NCR CASE STUDY:ABSA, South Africa

With more than 850 branches, a network of over 8,200

ATMs and total assets exceeding $100 billion, the Absa Group

Limited operates the largest retail bank in South Africa. As

such, it offers a complete range of retail, business, corporate

and investment banking, insurance and wealth management

products and services.

The Absa Group’s strategy is firmly customer-centered, as it

continually strives to empower its customers by enhancing

access to all its financial services. With an ever-increasing

customer base totaling 12.1 million, it wishes to exceed

these customers’ needs in every way.

In 2005, world-renowned Barclays Bank PLC acquired a

majority stake in Absa as part of its drive to expand its global

product and international retail and commercial banking

businesses in markets outside the UK.

One of the key objectives of Absa Bank was to identify

opportunities to grow its value by accessing new markets

across multiple delivery channels.

With customers firmly at the forefront of this strategy,

maximizing both the availability and the breadth of the

services it offers was crucial. Absa believes that the ATM

is fundamental to help it achieve this.

Prior to its decision to upgrade, over 80% of Absa’s ATM

network was more than ten years old, compromising the

functionality, convenience and choice that the bank was

delivering to its customers. A prime example of this was the

use of envelopes to deposit cash and checks, which, due to the

back-office processing required, delayed the time customers

could gain access to deposited cash by up to 48 hours.

The negative effect that its aging network was having on

the customer experience was, in turn, seriously undermining

customer loyalty as well as damaging its brand image and its

ability to be seen as South Africa’s leading innovative bank.

Absa knew this had to change, and quickly, as customers

continued to demand more than just cash from the ATM

channel. To deliver the services their customers needed,

wherever and whenever they needed them, Absa was looking

to maximize its offering at the ATM and migrate as many

transactions and services as possible to that channel.

By upgrading, Absa also sought:

• to reduce the length of queues in-branch to make banking

more convenient and user-friendly

• to maximize staff resources by migrating high-volume,

low-value transactions to self-service terminals

• to update its ATM software application to enable new

transactions and services across its network

The customer The challenge

Key HighlightsMarket:

Retail and commercial banking

Challenge:

To maximize the services that Absa offers its

customers through the ATM channel (primarily to

include check/cash deposit as well as multiple cardless

transactions) to give more customers the choice and

convenience of the services they want, whenever and

wherever they want them

Solution:

NCR SelfServ™ Intelligent Deposit ATMs, to deliver

the maximum number of transactions to customers.

NCR APTRA™ Activate software, the ultimate platform

to seamlessly link and effortlessly integrate Absa’s

multi-channel network into its existing infrastructure as

well as to enable innovative cardless services

Results:

Following implementation, there was a significant shift

in customer behavior. Cash deposits across

Absa’s ATM network have increased, year on year,

by an impressive 140%

Absa had extensive knowledge of NCR’s global expertise

and experience in self-service and its reputation as the

market-leader in innovative solutions across multiple delivery

channels.

As a result, Absa chose to upgrade its ATM network over a

three-year period. The upgrade incorporated the replacement

of envelope deposit ATMs with NCR SelfServ Intelligent

Deposit ATMs. This would offer customers and non-customers

advanced, deposit-based transactions including check deposit,

loan application and bill payments.

Without envelopes being involved in deposit transactions,

cash deposits are credited in real-time, and funds are made

available to a customer’s account instantaneously.

Other key factors that comprehensively convinced Absa to

partner with NCR were the intuitive user interface of the NCR

SelfServ ATMs as well as their ability to deliver outstanding

reliability and energy efficiency.

Absa also chose NCR APTRA Activate, the world’s most

advanced self-service ATM software application. It seamlessly

links the bank’s ATM network while delivering market-leading

levels of availability, functionality and, most importantly,

security—allowing real-time cash verification and radically

reducing the acceptance of counterfeit or dye-stained notes.

APTRA Activate enables the inclusion of additional

transactions and services utilizing cardless technology,

such as: low-value payments, balance inquiries,

mini-statements, change PIN requests, fund transfers, cash

deposit acknowledgment and expired cards. It also allows

customers to receive loans, purchase airtime and make

CashSend money transfer payments and redemption to any

cell phone number from Absa ATMs.

Absa desired to go a step further and offer their customers

and those of other banks the ability to pay bills across their

ATM network. Powered by APTRA Activate, the innovative

solution, called Scan ’n’ Pay, lets ATM users simply and quickly

pay bills by scanning bar-coded invoices from pre-registered

service providers (such as telecom and utility companies).

Not only is this service exceptionally convenient for customers

but it also provides the bank with the opportunity to increase

revenues from transactions, reduce its operational costs

and maximize staff resources in-branch through transaction

migration.

“NCR has helped Absa Bank realize the true potential of our

ATM network in delivering the most innovative transactions

and services to our customers. From transaction volume

increases to the positive reactions from customers, the success

of our upgrade has been outstanding in every way. It has also

confirmed to us that, as Absa expands, the ATM channel will

be key to our growth strategy.”

Allen Mahadeo, Head of Self-Service Channels, Absa Bank

The results have been both impressive and enlightening,

with Absa experiencing a positive change in customer

behavior thanks to the deployment of NCR SelfServ

Intelligent Deposit ATMs.

Transaction volume growth on the NCR SelfServ Intelligent

Deposit ATMs has been impressive to say the least, with an

incredible 140% increase. This has been achieved despite a

small amount of initial hesitancy from customers, which was

quickly overturned thanks to an in-branch education program

as well as enthusiasm spreading by word of mouth amongst

customers once they had experienced the new technology

and services.

This success can be put down to three primary factors: the

choice, ease of use and convenience that NCR Intelligent

Deposit ATMs are offering customers. For example, customers

previously depositing funds using envelopes might well have

had to wait up to 48 hours to gain access to that money. Now

however, this transaction can be completed and funds made

instantly available, 24 hours a day, 365 days a year, simply and

securely.

Usage of Absa’s 700 SelfServ ATMs with bunch note acceptors

has increased significantly, with an average of 250,000 people

taking advantage of this cash deposit service every single

month. Since deploying new transactions like the Scan ‘n’

Pay functionality, Absa has experienced an increase in new

customers with growth in the number of new individual

accounts and corporate accounts.

The solution

The solution benefits

WHY NCR?

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to change specifications without prior notice. All features, functions and operations described herein may not be marketed by

NCR in all parts of the world. Consult your NCR representative or NCR office for the latest information. NCR RealPOS is either

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names appearing in this document are trademarks, registered trademarks or service marks of their respective holders.

© 2010 NCR Corporation Patents Pending EB10622-0310

The customer’s reaction to the Scan ‘n’ Pay functionality

has been very positive, and transaction volumes are steadily

increasing, with a 38% month-on-month increase in August

2012. Allen Mahadeo, Absa’s Head of Self-Service Channels,

describes how Scan ‘n’ Pay has enhanced the customer

experience: “Customers are delighted as the convenience of

this transaction allows banked, un-banked and non-Absa

customers alike the flexibility to make payments for goods

and services 24x7x365 when it suits them and without having

to stand in a queue. The transaction flow is designed very

simply, so customers find it easy to navigate the transaction

for successful payments on a regular basis.”

The wealth of other new and existing services has also

resulted in the migration of transactions away from branch

tellers. This is reducing wait times in-branch and helping Absa

maximize its resources. Branch staff are now focusing on the

customer/bank relationship, and with it, maximizing higher

value, lead-generation opportunities, perfectly reflecting

Absa’s strategy to put the customer first and foremost.

The inclusion of APTRA Activate alongside NCR Intelligent

Deposit ATMs has also resulted in positive advancements

across two other key areas: Absa’s brand image and its

long-term network objectives.

The success of the implementation program has confirmed

to the bank that, as customers continue to want, and accept,

more complex transactions and services at the ATM, so it

must continually rise to the challenge and meet these needs.

It envisages that Scan ‘n’ Pay will become standard across its

entire network in time.

Lastly, the Scan ‘n’ Pay services now being experienced by

customers have set Absa apart from most of its competitors—

ultimately strengthening Absa’s position as South Africa’s

leading innovative retail bank, in touch with its customers and

delivering the choice and convenience they demand.

With over 125 years of retail experience, NCR is a

leading global provider of assisted- and self-service

solutions. We help our clients around the world

improve their customer interactions, implement change

quickly and proactively, and transform their businesses

to become leaders and change agents. We can help

you, too.