Banks and credit unions are clearly focused on online and mobile banking. Today, it is very simple to deposit checks using a cell phone. The demand to accept ATM deposits at a branch or off-premise location has been greatly reduced by remote capability. We no longer drive to our financial institution — unless we need cash.

Windows CE-based ATMs are not just for indoor locations. They have long been certified for use in outdoor kiosks, islands and through-the-wall environments. Often, a night deposit box is placed adjacent to a drive-up ATM for the small number of accountholders who need to make deposits.

Economically, it's a no-brainer. The cost of ownership for Windows CE ATMs compared with traditional banking ATMs is night and day. The former are less expensive to purchase, less expensive to service and less expensive to upgrade in the field.

A final benefit. Windows CE does not have the same vulnerabilities as Windows XP/7 when it comes to viruses and malware attacks. Since it is not the predominant operating system used across all networked devices, it is not a fruitful target for criminals.

Windows XP, 7 and 8 are used in many more devices than ATMs and they're always being upgraded to defend against attack. These upgrades occur several times a year.

Software updates to Windows CE are far less common. CE-based ATMs also adhere to all mandates for ADA, PCI and are EMV compliance for the US market.

Think about the needs of your cardholders and how they will continue to bank in the future. Fewer and fewer have to come to the financial branch to conduct their transactions. They can do the majority of them online or via a mobile app. That trend is continuing and we'll see the need for personal tellers diminish.

Accountholders will always want access to cash, but it doesn't require an extremely expensive ATM to dispense funds.

The "toy" ATMs have proven themselves. They continue to be the best investment a financial institution can make to offer cardholder convenience.

If the daunting cost of migrating your ATM fleet to Windows 7 overwhelms you, consider Windows CE ATMs as an alternative to traditional banking ATMs. It might be the smartest decision you could make about your ATM program. 

About Mark Smith

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