The “ATM Software 2016” research by RBR examines the main trends in ATM software in UK, continental Europe and the world.
The main research findings
- The UK trails its continental European peers when it comes to embracing ATM software supplied by companies other than the ATM’s manufacturer, otherwise known as multivendor software.
- According to research by RBR, a banking research company, the penetration rate of multivendor software applications in UK was just 45% (about 25,500 machines) in 2015, far behind the rest of Western Europe where the figure is 67%, and only slightly ahead of the rest of the world where the figure is 40%.
- The deployment of multivendor software is set to rise in 2020 to 52% worldwide, 80% in Europe, but only 60% in the UK.
- Multivendor software applications allow banks to increase integration between ATM and other channels (mobile, online and branch), in order to offer customers services in an increasingly personalised and efficient way.
- The study also found that banks all over the world are developing new ways of exploiting the potential of ATMs to improve the customer experience and reduce operating costs.
“ATM Software 2016”, a report by RBR, a banking consultancy, analyses the opinions of some of the most important ATM deployers (banks, service centres and IADs) in the world. From the research, where 74 organisations in 40 countries, with 486,000 ATMs, (33 of which already deploy a multivendor ATM software and 44 that have not yet done so) were interviewed, it’s clear that the use of independent, non-manufacturer ATM software forms the basis of many innovative ATM software projects .
The primary objective for ATM deployers is to increase the range of functionalities available on ATMs, by integrating it with the other channels such as mobile, online and branch, whilst at the same time enhancing the level of customer personalisation, improving customer experience, and cutting operational costs.
In addition, deployers believe that separating hardware and software purchases can reduce ATM hardware prices and those related to the testing and development of new functionalities on ATMs provided by different vendors.
Banks interviewed by RBR that are already using independent ATM software have found the implementation of innovative projects significantly easier. Projects included introducing alternative forms of customer interaction with the ATM, including authentication via NFC/QR Code or biometric authentication (where approved by local privacy laws); the use of contactless and pre-set regular transactions via mobile or internet banking channels; the customisation of the ATM interface, customised note denominations for withdrawals in an omni-channel setting (mobile, online and branch); assisted self-service projects which require interaction with the teller platform and video systems, as well as new hardware devices for staff located in branch, such as a tablet .
The improvement of customer experience on the ATM channel is essential
From the interviews with ATM deployers that are already using multivendor software, it’s clear that improving customer experience means enabling more personalised transactions, with the possibility to pre-set fast withdrawals from a smartphone or to make more complex payments using data directly from the online banking platform.. This could take the form of offering customers their preferred note denominations for withdrawals or the ability to choose the type of transaction receipts (paper, SMS or e-mail), and incorporating interactive ATM locator services, via mobile app, not only in order to find the nearest ATM but also to receive additional information (availability, functionality and so on), all of which have been successfully rolled out in other markets.
The research also shows that accountability and compatibility of non-vendor-native software with existing platforms is the largest hurdle for non-users of multivendor software. However, this ignores the possibility of reducing ATM hardware prices, together with the opportunity to better integrate the different channels and functions across ATM fleets, which is the most highly rated driver in favour of separating ATM hardware and software purchases.
Vincenzo Fiore, CEO of ATM Software Company Auriga commented on the research: “The trends evident in the report show that the future will be characterized by the integration of different channels and by an increased number of self-service functionalities which are more and more personalised. The key element that will allow this trend is the multivendor software, which allows banks to implement innovative ATM software projects”.
Fiore continued, “With a 12% market share in Western Europe in the ATM multivendor application sector and as a developer of innovative solutions which easily enable a greater range of transaction options, Auriga leads in creating innovative projects which are focused on customers, their needs and their profiles, independent of the channel used to access to bank services (ATM, internet or mobile banking)”.
Commenting on the findings, Mark Aldred, Head of UK Sales for Auriga, said: “The multivendor approach is increasingly being recognised by banks as the best way of delivering the services customers are demanding. Auriga’s unique software architecture, and as truly vendor-independent company, is best suited to adapting and meeting customer’s personal needs and preferences.