A British subsidiary of International Business Machines Corp. is planning to launch an automated teller machine processing service to financial institutions there in 1994.

The unit, IBM Information Solutions Ltd., is building a facility in Greencock, Scotland, to offer transaction-processing and network-monitoring services to banks seeking to out-source their ATM processing functions. The center should be operational early next year, IBM officials said. Most British institutions still do their own ATM processing.

The new facility "gives us an important foothold in the ATM outsourcing market, which is potentially worth more than $294 million [per year] and opens opportunities in the wider payment services market" in Great Britain, said Martin Hess, a marketing manager at IBM.

The Greencock data center is being equipped with software from SDM International Inc., Raleigh, N.C., that enables technicians to anticipate when a particular ATM requires maintenance or cash replenishment.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.