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Study predicts 70 pct. rise in ATMs running multivendor apps by 2020

June 2, 2016

By the end of 2015, approximately 1.2 million (40 percent) of the world's 2.9 million bank-grade ATMs were running multivendor software applications. By 2020, this number will grow to 2 million as banks invest in software to support omnichannel and branch transformation initiatives, according to "ATM Software 2016," a new report from retail banking research and consulting firm RBR.

China was the leading market for multivendor software apps, followed by Brazil, reflecting the major banks' longstanding practice of developing software in-house, the study found.

At a regional level, penetration of multivendor solutions is highest in the mature, concentrated banking markets of western Europe, RBR said.

"A single solution is crucial in rolling out new ATM technologies, like contactless transactions including Apple Pay and Android Pay," said RBR Principal Tom Hutchings.

The RBR report also concludes that future growth will be broad‑based and that, by 2020, multivendor software will run on more than 40 percent of ATMs in all regions except the Middle East and Africa.

Providers of ATM software include both manufacturers and independent companies. Banks typically procure complete solutions that combine the transaction application with a middleware platform that enables operation on different manufacturers' terminals.

Some financial institutions — as well as third-party software companies — source only the platform, and build their own applications on top of it.

According to the study, NCR Corp. is the largest provider of application software overall and for multivendor solutions, the latter thanks to a strong presence in China.

Wincor Nixdorf AG and Diebold Inc. have staked out the second and third largest shares. Together the two companies represent a market share roughly equal to that of NCR.

At the platform level, the largest independent software provider is KAL ATM Software.

The report also points out banks' demand for integration with omnichannel initiatives that link ATMs with mobile banking and CRM systems, and branch transformation projects that demand extended functionality and integration capabilities.

"The rapid evolution of banks' requirements creates opportunities for existing ATM software vendors and new market entrants alike," Hutchings said.