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May 5, 2014 12:43 pm

NCR-Interactive-Teller-ATM, Video Teller

Over the last few decades, we have watched technology disrupt many industries — requiring them to change rapidly or risk becoming obsolete. When new technology is coupled with an effective go-to-market strategy and a great consumer experience, competitors within that business segment are forced to re-think how they deliver products and services. We have experienced this with retail stores, gas stations, airports, car rental companies and the like.

The banking industry has struggled for years to figure out how to get greater efficiency from its current branch networks. Their No. 1 one cost in many cases is labor, while expensive brick-and-mortar investments run a close second. Over the last decade, some innovative financial institutions have quietly set out to reinvent the way they approach retail delivery, and have an effective framework to do just that.

Branch transformations should begin with six questions. How can we …

  1. leverage our workforce and decrease labor inefficiencies?
  2. build smarter, smaller, less costly branches?
  3. eliminate cumbersome cash processes?
  4. offer extended service hours without the expense of leaving the branch open?
  5. convert cost savings into competitive product offerings and grow market share?
  6. engage consumers and promote customer loyalty?

While this might seem a tall order, it’s exactly what many cutting-edge FIs have been able to achieve by implementing comprehensive branch transformation initiatives. These six questions are some of the filters by which technology should be analyzed, when deciding to invest in and implement.

Branch transformation cannot be fully realized simply by automating deposits or adding newly designed ATMs and teller cash recyclers. And while new, modern branch designs are certainly refreshing, if they can’t deliver cost savings and eliminate inefficiencies, the “Apple Store” concept falls short of answering the six questions that serve as the foundation of transformative retail banking.

Today’s financial transaction climate is complex and requires an omnichannel analysis, rooted in offering consumers what they want when they want it. We still live in a world that often requires a physical document or check to be viewed by a human being. Remote deposit capture with a mobile device is useful, but in many cases it’s just not enough.

Additionally, some transactions are too complicated to be performed at an ATM. And many consumers simply refuse to use an ATM card or PIN. For these reasons, branch transformation cannot be fully achieved without a “video teller” alternative.

A teller-controlled video device answers all six transformation questions.

  1. It allows a financial institution to centralize its workforce and leverage peak banking hours in a way that traditional branches can’t.
  2. It gives FIs the ability to build branches that are smaller, more efficient, and more sales and service focused.
  3. It preserves traditional teller services while eliminating laborious cash counting and balancing, and offers drive-up services without the expense of pneumatic tubes.
  4. It allows the branch to stay open up to 24 hours a day without the cost and security issues a traditional bank.
  5. It eliminates antiquated processes and expenses — savings that can be turned into competitive products and increased revenue.
  6. It can give customers the freedom to bank up to 24/7, and to complete up to 95 percent of transactions that used to require a branch visit during business hours.

A 1,000-square-foot branch, that doesn’t require a teller line, bullet-proof glass, and other expensive investments, but does offer 24-hour service with video tellers and loan specialists, is not the branch of the future. It is the branch of today. Disruptive change has finally arrived in the banking sector!

FIs that want to avoid losing market share to more efficient competitors — and risk becoming obsolete — will embrace true branch transformation as today’s reality, not tomorrow’s potential threat.

April 30, 2014 | by Terrina Rishel

(Source: ATM MarketPlace)

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April 24, 2014 2:09 am

Data-security-Feaphoto-457x319

According to a Verizon’s annual report on data breach investigations, hackers in 2013 were particularly invested in Web application attacks, cyber-espionage and point-of-sale intrusions.  Finance suffered the most at the hands of cyber-criminals and was the victim of 465 separate reported breach incidents.

Finance’s dubious distinctions  as leakiest industry is somewhat unsurprising given that the report found that the vast majority of attacks are financially motivated, with the use of stolen credentials representing the leading threat of 2013 and contributed to 422 breaches.  Malware and more traditional hacking followed on the list.

The report also showed that while targets are getting better at detecting breaches, attackers are also getting much faster at deploying them.

“A lot of attackers simply look for vulnerable victims on the Internet and deploy automated attacks,” Paul Pratley, an investigations manager with the RISK Team at Verizon told PC World. ”Often it will take seconds to minutes before a network is compromised, but it can take a really long time for an organization to discover it—weeks to months or even a year, he said. “That’s something we’d really like to see change.”

On the upside, the report also showed that organizations were more likely to find breaches themselves instead of being informed by third-parties.

(Source: PYMNTS.com)

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April 23, 2014 12:27 pm

Windows CE logo

Microsoft’s decision to end support of Windows XP has been all over the news and buzzing through the ATM industry. While it is true that thousands of ATMs world-wide run on the XP operating system, Triton Systems wants to assure our customers that none of our currently supported ATMs are using the Windows XP platform including 96XX, 97XX, 91XX, 8100, R1600, RL5000, RL2000, FT5000, RT2000, ARGO 7.0, ARGO 12.0, and Traverse.

In 2003, Triton Systems began using Microsoft Windows CE, which gave Triton more control over the lower level operating system.  This allowed us to make our own modifications and also secure the system by using proprietary digital signatures on all software and installation files.  This prevents unauthorized loading and execution of unrecognized software.

Later this year, Microsoft will end support for Windows CE 5.0. As part of this transition, Triton will migrate to Compact 7 for all new ATMs. As we have done with XScale products that run Windows CE 4.1, we will continue to update software for CE 5.0 for as long as it is feasible, and make upgrade kits available to our customers that choose to upgrade legacy CE products to the new operating system.

In addition, our team will continually audit for security vulnerabilities to ensure that our system remains locked and protected. Security has always been a priority at Triton, please be assured that our team will continue to keep your ATMs safe.

For more information visit our website www.tritonatm.com or contact sales@triton.com.

(Source: atmAToM)

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April 22, 2014 1:33 am

 

It’s bad enough that these lowlife wretches would steal someone else’s property … But to compromise an entire building with a vehicle in order to do it is beyond the pale. It’s a much more aggravated assault on a civil society, one that respects no amount of industry or investment on the part of store owners.
— Augusta Chronicle, Feb. 13, 2014

by Rob Reiter
co-founder, Storefront Safety Council

Fifty-thousand dollars of damage in Nutwood, Ohio; more than $100,000 damage in Alberta, Canada; $25,000 damage in Casper, Wyo., and $43,000 in York County, S.C.

Tornados? Earthquakes? Drunk drivers? None of the above. This $218,000 worth of damage was caused by thieves bent on stealing ATMs.

Hundreds of times per month — there’s no central databank in the U.S., so no one has a good handle on the grand total — thieves steal pickup trucks, SUVs, or even passenger cars and slam them through the front doors, windows and walls of convenience stores, restaurants — even state office buildings.

In other countries these are called “ram raids,” but in America the term “crash and grab” is used increasingly to distinguish this crime from one that might merely use a hammer to smash a window and gain entry.

Easy to use, easy to steal

The crash and grab ram raid is a crime with a very low barrier to entry. There are plenty of “how to” instructions available on YouTube and smart thieves are rarely apprehended.

All that’s required to get started is one stolen vehicle and a dark hoodie for a disguise. Many ATMs sit just inside the doors or front window of a store for easy customer access. And unfortunately, easy criminal access, as well. A thief looking for targets will find them in places where he already goes every day — for gas, for cigarettes, for lunch.

pull quote - mark smith kahuna atm solutionsMost experts agree that crash-and-grab theft is likely to become even more frequent. “The crash and grab pattern is always the same and it works well for the criminals,” Mark Smith of Kahuna ATM Solutions said. “The irony is they commit a felony and only find a couple thousand dollars in the ATM. Split among several gang members and you can see why they would want to hit 10 locations to make it truly pay off for them.”

Crash and grab is also getting increased attention from law enforcement, the ATM industry, and insurers. The problem is simply too costly to ignore.

A 2012 guide published by Diebold Inc. and ATM Marketplace estimated that about 300 ATMs are removed (stolen) from financial institutions annually. They pegged the cost of physical attacks on ATMs at $4.5 million per year. But that’s just banks, and the fact is that the vast majority of crash and grab ATM thefts take place at retail locations.

Using a conservative assumption of 50 ATM thefts per day nationwide (one per state), and allowing $2,500 for the ATM and $10,000 for repairs and loss of business, the cost of crash and grab theft comes to $625,000 per day, $19 million per month, $228 million per year.  

And that’s just property loss. The total does not account for the theft of cash from the machine itself. Assume a modest $1,000 for each theft and you rack up another $18 million in losses.

Add to this the estimated $4.5 million from bank attacks, and the total annual loss from crash-and-grab ram raid thefts in the United States comes to a hefty quarter of a billion dollars. And that’s using conservative numbers.

Beware of backlash

There are many victims in a crash-and-grab incident. There’s the ATM owner who loses his machine and its cash and the insurer who has to cover the loss. And then there’s the merchant and his insurer, who likely have suffered a loss 10 times greater when damage repair, lost merchandise, lost business, and increased security and insurance costs are factored in.

Municipalities also suffer: They have law enforcement response costs, report costs, building inspection costs, and the negative publicity that comes with this high profile crime. In response, cities such as Houston and Atlanta have imposed additional hurdles and restrictions on ATM installations.

And finally, there is the danger of escalation with these crimes; a number of ATM crash and grabs have been carried out while employees were actually working in the store.

Prevention is crucial

CCTV recordings have shown that experienced thieves can smash a storefront and shove an ATM into a vehicle in less than one minute — far faster than police response times in an urban area, much less a rural one. But CCTV, while an excellent security tool, is not an effective deterrent — as evidenced by the increasing frequency of thefts.

To discourage crash-and-grab theft, the ATM industry should follow the lead of the propane gas industry. The propane industry installs stout, ASTM-compliant steel bollards around propane tanks to prevent accidental crashes that can cause fire and explosions.

The ATM industry can take similar measures to prevent deliberate attacks. Strategic placement of bollards can prevent a vehicle from crashing into a store in the first place. There’s no need to invest in a fortress; proper, affordable protection will send crash and grab thieves down the street to find softer targets.

And remember — there are also lives at stake. Anyone working or shopping in the store might be at risk of being struck by a heedless crash-and-grab crew.

Insurers and risk managers, pay attention. This is costing you money now and could cost you even more soon.

(Source: ATM Marketplace)

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April 21, 2014 12:48 pm

ATM Transformation

A few industry watchers have proclaimed that the ATM is dead. I say that’s ridiculous — it is only adapting to new roles and requirements.

The view that the ATM is dead is built on a developed-world assumption that cash is on its way out.

While it’s true that electronic payments are growing significantly, cash still accounts for 9 percent of consumer transactions across the globe. In this world, the ATM can be a secure outpost for getting cash — leveraging its central position within a multichannel solution in order to drive revenue.

pull quote

Financial institutions continue to be driven by the growing consumer trend toward self-service bank. These days, their customers are demanding greater control over their financial information, and they’re looking for additional solutions to self-manage their financial situation.

Consumers expect to be able to gain access to their account information and funds, at anytime, from anywhere, and with no limitation imposed by a physical payment card.

While mobile technology enables many services that support this trend, cash remains a strong preference with consumers, still making the ATM channel a frequent touch point to serve existing customers, as well as a place of opportunity to acquire new customers and cross-sell financial products.

In this world of sluggish economic growth and continuing uncertainty, banking executives have been squeezing efficiencies at the expense of growth. But the payments business is starting to focus on revenue growth — growth that can be achieved through the provision of innovative payment services at the ATM.

Here are four ways to improve customer interaction, loyalty and ultimately revenues:

  1. Customers start an ATM transaction using a keypad to enter their identification (e.g., account number, email address, phone number). This replaces the previous ID method that relied on the insertion of a card into the ATM card reader. And ultimately it draws customers with no card to the ATM channel and the ability to reduce card-related costs.
  2. Customers initiate an ATM transaction using a contactless payment token such as a contactless card, mobile phone or a key fob with the ATM contactless pad, improving the customer experience and paving the way to interaction with the mobile channel.
  3. Consumers stage transactions through their mobile devices and complete them at the ATM by using a QR code, ultimately replacing the ATM screen and key pad limitations with the promising flexibility of mobile applications.
  4.  Customers use the ATM channel as a  central point of remittance for person-to-person, business-to-person or person-to-small business mobile payments. While the person or business initiating the payment is an account holder at the bank, the recipient of those funds doesn’t need a bank account, which offers many possibilities to capture revenue from non-banked customers — or the opportunity to convert non-customers into stored value account or full demand deposit account customers.

Although these are not brand new concepts, they are a strong reminder that the ATM is alive and well, and is evolving to meet the needs of the world’s next generation of consumers.

To get a piece of the action, normalizing the way customers interact across all banking channels is crucial, and enabling the integration of the ATM with mobile technology is a must to continue to drive customer engagement.

The ATM is dead? No, thanks to an effective multi-channel solution, the ATM will live in its altered form for a very long time!

(Source: ATM Marketplace)

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April 16, 2014 6:02 am

digging

Value added services have been mainstream in Europe for a long time now, yet they’re slow to catch on in the U.S. Why is that? And why should American IADs consider adding them?

ATM Marketplace took these questions to Anthony Genovese, VP of consulting services at Compass Plus, a company that has worked for years to help European clients implement income-generating add-on services at the ATM.

Genovese offered his thoughts on the obstacles that confront U.S. IADs when it comes to justifying value added services — and the opportunities that emerge when those obstacles are addressed in a thoughtful, collaborative way.

What kind of interest are you seeing now in value-added services?

We’re still trying to figure out where it’s all going to go in North America. We’ve been doing this stuff forever elsewhere in the world … and we really aren’t seeing much of it at all in North America yet.

In North America it’s really about prepaid cards and about billpay services in addition to cash dispense. We’ve heard a little bit about donations and things like that, especially around different disasters that have occurred, but not a lot.

Why is that?

A lot is operational cost control, dealing with the regulatory things around EMV. The value-added services are really icing on the cake and I’m not sure whether the IADs really have spent the time to understand the value proposition. So they tend to go back to their traditional model, you know, “I make X number of cents every time somebody gets cash, and these are the types of things where I need to spend my money, so help me resolve that.”

I don’t think it’s helped that there’s so much going on in this space — NFC and mobile wallet — there’s all this confusion now and people are starting to think, “where will I put my money?”

If Im an IAD, where do I begin to decide what new services to add — and how to implement them?

We sit down, we talk about the types of things you want to do; we would facilitate that. We would, first of all, evaluate the gear you have on site to determine how much of that is reusable, how much would need to be refreshed.

Depending on the services you wanted to offer, we would determine how much of that is off the shelf or how much would need to be built or customized for you. And then we would tell you this is how long it’s going to take, how much it’s going to cost and this would be your responsibility to acquire these pieces to deliver the solution.

It’s the exact same thing you need to be doing in order to be EMV enabled. So it is part of that same conversation.

Speaking of EMV, deployers are already looking at major expenses for EMV and other upgrades. How can they justify spending more to enable value-added services?

pull quote

By the numbers I understand the argument … [I]t’s looking at different ways to generate money, different ways to differentiate your service and go out there with the view that you may need to invest a little bit here, but it is creating a new revenue model.

I think when you start looking at the cost of redeploying your fleet, you recognize that there are some big numbers there and it’s time to kind of look at your selection of these devices and what capabilities they’re going to give you.

And if I add those capabilities, whats the return?

It really depends on the location, but certainly if you look at some of the just plain kiosk providers that are going out there with a single service such as bill payment, that device justifies itself without even having cash dispensing capabilities.

So if you can put out a bare-bones vanilla device just to allow you to come up and do a payment, well, if you have a merchant location where it makes sense to also collect bill payments, why not put both services in that same real estate, that same spot and create additional revenue opportunity?

[As a consumer], if I’m able to go to your device and make that payment and you’re able to then offer me that same service across a bunch of different devices and maybe help me find those devices, maybe even with a locator on my mobile phone, there’s an advantage to that.

How do you see the future of value-added services unfolding for IADs?

If you have the right foundation, now you have this platform where you can do virtually anything, and you have these capabilities to drive the industry standard requirement to do things like Internet payments, or mobile payments or kiosks and ATMs. So you have all of these different channels, they really just become bolt-ons.

It’s really limitless when you talk about an electronic payment, and especially when you start bringing the channels together. That’s something that I don’t think a lot of IADs have really focused on, is maybe even using a mobile device to supplement some of the capabilities of their devices.

And when you get into value-added services, that’s just a natural extension. Especially if you have an app or some way that you can also then make contact and maybe even influence the behavior of that customer.

That customer then becomes your customer. And that gives you the ability to work with your merchants and bring those customers and merchants together.

(Source: ATM Marketplace)

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April 11, 2014 1:58 pm

478441071

If you’re going to stand tall among your competitors, you must first know their height. Then you must know how much taller you need to grow to exceed their height — and how to make that happen.

It’s a process called benchmarking. And in the increasingly global, increasingly competitive environment of the ATM industry, it’s a practice that can be highly beneficial — but that remains surprisingly underutilized.

In the foreword to the “ATM Benchmarking Study 2014 and Industry Report,” Mike Lee, CEO of the ATM Industry Association explained the basic purpose of benchmarking:

ATM benchmarking provides a bank or independent 
ATM deployer with a scorecard of its organizational performance measured against its competitors, nationally, regionally and globally. Benchmarking metrics highlight areas requiring improvement as well as current organizational strengths.

Xerox pioneered the science of benchmarking in the 1980s, Lee said. Benchmarking allowed the company to engage in what then-CEO David Kearnes described as “the continuous process of measuring products, services and successful in-house quality improvement process against the toughest competitors or those companies recognized as industry leaders.”

For their inaugural 2012 study, partners ATMIA and Value Partners gathered anonymous statistics and qualitative responses from 29 opt-in IADs and FIs, including some of the largest ATM operators globally. Data comprised eight categories:

  • general estate statistics;
  • cash management;
  • transaction management;
  • ATM performance monitoring;
  • estate management;
  • fraud, crime and dispute;
  • revenues; and
  • quality of services.

Insights from the survey and general conclusions are included in both reports, though the full findings of the study are available only to respondents.

Two-thirds of the original group returned for the 2014 study, which included 42 participants. Results from the second benchmarking study were unveiled at the ATMIA US 2014 conference and expo in Orlando, Fla.

With the 2012 study as a baseline, ATMIA and Value Partners were able to expand, update and build upon conclusions from the first study, creating an even richer and more detailed understanding of the industry in the second report.

In the video below, Francesco Burelli, a principal at Value Partners and lead author of the report, describes some surprising revelations of the study, which compared the performance of participating ATM deployers against their competitors at the regional, national and global level.

The general (non-confidential) findings are detailed in the full industry report, which is available free from Value Partners upon request.

(Source: ATM Marketplace)

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April 9, 2014 4:33 am

Alliance Event ATM, left view

Alliance Event ATM has partnered with AOneATM to bring ATM services to your events, venues, special occasions and functions! Alliance Event kicked off their venture by providing ATM services for the Italian Connection fundraiser in Greenville.

If you are considering an ATM placement for your next event or function, call John at (864) 940-0034 or AOneATM at (866) 769-7981 for more information.

 

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April 7, 2014 5:45 am

danger 150x200

There’s been a media din lately about Windows XP end of support — now less than a week away — and the risk it poses for XP-driven ATMs that will not be protected by continuing Microsoft security patches after April 8.

What has been lost in the noise is a present and growing danger that has nothing to do with operating system migration. It involves a type of cyber attack that begins with phishing emails to bank employees and culminates in the installation of malware that removes ATM withdrawal limits and allows thieves to execute fraudulent transactions on a grand scale.

Today the Federal Financial Institutions Examination Council issued a stark warning about the growing risk to financial institutions of these attacks and instructed FIs to take steps to prevent them.

In a statement, the FFIEC explained how the attacks, which the U.S. Secret Service calls “Unlimited Operations,” are carried out.

Details of the Unlimited Operations expoit are excerpted below. The full statement, available online, includes steps for risk mitigation.


Unlimited Operations are a category of ATM cash-out fraud where criminals are able to withdraw funds beyond the cash balance in customer accounts or beyond other control limits typically applied to ATM withdrawals.

Criminals perpetrate the fraud by initiating cyber-attacks to gain access to web-based ATM control panels, which enables them to withdraw customer funds from ATMs using stolen customer debit, prepaid, or ATM card account information. A recent Unlimited Operations attack netted over $40 million in fraud using only 12 debit card accounts.

Criminals may begin the attack by sending phishing emails to employees of financial institutions as a means to install malicious software (malware) onto the institution’s network. Once installed, criminals use the malware to monitor the institution’s network to determine how the institution accesses ATM control panels and obtain employee login credentials.

ffiec warningThese control panels, often web-based, manage the amount of money customers may withdraw within a set time frame, the geographic limitations of withdrawals, the types and frequency of fraud reports that its service provider sends to the financial institution, the designated employee that receives these reports, and other management functions related to card security and internal controls.

When criminals obtain this information, they may use an employee’s login credentials to gain access to the control panel and change the settings to permit greater or unlimited cash disbursements at ATM machines, and to change other fraud and security related controls.

Following an attack on an institution’s ATM control panels, criminals use fraudulent debit, prepaid, or ATM cards they create with account information and personal identification numbers stolen through separate attacks to withdraw funds from ATMs.

Card account information and PINs typically are stolen in a number of ways including through point-of-sale malware or skimming, ATM malware or skimming, or compromise of the issuer’s card operations.

The cash-out phase of the attack involves criminals organizing simultaneous withdrawals of large amounts of cash from multiple ATMs over a short time period, usually four hours to two days.

Criminals may conduct their operations during holidays and weekends to take advantage of increased cash levels in ATMs and limited monitoring by financial institutions during non-work hours.

The modus operandi is somewhat familiar, thanks to a highly publicized 2013 incident. In this exploit, a cybercrime organization hacked into credit card processor computer systems and eliminated the withdrawal limits on prepaid debit card accounts.

“Cashers” in 20 countries subsequently used counterfeit cards to make fraudulent ATM withdrawals “on a massive scale,” netting $45 million before the FBI shut down the operation. Cashers in New York withdrew $2.8 million in less than four hours.

In this notorious attack, cashers were still subject to ATM limits. It took hundreds or thousands of cards and more than 4,500 individual transactions to steal $45 million.

As today’s statement made clear, the removal of ATM withdrawal limits dramatically reduces the number of counterfeit cards and transactions and exponentially escalates the danger to FIs, whose ATMs can be emptied with as little as a single transaction. Which lead the FFIEC to issue the caution:

Unlimited Operations may cause financial institutions to incur large dollar losses. Therefore, the members expect financial institutions to take steps to address this threat by reviewing the adequacy of their controls over their information technology networks, card issuer authorization systems, systems that manage ATM parameters, and fraud detection and response processes.

(Source: ATM Marketplace)

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April 2, 2014 3:09 am

wauWindows CE Machines are Less Expensive, Less Vulnerable to Attack & Cost Less to Operate



It seems like just a few years ago that ATM manufacturers and the banking industry had to migrate to Microsoft’s 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 2014, 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 manufactures 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 not affected 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 and each have their respective benefits.  No debate that each has their 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 have new features like 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.  But this type of ATM wasn’t supposed to last?  It did. To this day, they require far fewer service calls than traditional banking ATMs.  Most average two services calls annually where a component may need to be repaired or replaced.  That is an incredible achievement.  Far less expensive for service needs.

But what do you give up?

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

Does it matter much?

Years ago it mattered greatly to the financial institutions that had large bases of cardholders because it allowed customers to make deposits.

However, deposit-taking never surpassed the demand for cash withdrawals.  Cash withdrawals are still the highest demanded service at an ATM.  Even with the sophistication and convenience of deposit automation/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 banking and mobile banking applications. Today, it is very simple to deposit checks with the use of 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.  Many choose to have a night deposit box adjacent to a drive-up ATM for the small percentage of account holders that need to make deposits.

Economically, this is a no-brainer. The cost of ownership compared to traditional banking ATM programs is night and day. Windows CE ATMs 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 virus/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/7/8 is used in many more devices than ATMs and is always being upgraded to defend against fraudulent attacks.  These upgrades occur multiple 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 compliant for the US market.

Think about the needs of your cardholders and how they will continue to bank in the future.  Less and less 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 diminishing.

However, account holders will always want access to cash and it doesn’t require an extremely expensive ATM to dispense funds.

Yes the “toy” ATMs have proven themselves. They continue to be the best investment a financial institution can make to offer convenience to their valued cardholders.

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 may be the smartest decision you make in your ATM program.

by: Mark Smith, VP of Financial Services Kahuna ATM Solutions

(Source: ATM ATOM)

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