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Special Edition - Seminar Highlights
1. OVERVIEW
Seminar Kickoff, Guest Speakers, and Panelists
On the 14th of November the 2013 ATM and Branch Automation Market Study and
Seminar by Payments Consulting Network (PCN) was hosted at Commonwealth Bank of
Australia, Sydney with 80 key industry stakeholders in attendance from both Australia and
overseas. The Seminar covered key findings from the 2013 Market Study, sponsored by
Wincor Nixdorf. The Market Study is the third for the Australian market following studies
conducted in 2008 and 2010.
The 2013 Seminar examined the challenges and opportunities for the ATM and Branch
Automation sectors. From Ross Dawson’s keynote address on “Trends and Creating
Business Value for the Future” to the closing panel discussion “Independent ATM
Deployment - The Changing Landscape”, a cross-section of views, opinions and ideas
were covered. See the full Programme here .
Guest Speakers & Panelists
With insights being shared by expert national and international speakers it was an
event not to be missed. Speakers included:
Peter Blackett, General Manager - Asia, Banktech
Jens Bohlen, EVP, Banking & Board of Directors, Wincor Nixdorf AG
Ross Dawson, Founding Chairman, Future Exploration Network
Stephanie Coleman, Manager Self Service, Digital Banking & Distribution,
BOQ
Naina D’Souza, Head of Channel Integration & Experience, CUA
Peter Frielick, ATM & Self Serve Consultant, Westpac
Yogiono Hendiarto, Finance & Operations Director, Bank Muamalat
Indonesia
Sharon Lu, Associate, Research Director, Payments Consulting Network
Mangala Martinus, Managing Director, Payments Consulting Network
Gavin Napier, Head of ATMs, Commonwealth Bank
George Nearchou, Associate, Payments Consulting Network
Tyron Niddrie, General Manager, Network Development, Commonwealth
Bank
Faisal Omar, Associate, Payments Consulting Network
Dr Brad Pragnell, Head of Industry Policy, APCA
Peter Tilton, Head of International and Express Banking, ANZ
Lee Whitney, Vice President, Retail Business, First Data
Tim Wildash, Chief Executive Officer, Next Payments
Jude Xavier, Senior Manager, ATM Centre for Excellence, Westpac
The Seminar included a number of innovation themes including:
ATM and Branch Automation Trends and Industry Forecasts
New Payments Platform (NPP), Contactless and Mobile – ATM Channel Implications
Spotlight on the Westpac Branch Transformation Strategy
Credit Union Australia's New Branch Experience
International Perspectives
The program for the day included three panel discussions covering hot topics such as the
impact of new branch transformation strategies and how the industry is evolving to cope
with the challenges and opportunities of new payment products and channels.
The Seminar finished up with a panel discussion on the changing landscape for
Independent ATM Deployment, which highlighted the threat of product innovations and
regulatory changes.
Attendees at the Seminar event included:
ANZ Bank
Bank Muamalat Indonesia
Banktech
Commonwealth Bank
Cuscal
Diebold
First Data
Glory Global Solutions
Integrated Technology
Solutions
Australian Payments Clearing
Association
Bank of Queensland
Bendigo and Adelaide Bank
Credit Union Australia
DC Payments
FEXCO
Future Exploration Network
Greater Building Society
KAL
Kiwibank
National Australia Bank
Newcastle Permanent
NH Equipment Australia
SprintQuip
Westpac
Wincor Nixdorf, Germany
Microelectronic Solutions
NCR
Next Payments
Phoenix-Interactive
Suncorp Bank
Wincor Nixdorf, Australia
Wincor Nixdorf, Singapore
2. STATISTICS
ATM and Branch Automation Trends and Forecasts
Kicking off proceedings, Mangala
Martinus, Managing Director at Payments
Consulting Network presented a summary
overview of draft findings and analysis
from the upcoming "2013 ATM and
Branch Automation Market Study”.
This was followed up later in day with a
more detailed presentation from
Research Director Sharon Lu.
According to participant feedback 21% of the combined 2,603 branches covered by the
study will be transformed with self service automation technology within the next 3 years.
The majority of the larger financial institutions have already deployed intelligent deposit
ATMs and this rollout is continuing. However the results demonstrate a broader focus on
overall branch transformation initiatives.
Branch automation devices are on the rise with some Financial Institutions now looking at
cash recycling ATMs and assisted self-service devices over the next 12 months.
According to the study projections, the aggressive rollout of advanced function ATMs will
translate to a 55.5% CAGR between 2013 to 2018. Automated Teller Devices are also
expect to have a steady growth of 14.5% CAGR with Coin Deposit & Exchange Devices
rising at 18.8% CAGR over the same period.
Later in the afternoon, Sharon Lu, Associate, Research Director, Payments Consulting Network presented more detailed insights with “ATM Market Study Trends and Industry Forecasts”.
Overall that the Australian market is
reaching maturity, with growth plateauing
at 3.2% CAGR.
While growth in standard ATMs deployments is expected to fall, this will be offset by
growth in more sophisticated devices such as intelligent deposit and cash recycling
ATMs. Other key statistics include;
Domestic withdrawals are considered the core function of the ATM machine by 70%
of the participants. However, depository functions are also a strong focus for the
next 3 years.
Participants remain vigilant about fraud and ATM security. Despite a decrease in
incidences, losses per incident have increased x5.5 from $1,878 in 2010 to
$10,347 in 2013.
Average Monthly Transactions per ATM will see a steady decline with -1.6% CAGR
from 2014 to 2018. However average device profitability is expected to stay above
breakeven.
According to the results of the previous Market Study in 2010, ATM deployers across all
categories considered the ATM channel as a profit centre. However, feedback from
respondents in 2013 show it is now overwhelmingly considered a cost center and an
important customer service channel.
2013 ATM and Branch Automation Market Study
The final 2013 Market Study report is scheduled to
be released in January 2013 and will provide in-depth
analysis of trends, economics and emerging strategies
in the rapidly changing Australian ATM market.
Following the success of the 2008 and 2010 studies the
scope has been expanded to include branch
automation and the importance of intelligent deposit
ATMs, teller cash recyclers and self-service devices in
transformation strategies.
The 2013 report will include over 200 pages of in-depth analysis and more than 200
charts. All analysis and charts in the report are provided both at an industry level and
broken down into four deployer categories including Large Banks, Other Banks,
Independent Deployers and Building Societies and Credit Unions.
For more information about the report, click here .
2013 ATM and Branch Automation Market Study Participants
Large Banks: ANZ Bank, Commonwealth Bank (Seminar Host), NAB, WestpacGroup (including St George, Bank of Melbourne, and Bank SA).Other Banks: Suncorp, Bendigo & Adelaide Bank, Bank of QueenslandBuilding Societies and Credit Unions: CUSCAL, Greater, Newcastle PermanentIndependent Deployers: Banktech, Cashcard, DC Payments, Next Payments
3. INNOVATION
Contactless, Mobile, and Faster Payments
On the theme of the proposed "New
Payments Platform (NPP), Contactless
and Mobile – What They Mean for the
ATM Channel", Dr Brad Pragnell Head of
Industry Policy, Australian Payments
Clearing Association (APCA) discussed
the potential implications of a New
Payments Platform Roadmap for the
Australian market.
The NPP, which is being planned for implementation in the Australian market in 2016, will
require all ADIs (Australian Deposit-Taking Institutions) to connect to one central platform
that will be designed to make the payment process faster. This core infrastructure project
is expected to enable new innovations in payments that are currently coming into focus.
Faisal Omar, Associate at Payments Consulting Network, further presented on the topic
of “How Mobile Payments and Contactless will Revolutionise the use of Cash for
Payments”. The presentation provided insights on the evolution of banking services from
ATMs to Internet and then Mobile. The following key Mobile Payment trends were noted;
Biometric payments
Evolution of POS to POP (Point Of Presence)
Location commerce
Emergence of new payment currencies
Increased government regulations and control
New ‘mobile’ form factors
Real-time and converged payments
The topic concluded with a panel discussion, facilitated by Payments Consulting Network
Associate, George Nearchou on “The potential impact of these changes on the ATM
channel over the next 2-3 Years”, which was considered one of the seminar highlights.
4. CASE STUDY
The New Branch Experience at Credit Union Australia
During the morning session, Naina D’Souza, Head of Channel Integration and Experience,
Credit Union Australia (CUA) provided an overview of their “New Branch Experience”
project. Naina discussed the strategy and challenges in designing a new branch of the
future, including insights into how they used customer feedback, staff feedback and
observation of changing customer behaviour to inform the design process.
Naina explained: “Our focus has been on the seamless integration of a relaxed, organic,
warm and inviting environment, with the buzz and convenience of leading digital
technology for our customers to explore opportunities and transact.”
Source: w w w .behance.net
Based on the findings from their flagship concept branch, future CUA branch designs will
focus on incorporating three key aspects:
Channel integration: Creating a seamless customer journey supported by
appropriate internal processes and systems
Evolving channels: Social; Contact centre; Mobile
People: Customer expectations & needs; Employee engagement & development.
For further reading about this project try Behance or The Financial Brand.
5. CASE STUDY
Westpac Branch Transformation Strategy
Jude Xavier, Senior Manager at ATM
Centre for Excellent, Westpac in his
presentation “Simplifying Through Self
Serve” presented an innovative branch
design complimented by new technology
in response to changing customer needs.
The presentation kicked of with a
screening of the banks "new night-time
economy" television commercial.
Jude stressed that customer banking needs are changing. The branch environment is
fast becoming less about transactions and more about interactions.
The presentation also covered the broader role of new Self Serve machines in delivering
opportunities and achieving new branch objectives including reduction of noise,
simplifying branches, improving the customer experience, and optimising the use of
available branch footprints to provide 24/7 banking.
The key drivers for the branch transformation strategy include;
Co-ordination from all channels, products and staff
24/7 availability and real-time value of funds
Customer confidence
System redundancy
The presentation highlighted that there was a shift from traditional paper marketing to
digital, and the importance of making significant investments in training branch staff in
both technical elements as well as new customer engagement behaviors.
Payments Innovation Daily recently covered a Global Branch Showcase including
branch concepts from Westpac and Commonwealth Bank. The NAB Smart Store design
and the ASB Innovation Lab have also been featured in past issues.
For further information about the 2013 ATM and Branch Automation Market Study
or the Seminar contact [email protected].
Industry Watch
Keep your finger on the pulse - bringing you
payments related news, announcements,
launches and more.
SECURITY & FRAUD
Enterprise News - Experts says ATM thefts like
the one in Middleboro rare – “Despite a growing
trend to skip the bank in favor of an ATM, experts
say robberies at the automated tellers are rare.”
ATMMarketplace - Strategies for securing ATMs
– “Operators around the globe are turning to
EMV to increase security. The United States,
however, remains primarily dependent on mag-
stripe cards, leaving deployers vulnerable”
ATMs
PC Tech Magazine – MTN Uganda launches
another Mobile Money ATM cash out service in
partnership with Interswitch – “MTN Mobile
Money customers just generate a four digit TIN
by dialling *165# from their mobile phone which
can then be used at any Interswitch ATM across
Uganda on a 24/7 basis to access money.”
The Swazi Observer - ‘Use ATMs with caution’ –
"fraudsters could use small hand-held card
reading devices to capture the electronic data
encoded on a card.”
Business Standard - Card swipe machines may
raise banks' costs – “For banks, compliance
with the Reserve Bank of India (RBI)’s directive
to install new card-swipe machines (with
biometric scanners to enable Aadhaar
authentication) would come at a cost”
ATM marketplace.com - GRG tackles TCO at
ICCOS Asia – “Case studies from Turkey and
China have shown that cash management-
related expenses can have 20 times greater
impact than the price of the equipment it is
dispensed from…GRG showcased solutions for
banknote sorting and recycling”
Banking Business Review - Andhra Bank opens
90 Nextgen retail branches across India – “The
Nextgen retail branches are equipped with fully
automatic machines in the front desk, including
self-service passbook printers and ATM, which
also offer routine business transactions 24X7.”
Economic Times - India’s top eight retail chains
report rising card payments in big cities –
“Future Group, Shoppers Stop, Spencer's, Wills
Lifestyle, John Players, Woodland, Next and The
Mobile Store - said credit and debit card
payments have consistently exceeded cash this
year in the biggest cities”
HispanicBusiness.com - Diamond Bank Sees
Growth with CR2's BankWorld Multichannel
Platform – “across their ATM, internet and
mobile banking channels including banking
services unique in Nigeria."
Wall Street Journal - Bank of China Selects NCR
to Support New ATM Software Application
Development – “The project will be conducted in
three phases to enable new features and
capabilities such as chip-based, automatic top-
up, transaction short messaging, new reporting
format, as well as converging with new payment
channels such as point-of-sale, mobile and
internet terminals.”
NCR - NCR APTRA Interactive Teller - "enables
banks to offer their customers the benefits of
both self-service video banking and the branch
experience in one solution, closing the “intimacy
gap.”
DigitalTrends - Banks start to roll out ATMs with
human teller video chat option – “Played over the
ATM screen, bank customers can speak to a
teller if they need to carry out advanced
transactions like cashing a check or making a
withdrawal in specific denominations. In
addition, customers can withdraw money from
their account if they left home without their ATM
card or simply lost it.”
BankTech - Bank of America Employee Petitions
Against Video ATM’s – “A Bank of America
spokesperson told ABC News that there is no
difference in pay between the bank’s in-branch
tellers and call center tellers, and said the bank
has no plans of cutting in-branch teller jobs.The
bank has now deployed its video ATM’s that
allow customers to communicate with a remote
teller in 61 locations across the country”
Selfserviceworld - NCR APTRA debuts in
Africa – “…NCR Corp., in collaboration with
Bytes Managed Solutions, its exclusive
distributor in South Africa and other selected
countries, launched NCR APTRA Interactive
Nigerian Bulletin - National Identity card to
become ATM, Travel Card – "Nigerians can use
the new national identity card as an Automated
Teller Machine (ATM) card anywhere there is
MasterCard logo in the world”
Proactiveinvestor - Transaction Solutions
International pushing for additional contracts in
Indian ATM market – "received a first tranche of
funds from an Indian-focused private equity
group, that was first announced in May
2013.This is part of a $22 million investment in
to TSI India to leverage growth in ATM
deployment in India.”
The Conversation - Are we moving towards a
cashless society - or simply less cash? – “The
most common way that individual Australians
access cash is through the Automated Teller
Machine (ATM) network, of which there were just
under 35,000 machines in Australia in June
2013. These accounted for 60% of the total
value of cash withdrawals in 2012/13”
Teller ... enables services that cannot be
conducted at a traditional ATM or other self-
service device”
Selfserviceworld - Saudi bank orders nearly 600
Diebold custom kiosks, advanced ATMs – “In
addition to 560 Opteva ATMs, the bank has
purchased customized kiosks enabled for
checkbook and debit card issuance, online
banking, statement printing and new account
opening.”
INNOVATION
ATMmarketplace - The ATM industry's mobile-
digital choice: Innovate or die – “… the growing
number of cardless transactions at ATMs and
how important this dynamic will be in bringing
the unbanked into the payments industry; and
competition between banks and non-bank
providers of financial services ... competition is
so ruthless, so global and so huge in scale, that
it's innovate or die."
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