Wincor Nixdorf commissioned IDC study: In 2017 banks worldwide will invest 16 billion USD in branch transformation and the new technologies it requires

International Management Seminar 2014

Paderborn, Germany, 2014-10-23— /EPR Retail News/ — According to a study carried out on behalf of Wincor Nixdorf by the American company International Data Corporation (IDC), a global leader in IT market research and consulting, in 2017 banks all over the world will invest some 16 billion U.S. dollars in branch transformation and the new technologies it requires. Jens Bohlen, member of the Board of Directors of Wincor Nixdorf AG with responsibility for the company’s global banking business, presented the study’s results at the company’s International Management Seminar, held from October 22 – 24 in Istanbul. He noted that the bank branch continues to be very valuable as a delivery channel, but it must transform itself. Key factors in the success of branch transformation projects, according to the study, are differentiation in branch type within the branch network, an improved customer experience, and the option of carrying out cash and other standard transactions quickly and easily.

“Worldwide demand for automation technology is rising. We want to support banks around the world through software in particular in implementing branch transformation projects, optimizing omnichannel sales and improving the customer experience,” said Wincor Nixdorf’s CEO Eckard Heidloff. It is Wincor Nixdorf’s goal to double its software sales over the medium term to some 600 million euros.

In his remarks, Heidloff also offered a report on the status of the ATM Security Association, which was founded on the basis of an initiative begun by Diebold and Wincor Nixdorf. The association’s goal is to create security standards for the self-service delivery channel, to develop countermeasures for known threats to its security, and to make them available around the world. The formal process of founding the association is now complete, and following a presentation by the founding members in London at the ATMIA Security Conference last week, 70 inquiries and applications for membership were received from banks, manufacturers and component suppliers. Feedback on the initiative was unanimously positive, according to Heidloff.

IDC study: integrating the branch in the digital world
The study maintains that the success or failure of a branch network is dependent on its acceptance by the customer. To ensure its success, not only do the branch, online and mobile channels need to offer perfect service individually, they must also be completely integrated into the digital world, which is where more and more customers spend their time and manage their banking business. This is an enormous challenge, but it also opens up great opportunities: experience shows that customer satisfaction increases when the branch infrastructure is improved.

“The results of the IDC study suggest that an optimally positioned branch network and the use of the latest technology can bring a 25% increase in customer contacts with a simultaneous gain in efficiency of around 30%,” says Bohlen. According to the study, consumers benefit from 24/7 service and banks profit from extensive process automation and thus lower costs.

In the process, innovative self-service technology serves as a bridge to other channels. Customizable screens and intuitive touch interfaces at self-service terminals, for example, ensure fast transactions. Another example is ATMs that can be operated via smart phone: the customer authorizes a withdrawal using a mobile app and receives cash at the ATM without the need for an ec or credit card.

The provision of a wide array of services and consulting even in mini branches or unstaffed self-service points is enabled through modern technologies such as video conference systems integrated in self-service terminals: at the touch of a button, the customer can communicate directly with a bank consultant who specializes in the topic of interest. This technology also enables extended self-service options such as opening an account. Video technology helps bridge distances, making it possible to offer consulting services in rural areas and ensure an extensive presence across all branch types.

Self-service with the human touch
Together with a British bank, Wincor Nixdorf has developed a concept for assisted self-service. The “assisted teller counter” automates a variety of standard transactions such as withdrawals and deposits of banknotes and coins, document printing, and check deposits. A barcode reader and a NFC reader are integrated to simplify the handling of transactions such as bill payment. The system features two large 18.5-inch touchscreens mounted at different heights to enable easier use by people with a wide variety of physical needs. Customers can request assistance simply by pressing a button on the device. Branch staff receive these requests via an iPad and can provide help immediately. “We are the first provider in the world to complete a large-scale installation of a solution like this one, which allows the bank to offer all its standard transactions on self-service systems with a high degree of customer orientation and efficiency,” says Bohlen.

Software ensures ease of operation at the ATM
Customer orientation is also the focus of two software projects presented by Hakan Özçubukcu, General Manager of Wincor Nixdorf Turkey. A joint team composed of both staff from the Turkish financial institution Halkbank and Wincor Nixdorf employees is currently working on a project to optimize the ATM user interface. One of the bank’s requirements is to enlarge the customer panel so that it is easier for older users to read. The bank is also implementing Wincor Nixdorf’s ProFlex software, which allows banks to customize the user interfaces and services of their self-service systems and thus free themselves from the download limitations imposed by their switch operators. One of the pleasant side effects of deploying ProFlex is that communication between the individual ATMs and the central computer is reduced, which in turn cuts the bank’s network costs. Garanti Bank also uses Proflex to integrate its more than 4000 ATMs from different manufacturers into the bank’s omni-channel architecture. “Our software makes it easy for the bank to implement new functions quickly across its entire ATM network,” explained Özçubukcu.

Wincor Nixdorf commissioned research explains how banks can benefit by outsourcing the management of their ATM networks to expert third-party provider

Paderborn, Germany, 2014-10-9— /EPR Retail News/ — The U.S. market research firm IDC has published a white paper entitled “Optimizing customer experience through innovative management of the ATM fleet” commissioned by Wincor Nixdorf explaining how banks can benefit operationally and financially by outsourcing the management of their ATM network to an expert third-party provider.

For banks, ATMs are an essential component of their self-service strategy – and have been so for nearly 50 years. Customers around the world have come to rely on them in banks, airports, retail stores and other highly frequented locations to provide a diverse and growing range of financial interactions and transactions. So, given that the value of ATMs has never been higher, banks can arguably question why they should even consider handing over the management of their ATM fleets to a third-party provider.

Market research firm IDC delivers multiple reasons for outsourcing this business in the white paper, “Optimizing customer experience through innovative management of the ATM fleet”.

In the paper, IDC notes that ATMs are often part of a complex and heterogeneous environment, consisting of diversified branch formats and a multiplicity of hardware and software. To reduce complexity and increase efficiency, banks need to create homogeneity, a process that ties up human and financial resources.

To attract customers to their branches, banks also need new formats featuring ATMs with enhanced and innovative functionalities and these, in turn, require ATM networks to be operated in fundamentally different ways. This is yet another pressing requirement that ties up resources.

Nor is technology standing still. ATMs continue to be enhanced, for instance, with self-healing and predictive maintenance functionalities. Banks must leverage these innovations to gain a competitive edge.

On top of all this is the growing demand for omnichannel services. These budding new services provide customers with a superior, immersive and seamless experience in the branch, at the ATM, on the computer or on the mobile phone. Interconnecting the stationary and online operations is a formidable task that requires a high level of expertise.

These are among the key reasons described in the IDC research on why banks should consider outsourcing their ATM fleets to professional third-party suppliers such as Wincor Nixdorf. Banks, the market researcher argues, can free up human and financial resources to focus on their core banking tasks and also have the latest technology by handing over the operation of their self-service terminals to trusted partners. And partnering, the firm argues, doesn’t mean financial institutions will disconnect with their customers, but rather will maximize performance and the customer experience.

In the white paper, IDC also provides answers to four broader questions relating to ATM management: What role does the ATM play in today’s retail banking business strategy? Why does the branch, and specifically the ATM channel, remain important for banks? How can retail banks use ATM management to support their business strategies? What does the future hold in store for the ATM network?

The IDC white paper can be downloaded at: