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WINCOR: Automated ATM deposits, the world-over
May 29, 2008
LISBON, Portugal — Intelligent deposit is making self-service headlines throughout the world, a point proven by innovations made in the deposit-automation space in Europe, North America and Asia.
It's a story Wincor Nixdorf International encouraged its global customers to share during the second day of its International Management Seminar, which ends today.
From UBS AG in Switzerland to UBI Banca Italy and the SIBS (Sociedade Interbancaria De Servicos S.A.) network in Portugal, intelligent, automated deposits at ATMs are improving branch efficiency, enhancing customer satisfaction and shaving expenses from the bottom lines of internal banking operations.
It's a win-win, said Joao Luis Baptista, who serves on the executive board of SIBS, the operator of Portugal's MultiBanco national ATM network.
"Intelligent deposit, with cash and check, has been the biggest innovator at the ATM here," Baptista said. "It's opened doors for new functions. Intelligent deposit is facilitating things like bill payment at the ATM, which is very popular in Portugal."
Portugal is a market known for its hyper-ATM functionality. The country boasts the ability to process 90 different transactions at its ATMs, machines, which for the most part, all look and feel the same, since 99 percent of the country's ATMs are run by SIBS.
SIBS has been processing ATM and POS transactions for Portugal's 50 or so banks for the last 25 years. Additionally, the network oversees the Portugal's ATM-management and installation, which up until recently meant dealing primarily with one ATM provider — Papelaco, which was acquired by De La Rue in 2002.
Today, however, the market is opening new doors of opportunity for players such as Wincor Nixdorf, NCR Corp. and Diebold Inc.
De La Rue's cash-systems business in Portugal (formerly the independently operated Papelaco) continues to dominate the market, having more than 80 percent of the ATMs on the MultiBanco network.
But NCR, which just recently re-entered the market, is in the process this year of installing the 350 ATMs it sold to SIBS. And Wincor Nixdorf, which already has a presence in the market, in the last three months closed a deal for 500 ProCash 2150 ATMs, all of which will be equipped with Wincor Nixdorf's check-and-cash deposit module.
Diebold has maintained a presence in the country for a number of years and is, of the three, the market's dominant ATM provider, with about 20 percent of the market share.
From a deposit-automation perspective, Portugal is setting a pace for the world. The country began piloting envelope-free cash and check deposits in 2004. In 2006, it began rolling out machines equipped with the technology — putting Portugal a good 18 to 24 months ahead of most of the banking world.
But in a market known for its advanced ATM offerings that news is not surprising, Baptista says.
What is interesting is how the rest of the world can learn from the example Portugal is setting, says Eckard Heidloff, Wincor Nixdorf's chief executive.
"Portugal is a high-end market," Heidloff said. "We are very interested in this market because it is so innovative. The rest of the world, including the United States, could learn a lot from Portugal," he said with a laugh.
But Portugal has set a precedent that can be learned from, a fact evidenced by the success intelligent, automated deposits are having in other parts of the world, including Switzerland.
Dorothee Borer, executive director of UBS AG in Switzerland, which began migrating its ATMs in 2006 from basic cash dispense to include more enhanced functions, such as cash recycling and automated, envelope-free deposits, says UBS's self-service machines and ATMs now get 60,000 transactions per terminal per year.
At each of UBS's 350 or so ATMs equipped with cash-recycling capabilities, about 10,000 transactions per year are cash-in transactions. Around 37,000 transactions are cash-out, Borer said.
"We know now that we cannot get a long without self-service anymore," she said. "That is definitely quite clear. And intelligent deposit has played a big role."
Banking Executive SummaryDepositsNorth AmericaPublic CompaniesManufacturersOtherBank / Credit UnionBranch TransformationDiebold NixdorfWincor Nixdorf International
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