LONDON - According to a new report published by Retail Banking Research, 56 percent of ATMs in Western Europe had been converted to Windows at the close of 2005. RBR now estimates that figure has risen to 64 percent.
Level Four Software warns that for financial institutions that have not considered their ATM testing and deployment strategy from the outset, the costs associated with migration are likely to outweigh the benefits.
Expectations of the new Windows-based ATM operating platform include reduced software costs, easier monitoring, more efficient cash-management and a wider range of customer service and branding options. But Level Four claims that while some of those benefits have been realized, they have been compounded by unforeseen complexities.
Frequent Windows updates and stability issues that relate to interoperability of many ATM applications have resulted in terminals that can be more problem-prone than the early OS/2 deployment in the late 1980s.
"Undoubtedly Windows-based ATMs are the future, yet many banks have found that the migration path has proved far from smooth," said Martin Macmillan, marketing and business development director at Level Four. "Customers are used to reliable ATMs and will not tolerate poor service. Banks must get their testing procedures perfected, if they are to operate a trouble-free ATM network and maintain customer loyalty."
The scale of testing needed for Windows ATMs has proved challenging, especially considering a full regression test can take banks two to three months to execute. A test is required each time a software release occurs, which can now be as frequent as once a month. In addition, Level Four says, tests are necessary when changes are made to other applications running on the ATM, and retesting also must be carried out after every Windows security update.
"Windows presents a compelling case for retail banks, so it's no wonder that such a high percentage have made it their ATM operating system of choice," said Dominic Hirsch, managing director of Retail Banking Research. "However, with the significant increase in testing required, it's vital that banks exercise caution and look carefully at their testing and software deployment strategies to ensure they do not compromise the customer experience."