News

Wincor Nixdorf accomplishes 10-year goal in three years

January 25, 2011

PADERBORN, Germany — Three years ago, Eckard Heidloff, president and CEO of Wincor Nixdorf AG, said he wanted the manufacturer to capture in 10 years a 10 percent share of annual U.S. ATM shipments.

On Tuesday, during the first day of Wincor World 2011, the company’s annual trade fair and expo, Heidloff proudly disclosed that Wincor Nixdorf had reached its goal in three years.

“Because of the growth, we have had to build up our service organization to meet the needs of our customers,” Heidloff said.

He also believes that regional and small banks finally are ready to open their wallets and buy intelligent deposit, or envelope-free ATMs. If this occurs, it would further expand Wincor Nixdorf’s share of annual U.S. shipments.

Jens Bohlen, CEO of Wincor Nixdorf Inc., which is based in Austin, Texas, said the manufacturer is now focusing on Tier 2 banks, which own 500 to 3,000 ATMs. The company also wants to sell its ATMs to Tier 3 banks and credit unions, which own 50, 60 or maybe 100 ATMs. In marketing to Tier 3 banks, Wincor Nixdorf will form partnerships with other companies to better reach out to these smaller customers. Wincor Nixdorf will continue to service Tier 1 national banks by developing innovative products for them. In addition, the company is promoting its multi-vendor software to customers. The software operates ATM networks, Bohlen said.

The decisions by mid-size and regional banks to buy intelligent deposit ATMs comes after the three largest banks — Bank of America, Wells Fargo & Co. and JPMorgan Chase & Co. — have either completed or nearly completed their rollouts of envelope-free ATMs.

Bank of America and Chase have advertised how much easier it is for bank customers to make deposits.  Bank of America officials also have discussed with analysts how much intelligent deposit ATMs have reduced costs.

The two testimonials have pressured mid-size and small banks to begin installing envelope-free ATMs after years of testing them.

Wincor Nixdorf’s largest bank customers are Wells Fargo and Chase, but the manufacturer also has signed deals with Cardtronics Inc., the world’s largest non-bank deployer of ATMs.

Gil Luria, an analyst with Wedbush Securities in Los Angeles, wrote in his Jan. 24 analyst’s report that Wincor Nixdorf’s U.S. market share is waning because of the completion of deposit-automation rollouts at Chase and Wells Fargo last year. The decline in business pressured results in 2011, Luria wrote.

In the first quarter, Wincor Nixdorf reported sales of 66 million euros (U.S.$90.43 million), which was below analysts’ expectations of 79 million euros, Luria said. Overall, the manufacturer reported first-quarter revenues of 634 million euros, which exceeded analysts’ expectations of 624 million euros.?