The time it takes to convert different brands of ATMs in a bank network to consistent operations and servicing processes using multivendor software has decreased dramatically, NCR Corp. announced Sept. 8.
The Duluth, Ga.-based ATM manufacturer installed its multivendor software programs into the ATM network of Alaska USA Federal Credit Union in 38 days, a task that previously could take longer than a year, Stephen Risto, director of APTRA software center of expertise for NCR Corp., tells PaymentsSource.
Alaska USA, a $4.6 billion credit union with branches in Alaska, California and Washington, operates more than 150 ATMs, including nearly 70 non-NCR machines, NCR stated in a press release.
Multivendor software for ATMs has been on the rise for the past 10 years, Risto says.
“What we’re saying now is that this software works, we’ve finally achieved it (without months of testing and fixing),” Risto says about the shorter installation period. “This has not been accomplished before.”
Installing software that works on all ATMs in a network has become more appealing to financial institutions because mergers or acquisitions have left many with an array of different brands of ATMs in use, Risto says.
With ATMs adding more capabilities, such as check image deposit or audio guidance for the customer, banks are finding it easier to add new features if the ATMs all operate using a similar software, Risto adds.
“(With) any kind of change, whether adding a new capability, or even in the case of the emergence of the EMV smartcard in the United States, the banks don’t want to have to go through two different sets of upgrades because they have both NCR and Diebold ATMs in use,” Risto says.
Smaller financial institutions want to offer the same services as larger banks, and the multivendor software will make that process easier as new services are added to ATMs, Risto says.
Risto hopes NCR’s faster deployment will spur smaller banks to seek the multivendor software.
Bank executives previously balked at length of time for the installation, fearing it would disrupt customers’ use of the machines, Risto adds.
Only 1% of U.S. financial institutions with less than $50 billion in assets have installed multivendor software applications, despite 75 percent of the 20 largest banks doing so, NCR said in the press release.
“Historically, the bigger banks are the first to provide new capabilities on their ATMs, and they have thousands of ATMs, so they’ve had the problem of needing multivendor software for years,” Risto says. “The smaller banks have always been less concerned, but now that they want to offer these other features at their ATMs, they are seeing the logic in having their ATMs all operating on a similar software.”
While Diebold Inc. would still service its ATM hardware and some software elements, NCR has inked comprehensive agreements with Diebold regarding NCR supporting the multivendor software, Risto says.
The speed of the installation was the key selling point for John Kerley, Alaska USA vice president of operations, who deemed the experience positive.
“For years, like many financial institutions, we tried to avoid multivendor software deployments because they had an aura of being problematic and taking a long time to complete,” Kerley said in NCR’s release.
The quick deployment represents “a significant achievement for NCR” because past multivendor installations have been difficult for NCR and others to complete without several months of work, David Albertazzi, a senior analyst and expert with Boston-based Aite Consulting Group, tells PaymentsSource.
“It’s a great story, but we will want to see a repeat of that story,” Albertazzi says. “I don’t know if one deployment proves the point [to other banks], but NCR has solidified that they have the expertise to deploy these solutions and they have the confidence they can repeat it.”
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