ABA Banking Journal - November 2007 - (Page 40)

COVER STORY Impressive state of the art Manufacturers, meanwhile, realize they have very good product, in compliance with Americans with Disability Act, Triple DES, and newer Payment Card Industry (PCI) security requirements, and even, in many cases, sustainability requirements regarding end-of-life disposal and other issues originating out of the European Union. In brief, state-ofthe-art devices look better and can do more, taking the load off tellers and, in effect, extending bank hours. U.S. banks have begun a costly upgrade cycle, mostly to stay on the right side of regulations, and are beginning to take their fleets into the 21st century. And yet, as a recent report issued by Dove Consulting indicates, about 60% of the U.S. ATM market is still OS/2. So the replacement market will present ample opportunity even if, overall, the U.S. market has matured, says Sam Ditzion, Tremont Capital Group, Boston, who agrees that Check 21-related deposit automation will account for most ATM upgrades in the next five years. Otherwise, Ditzion believes that much of the growth of the U.S. ATM industry will come from acquisition. Several trends that might emerge, including participation in surcharge free networks and offering deposit services, favor large network owners. Meanwhile, “all banks will be looking for creative ways to add services that would justify the money they’ve spent to be in compliance,” Ditzion says. How does all of this square with the look of the rest of the world? In a report entitled the Global ATM Market and Forecasts from 2011 to 2017 issued by U.K.-based Retail Banking Research Ltd., the Americas represent 40% of the installed base world wide as of 2005. Asia Pacific, notes managing director Dominic Hirsch, has displaced North America as the largest region for ATMs. By 2011, he notes, the North American share will have fallen to 24%. At the same time, the Latin American share will increase to 12%, while Central Europe will increase from 5% to 9% by 2011 thanks to spectacular growth in Russia and the Ukraine. When it comes to kiosks, statistics are harder to come by, but decision makers at medium sized and large U.S. companies that were queried in Self-Service World’s 2006 Market Survey indicated strong interest. They said that increased operational efficiency was a primary driver, while 34% indicated that greater profitability was the important point. Twenty six percent said that enhanced branding opportunities were a key motivation. Advanced capability Doug Sholes, director of new business development, Triton Systems, Long Beach, Miss., is well aware of the realities of the U.S. market. Not surprisingly, his take is more upbeat, a glass-half-full opportunity that still has places to take the firm. “We can really develop markets here,” says Sholes. The executive talked at length about higher security and compliance standards and marketing opportunities. And what’s happened with his own firm is a microcosm of the bigger industry: Of the 60,000 or so Triton ATMs in the field, only about 1,000 are equipped with Waves, a program of value-added transactions that currently include prepaid phone cards and Western Union money transfers. The company expects to ship 13,000 into 2008. “There is a kind of long tail, gradually emerging demand for more self-service and over time, there will be only more opportunity as devices age and consumers get more familiar with kiosks and other devices.” Again, data points are relatively sparse for the emerging kiosk industry, but there are some early indicators. According to the 2006 survey conducted by Self-Service World, no execs polled in the survey indicated that a self-service budget was going to decrease and, when asked what future plans related to kiosks might be included over the next year, the majority said interactive marketing and loywww.ababj.com/subscribe.html 40 NOVEMBER 2007/ABA BANKING JOURNAL http://www.tremontcapitalgroup.com http://www.selfservice.org/specialpub.php?i=25 http://www.selfservice.org/specialpub.php?i=25 http://www.rbrlondon.com/reports/global http://www.doveconsulting.com http://www.rbrlondon.com/reports/global http://www.rbrlondon.com http://www.tritonatm.com http://www.selfservice.org http://www.ababj.com/subscribe.html

Table of Contents Feed for the Digital Edition of ABA Banking Journal - November 2007

ABA Banking Journal - November 2007 Contents Editor’s Column Briefing: Good News for Mortgages Sleight of Mind N.Y. Hiring Bonanza May Be Bane Snapshot: A Look at Held-For-Investment Loan Growth ABA Resources ABA Chairman’s Position “The Moose Bank” Thrives on Manufactured Housing Loans Finding the Middle Way for Your Bank’s Retirement Program Pass the Aspirin Cover Story: Self-Service Steps Up DIY U.K. Style Marketing to Millennials Getting Real With “Gen Wired” Ethnic Marketing: Disinterested Banking Getting Good at Global Sourcing Case in Point Turn Compliance on It's Head Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - November 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.