ATMIA Madrid The Future of the ATM and Branch in the digital economy? Are they relevant?

Transcription

1 ATMIA Madrid 2018 The Future of the ATM and Branch in the digital economy? Are they relevant? Neill Harris Global Product Marketing Director NCR Financial Services

2 Changing consumer behavior and technology is impacting our markets and customers 90 % cars connected by B smarthome industry by M wearable devices by B mobile connected devices by 2020

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4 Election of Pope Benedict XVI April 2005

5 Election of Pope Francis March 2013 Technology has become part of the experience

6 Utah Valley University Mobile is all pervasive Are you where your customers are?

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8 We now live in an application economy Only 6% of users were very active Use of Apple Pay, Google Pay and Samsung Pay increased five points to 34% in Q1/18 42% of mobile payment users would not recommend the service (up from 31% last year)

9 Who is more likely to call their bank contact center? a) The plugged-in millennial in Brooklyn, Bangkok, Sydney, London b) The retiree fresh off the tennis court at The Villages in Florida?

10 Channel convergence - Digital and physical 1. Bank more than other groups 2. Are Omni-channel consumers 3. Use ATMs more than any other group 0.5 Phone USA - Average number of monthly banking interactions by channel 0.3 Phone 0.2 Phone Note: Mobile includes apps and browsing on smartphones and tablets, online refers to desktop and laptops Source: Bain & Company The Bank Branch and Call Center Traffic Jam 2016

11 The Question is Are you where your customers are? As payments evolve and experiences move into a blended digital & physical More interactions go digital, how do you continue to engage?

12 The consumer journey is dynamic & changing Connecting the ABCD dots to create a frictionless, digital experience Virtual Digital Call Center ATM Branch Physical

13 ATMIA NextGen ATM Blueprint Architecting the future today The ATM network has grown increasingly complex. and it s our job to create meaningful change that makes ATM technology easier to own and operate, and more supportive of the digital-first consumer. SVP Frank Gauld NCR Keeping the ATM and Branch relevant Meeting the expectations of a digital first consumer Lowering the cost to serve through Simplification, Standardization and Rationalization NCR is working in Partnership with ATMIA to connect the dots

14 ATMIA NextGen ATM Blueprint Architecting the future today Embrace Cloud First Technologies Enterprise Enabled, HTML5, JavaScript and App Services. Migrating change to the Cloud to reducing the complexity and operational costs of the ATM. An App Model that allows Financial Institutions s to differentiate the Consumer Experience. Rapid design and development of Apps bringing innovation in ATM Transactions and Services. Simplified and standardized practices and procedures. Improve Profitability and reduce operating and maintenance costs. Enabling Financial Institutions to provide consistent digital first experiences. Allowing consumers to connect with Financial Institutions when and where they want to bank. CONNECTED DEPLOYABLE FLEXIBLE DIGITAL FIRST EXPERIENCES

15 ATMIA NextGen ATM Blueprint Architecting the future today NCR ACTIVATE ENTERPRISE Embrace Cloud First Technologies Enterprise Enabled, HTML5, JavaScript and App Services. Rapid design and development of Apps bringing innovation in ATM Transactions and Services Simplified and standardized practices and procedures Enabling Financial Institutions to provide consistent digital first experiences

16 Globally the ATM market is embracing more advanced functionality ATM shipment forecasts ATM Multi-function (excl: recycling) 100% 90% 3,015 4,228 6,076 7,728 ATM Assisted Service CAGR +37% ATM Cash Recycling CAGR +6.1% 41% 80% 70% 60% 50% 117, , , ,228 29,726 28,087 25,918 23,416 48% 40% 30% 20% 181, , , ,120 52% CD ISO CD Financial 59% 10% 0% 36,025 35,193 35,719 35, Cash Dispense ISO Cash Dispense Fin Multi-Function Cash Recycling Branch Assisted Services

17 Branch/in person Telphone Online Mobile Other Financial product acquisition Credit card Loan 51.8% 57.0% 14.4% 15.6% 11.7% 16.6% 8.3% 6.8% 6.4% Everyday banking is digital but product acquisition remains dominated by the branch Mortgage Savings acc 68.2% 72.2% 10.5% 11.1% 3.2% 4.0% 13.7% 5.2% 5.3% Current acc 64.2% 6.1% 17.1% 7.0% 7.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Channel of acqusition across Asia, 2018 Source: GlobalData Banking & Payments surveys

18 BUSINESS VALUE Evolution of the branch digital zone Remote Assist Local Assist Multi-Service - Self or Assisted Local assist Monitor, assist, engage Remote assist Consumer convenience, lower cost, innovative purpose-built branch formats When business rules require or consumer requests Add l SS Recycle Dep Auto Envelope Multi-Function Recycle & Add l Tx Recycling Cash replenishment Additional Self-service Tx Teller migration, lower on-us cost, consumer convenience Deposit Teller migration, consumer convenience CD Teller CONSUMER VALUE Single-Function - Cash Dispense Reduce teller cash withdrawals, consumer convenience 21

19 Meeting changing needs The Branch of the Future Any location Full Account Services Merchant Services Counter Services NCR SmartBranch - ATM as A Branch

20 SmartBranch - ATM As a Branch Highly configurable and adaptable form factors Anywhere deployments (Off and On premise) Offer more services and transactions

21 Top 10 Retail Banking Trends and Predictions for 2018 Over 100 Global FS leaders - Enhance the digital experience and create a frictionless consumer journey Source: The Financial Brand and Owner/Publisher of the Digital Banking Report

22 Our strategy is aligned with your strategic priorities ACCELERATE DIGITAL TRANSFORM THE BRANCH CREATE CONNECTED EXPERIENCES BUILD A SCALABLE, OPEN PLATFORM LEVERAGE DATA & ANALYTICS Pioneer Federal Credit Union ITM 25 and Digital Banking 45% increase in Remote deposit capture transactions Bank Audi ITM Branch Transformation 90% of teller transactions migrated ANZ - Mobile Tap & Go Digital & Physical convergence Up to 50% faster cash withdrawals Top 10 US bank Replatforming of legacy infrastructure into payments hub Tulsa Federal - Digital Banking MX Money Manager 300% increase in balance transfers.

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24 Thank You Neill Harris Product Marketing Director