ATM Monitoring Technology for Omnichannel Banking Systems - By Robin Arnfield, contributing writer, ATMmarketplace.com
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GUIDE
ATM Monitoring
Technology for
Omnichannel
Banking Systems DEVELOPED AND PUBLISHED BY:
By Robin Arnfield, contributing writer, ATMmarketplace.com
SPONSORED BY:
CONTE NTS
Page 4 Introduction
Page 10 Chapter 1 | ATM monitoring and management survey results
Page 24 Chapter 2 | Interviews with financial institutions
Page 35 Chapter 3 | Recommendations from consultants and vendors
Page 45 References
Published by Networld Media Group
© 2015 Networld Media Group
Written by Robin Arnfield, contributing writer,
ATMMarketplace.com
Tom Harper, president and CEO
Kathy Doyle, executive vice president and publisher
Suzanne Cluckey, editor
Brittany Warren, custom content editor
© 2015 Networld Media Group | Sponsored by Auriga
2
CONTRIBUTING ORGANIZATIONS
Auriga (Italy) Co-op Financial Services (U.S.)
Alfa-Bank (Russia) First Data (U.S.)
Andrew Martin, Retail Bank Consulting Group (U.K.) First National Bank (South Africa)
ATMIA Inetco Systems (Canada)
Banca Marche (Italy) Kiwibank (New Zealand)
Banco Sabadell (Spain) Mercator Advisory Group (U.S.)
BBVA Compass (U.S.) National Bank of Canada
BECU (U.S.) PNC Bank (U.S.)
BNL Gruppo BNP Paribas (Italy) Raiffeisen Bank International (Austria)
Francesco Burelli, partner, Danny Rogge, Rogge Consult (Belgium)
Innovalue Management Advisors (U.K.)
Servizi Bancari Associati (Italy)
CaixaBank (Spain)
Jim Tomaney, managing director, Q-ATM (U.K.)
CartaSi (Italy)
UBS (Switzerland)
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3
INTRODUCTION
ATM Marketplace surveyed more than 100 FIs worldwide
and conducted detailed interviews with leading European
and North American banks and consultants to compile ATM
Monitoring Technology for Omnichannel Banking Systems.
This report examines how FIs use their existing ATM Robin Arnfield
monitoring and management platform, as well as how they MobilePaymentsToday.com
might integrate ATM monitoring technology into an om- Robin Arnfield has been a technology journalist since
nichannel environment. 1983. His work has been published in ATM Marketplace,
Mobile Payments Today, ATM & Debit News, ISO & Agent,
ATM Marketplace thanks Auriga for allowing us to bring CardLine, Bank Technology News, Cards International
this publication to you at no cost. We also thank all the and Electronic Payments International. He has covered
participants in our survey. the United Kingdom, European, North American and Latin
American payments markets.
ATM monitoring and management survey
From June to July 2015, ATM Marketplace conducted an online, digital signage, etc.). The remaining respondents
international survey of FIs on the topic of ATM monitor- (76 percent) manage their channels as siloes.
ing technologies for use in conjunction with omnichannel
banking services platforms. While one-third (34 percent) of respondents plan to mi-
grate to a single omnichannel management system, 44
The survey received responses from 106 ATM-operating percent are unsure about their plans. The remainder (23
FIs from around the world. percent) don’t plan to migrate to a single omnichannel
Respondents were asked, “How many ATMs do you have management system.
in your fleet?” More than one-quarter (27 percent) of respondents have a
A quarter (26 percent) of respondents have more than single omnichannel monitoring system that enables them
2,000 ATMs, while 25 percent have fewer than 100 ATMs. to control all their existing channels.
Just over one-fifth (21 percent) have 501-2,000 ATMs, More than one-quarter (28 percent) of respondents plan to
while 29 percent have 101-500 ATMs. migrate to a single omnichannel monitoring system. How-
ever, more than one-half (53 percent) are unsure about
their plans, and the remainder (20 percent) don’t plan to
Siloed approach migrate to a single omnichannel monitoring system.
The survey found that most respondents have a siloed ap-
proach to channel management and monitoring. Suppliers
Nearly one-quarter of respondents (24 percent) have a The survey found that three-quarters (74 percent) of
single omnichannel management system that manages all respondents use an external ATM monitoring system sup-
their distribution channels (ATMs/kiosks, branches, mobile, plier, as opposed to in-house developed solutions.
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4
ATM Monitoring Technology for Omnichannel Banking Systems
Nearly half (44 percent) of respondents answered yes Just over one-quarter (27 percent) said their monitoring
when asked whether they would use an external ATM solution includes predictive maintenance features, while
monitoring solution supplier. 51 percent answered no, and the remainder (22 percent)
said they didn’t know.
Two-thirds (64 percent) of respondents said they wouldn’t
be willing to develop their own ATM monitoring solution. Nearly half (48 percent) said their monitoring solution
includes dashboards with a “bird’s eye” view ATM map
Nearly two-thirds (60 percent) of respondents use an ATM showing availability across their fleet, while 37 percent
monitoring solution supplied by their ATM software vendor, answered no, and the remainder (15 percent) said they
while nearly half (42 percent) use an ATM monitoring solution didn’t know.
from a third-party supplier that is also a hardware provider.
Only 11 percent of respondents said their monitoring
Just over one-third (36 percent) of respondents use a solution offers autonomous configuration of new key
monitoring solution from a vendor-independent ATM soft- performance indicators (KPIs) without input from the
ware supplier such as Auriga that provides ATM transac- supplier, while 57 percent said no, and 33 percent said
tional software but not ATM hardware. they didn’t know.
One-quarter (25 percent) of respondents answered yes
when asked whether they would be willing to use a moni- Improvements
toring tool from a vendor-independent ATM software sup-
plier that provides ATM transactional software but doesn’t Half (50 percent) of respondents said their monitoring
provide ATM hardware. However, 69 percent said they solution had made noticeable improvements to their ATM
were neutral, and 6 percent said no. availability levels compared to before they deployed the
solution. The remainder said they didn’t know what their
Just over half (51 percent) of respondents use the same improved ATM service availability was.
company to provide their monitoring software and to oper-
ate and manage their ATM monitoring services. Nearly one-quarter (24 percent) of respondents said their
improved ATM service availability had reduced their opera-
tional costs by up to 25 percent, while 14 percent said their
Monitoring features operational costs had been reduced by 26-50 percent.
More than three-quarters (76 percent) of respondents No respondents had seen a reduction of more than 50
said their monitoring solution includes terminal monitoring percent, and 62 percent said they didn’t know what the
features that collect information about the terminal’s status reduction was.
changes and indicate any potential or real problems.
Just over one-third (21 percent) of respondents said they
In addition, 71 percent said their monitoring solution offers have been able to reduce field engineers’ on-site activi-
monitoring of technical problems connected with ATM ties by up to 25 percent due to their improved ATM service
hardware components as well as transactional monitoring. availability, while 17 percent said they had been able to
Only 31 percent of respondents said their monitoring reduce field engineers’ visits by 26-50 percent. No respon-
solution includes proactive monitoring with automatic self- dents had seen a reduction of more than 50 percent, while
healing capabilities, automated incident processing and 62 percent said they didn’t know what the reduction was.
resolution flow. More than half (51 percent) answered no More than half (57 percent) of respondents said they are
to this question, and the remainder (18 percent) said they satisfied with their current monitoring solution. Asked
didn’t know. whether they plan to change their monitoring solution, 61
percent said yes.
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ATM Monitoring Technology for Omnichannel Banking Systems
KPIs nology that gives you advance warning of problems means
you can take care of issues ahead of peak time. For
Asked to identify the essential KPIs that need to be pro-
example, if you detect the receipt printer is about to fail,
vided by a monitoring solution, respondents gave answers
and you know most people get paid on Friday and then
such as:
withdraw their pay packet at an ATM, you can do the repair
• ATM down; by Wednesday. This will ensure an optimum service level
• Length of time ATM is down; for your customers.”
• Failed transaction; Running ATM monitoring means that ATM deployers can
• ATM uptime; save on field engineer costs, as they don’t need to send
field engineers out on routine maintenance inspections to
• Service level agreements (SLAs) monitoring; check every ATM, O’Brien says.
• Customer availability of ATM by function or critical com-
ponent, communications failure, out of cash, part failure, “A best practice in ATM monitoring is to use software that
mean time to repair, reports by region, district, city, etc.; puts a virtual agent on the ATM at the XFS (extensions for
financial services) level to monitor the machine,” Q-ATM’s
• Ability to view entire fleet at once, automated ticket Tomaney said. “The virtual agent can take care of prob-
opening and predictive maintenance would be nice. lems locally and send reports to the help desk.”
In-depth interviews In a Payments Journal blog post, O’Brien wrote: “Recent
Mercator Advisory Group research on various banking
For this report, ATM Marketplace conducted in-depth in- channels systems, including ATMs, branch, and mobile
terviews with innovative FIs in Europe and North America, banking systems, shows an increased interest — and
including U.S.-based BECU and BBVA Compass, Spain’s need — for systems monitoring and management sys-
Banco Sabadell and CaixaBank, Italy’s BNL Gruppo BNP tems. These capabilities go beyond traditional condition
Paribas, Austria’s Raiffeisen Bank International and Swit- monitoring systems, which often focus on system health
zerland’s UBS. and potential downtime, and increasingly include applica-
Interviews also were conducted with leading ATM man- tion performance monitoring and threat monitoring and
agement and monitoring consultants including Francesco management solutions. And while fraudsters will continue
Burelli, a partner at Innovalue Management Advisors; Ed to find ways to compromise banking systems, having such
O’Brien, director of Mercator Advisory Group’s Banking pro-active, defensive solutions can help to reduce the
Channels Advisory Service; Danny Rogge, owner of Rogge number and severity of attacks.”
Consult; and Jim Tomaney, managing director of Q-ATM. With FIs increasingly deploying advanced, multifunction
None of the FIs interviewed in person by ATM Marketplace ATMs as part of their branch transformation initiatives,
said they had integrated omnichannel management and real-time and highly precise monitoring and management of
monitoring systems, and many identified necessary orga- these sophisticated machines is important if FIs are to avoid
nizational changes as a key barrier to moving from siloed customer dissatisfaction due to downtime or malfunctions.
monitoring and management. “When moving teller operations to self-service and
assisted-service devices, complexity and cost are added
Best practice to the self-service channel,” said Carmine Evangelista,
chief technology officer at Auriga. “The more complex the
“It’s almost foolhardy not to have ATM systems monitor- channel becomes and the greater the variety of transac-
ing,” Mercator’s O’Brien said. “It’s like preventive mainte- tions performed, the bigger the challenge is for the moni-
nance for your home or car. Using ATM monitoring tech- toring solution.”
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ATM Monitoring Technology for Omnichannel Banking Systems
“In the complex environment (of multifunction ATMs),
where ATMs are more than cash dispensers, it’s essential “It’s almost foolhardy
to ensure not just cash and machine availability but the
availability of a complete range of services that custom- not to have ATM systems
ers require at all times in strict security conditions,” a monitoring. It’s like preventive
spokesperson for CaixaBank said. “To achieve this goal,
operations management isn’t enough. You need to study
maintenance for your home or
at all times the behavior of each ATM and its users in order car. … [ATM monitoring] will
to predict and detect any changes needing to be made
ensure an optimum service
in order to continue offering the best service. Informa-
tion received from other channels is essential in order to level for your customers.”
maintain online contact with the ATM network in order to — Ed O’Brien, director of Mercator Advisory Group’s Banking
exceed client expectations. Channels Advisory Service
Omnichannel
“Best Practice for Developing and Deploying the ATM in a
In an omnichannel banking environment, customers inter-
Multi-Channel Retail Banking Delivery System.”
act with FIs via the channel of their choice — at branches
and call centers or via self-service channels such as O’Brien says it’s especially the case with smaller FIs that
ATMs, the Web and mobile devices. their various channels may be siloed.
“True omnichannel includes not just integration but also “Consumers expect banks to provide a consistently great
collaboration between the different channels, so banks can experience,” said Ron Hemming, senior vice president, IT
have a 360-degree real-time view of customers’ needs and director of ATM operations/network/enterprise monitoring,
behaviors, at U.S.-based BBVA Compass. “Consumers will want their
bank to allow them to complete transactions where and
and customers can start a transaction on one channel and
when they want, which means providing a strong brand
complete it on another and obtain real-time information,”
across all technologies. The barriers to an omnichannel
Mercator’s O’Brien said.
experience are more likely to appear within the bank itself
A key driver for investing in omnichannel integration is to than with consumers. Getting the bank to focus on a holis-
improve the customer experience. “C-level bank execu- tic view of the customer experience can be difficult.”
tives realize the importance of offering good customer
“Having team members change their view of building their
experience if their bank is to remain a primary FI for their
widget and instead look at the entire experience from
customers,” O’Brien said. “Banks are moving to omnichan-
branch, ATM, online banking to mobile apps is the key to
nel so they can compete more effectively against the direct
being successful,” Hemming said. “Consumers change the
banks and the new innovative payment companies as well
way they bank perhaps several times a day using smart-
as against other incumbent banks.”
phones, tablets, online banking websites and ATMs, so
“A key barrier to omnichannel integration is legacy sys- these all need to be consistent.”
tems,” said Lamberto Spadari, systems manager at Italy’s
Banca Marche.
ATM growth forecast
Management constraints caused by organizational siloes U.K.-based consultancy RBR predicts the global ATM
also represent a key barrier to omnichannel integration, installed base will increase to almost four million ATMs
according to the ATM Industry Association (ATMIA) report by 2019.
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ATM Monitoring Technology for Omnichannel Banking Systems
Growth patterns will vary widely over the forecast period, to the shared Banco24Horas network as an alternative to
RBR’s “Global ATM Market and Forecasts to 2019” report increased off-site deployment. Elsewhere in Latin America,
says. Several Asia-Pacific and Middle East and Africa four of the region’s seven major markets grew by 5 percent or
(MEA) countries will see double-digit annual growth rates, more in 2013, with cost-cutting and strong demand from new
while a small number of markets — primarily in Western customers among the principal drivers of new installations.
Europe — will contract.
It’s a different story in more established markets, with
The Nigerian market will almost triple in size between more than half of the 20 major markets in North America
2013 and 2019, as banks ramp up levels of off-site deploy- and Western Europe contracting in 2013. The only no-
ment to compete for a share of the increasing transaction table exception to sluggish growth in these two regions
volumes. Other major MEA markets will experience strong is Turkey, the youngest of Western Europe’s major ATM
growth as well, driven by both customer demand and gov- markets; much of Turkey’s growth came from state-owned
ernment requirements. banks, as these began to replicate the private banks’
recent expansion.
RBR forecasts growth of installed bases in almost all
Central and Eastern Europe (CEE) and Latin American
countries, though at a fairly slow rate. The availability of Off-site ATMs
low-cost ATMs will help boost CEE installations, while Off-site ATMs make up almost half of the global installed
Latin American deployers will expand their fleets to meet base, although their share declined slightly in 2013, RBR
demand from newly banked customers. says. In some countries, high off-site shares can be at-
RBR says deployers in the majority of markets remain tributed to the presence of independent ATM deployers
cautiously optimistic about the potential for further growth, (IADs); this is the case in the U.S. and the U.K., which
with possible inhibitors — particularly cost-related factors have well-developed IAD sectors. Overall, IAD ATMs make
— continuing to weigh on ATM strategies. Even in the few up 16 percent of the global installed base, RBR says.
countries where a decline in numbers is expected, this is Globally, the lobby was the only location type to see its
likely to occur slowly and possibly even reverse in the lat- share rise in 2013, RBR says. One reason for this is the
ter years of the forecast period, RBR says. increasing implementation of automated deposit technol-
ogy, as lobby ATMs offer the convenience of extended-
Regional breakdown hours availability, with transactions in a secure branch-
like environment.
The Asia-Pacific region accounted for more than 40
percent of the 2.8 million ATMs installed worldwide at the
end of 2013, RBR says. China now has the largest ATM ATM share by location, end of 2013
installed base, having surpassed the U.S. in 2013.
MEA is the second-fastest growing region, and is the only
region in which all of the countries surveyed by RBR saw
an increase in ATM numbers in 2013. In Russia — where
the first ATMs were installed in the early 1990s — the
installed base continues to grow strongly and far outstrip
other countries in CEE, as Russian banks bring ATMs to
underserved rural areas.
An important emerging market whose growth has slowed
in the last few years is Brazil, where banks now are turning
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ATM Monitoring Technology for Omnichannel Banking Systems
Improving existing operations
According to RBR’s “ATMs in Europe 2014: Hardware, Soft-
ware and Services report,” European banks increasingly
are focusing on improving their existing ATM operations
rather than on deploying more terminals.
The report says that, with the exception of the Russian
and Turkish markets, which saw significant growth, the Eu-
ropean installed base shrank by more than 15,000 ATMs in
2013. Despite this, the market saw a significant increase in
the number of automated deposit ATMs featuring cash-
recycling technology.
In Europe as a whole, the number of ATMs featuring cash-
recycling technology increased by 18 percent in 2013 to
28,000, of which nearly half were installed in Germany.
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CHAPTER 1
ATM monitoring and
management survey results
In July 2014, ATM Marketplace surveyed FIs worldwide about their deployment of
ATM-mobile integration technology and their multichannel banking strategies.
The survey received responses from 106 banks and other types of FIs from around
the world. Non-FI ATM operators, ATM vendors and other non-FI respondents were
not included in the survey results.
1. In which region is your headquarters located? 2. How many ATMs do you have in your fleet?
3%
Australia
Canada While 29 percent of respondents have 101-500 ATMs,
25 percent have 1-100 ATMs, 21 percent have 501-2,000
7% Western Europe ATMs and 26 percent have more than 2,000 ATMs.
United States 7%
28% Latin America/
9% South America
Eastern
Europe
Asia 11%
20% Middle East/
Africa More
16% than 2,000 1-100
26% 25%
501-2,000
The U.S., with 28 percent, accounted for the largest share 21% 101-500
of respondents answering this question. 29%
One-fifth (20 percent) of respondents have their head-
quarters in Asia, followed by the Middle East and Africa
with 16 percent, Eastern Europe with 11 percent and Latin
America/South America with 9 percent. Western Europe
accounted for 7 percent, Canada for 7 percent and Austra-
lia for 3 percent.
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10ATM Monitoring Technology for Omnichannel Banking Systems
3. Do you have a single omnichannel management
system to manage all your distribution channels 5. Do you have a single omnichannel monitoring
(ATMs/kiosks, branches, mobile, PC Internet, system so you can control all your existing
digital signage, etc.), or do you manage your channels and ensure high service availability
channels as silos? for all your customers’ contact points?
24%
Yes
76% 27%
Omnichannel
Silo management management system
No
Nearly one-quarter (24 percent) said they have a single
73%
omnichannel management system, while 76 percent have
siloed channel management systems.
Only 27 percent of respondents have a single omnichannel
monitoring system, while the remainder (73 percent) have
siloed monitoring systems.
4. Do you plan to migrate to a single omnichannel
management system?
Only 34 percent of respondents plan to migrate to a
6. Do you plan to migrate to a single omnichannel
single omnichannel management system, while 23 per-
monitoring system?
cent have no plans to do so. Nearly half (44 percent)
said they aren’t sure.
53%
28%
Yes 20%
34%
Not sure
44%
Just over one-quarter (28 percent) of respondents said
No they plan to migrate to a single omnichannel monitoring
23% system. However, 20 percent said they don’t plan to do
so, and 53 percent said they don’t know.
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11ATM Monitoring Technology for Omnichannel Banking Systems
7. From which of the following platforms do you
access your monitoring system? Just over half (56 percent) of respondents use a desktop
operational management console to access their monitor-
ing system, while 44 percent use a Web-based operation-
Web-based operational management console accessible
from any device used to connect to the internet 44% al management console accessible from any device used
to connect to the Internet.
None of the respondents use a native application for
Desktop operational management console 56% smartphones and/or tablets enabling staff to access their
monitoring system.
8. From which of the following platforms would you like to be able to access your monitoring system:
desktop operational management console; Web-based operational management console accessible
from any device used to connect to the Internet; a specific native application for smartphones; a
specific native application for tablets?
No
6%
No
No
20% 27%
No
30%
Yes Yes Yes
Yes
80% 73% 70%
94%
Of those who answered this question:
• 64 respondents said they would like to access their monitoring system via a Web-based operational
management console and four said they would not;
• 47 said they would like to use a desktop operational management console and 12 said they would not;
• 41 said they would like to use a specific native application for smartphones and 15 said they would not;
• and 40 said they would like to use a specific native application for tablets and 17 said they would not.
9. Do you think deploying meeters and greeters within your branches who have a monitoring app
on their smartphones/tablets could help reduce out-of-service time and costs?
More than half (57 percent) of respondents to this ques-
Yes 57% tion said deploying meters and greeters in branches with
a monitoring app on their smartphones/tablets could help
No 13% reduce out-of-service time and costs. Nearly one-third (30
percent) said they didn’t know, and 13 percent said they
I don't know 30%
would not help reduce out-of-service time and costs.
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12ATM Monitoring Technology for Omnichannel Banking Systems
10. How much integration did you require for 12. Do you use an ATM monitoring solution from
your ATM monitoring solution with your an external supplier, or do you use your own
existing architecture? monitoring solution that was developed and
managed in-house?
Strong integration with your existing
central system and ATM software 46%
In-house
monitoring
solution
Light integration with your existing
central system and ATM software 54% 26%
External supplier
74%
More than half (54 percent) said they required light
integration with their existing central system and ATM Nearly three-quarters (74 percent) of respondents said they
software, while 46 percent required strong integration. use an external ATM monitoring solution supplier, and the
remainder (26 percent) use an in-house monitoring solution.
13. Would you use an ATM monitoring solution
from an external supplier?
11. How important a criterion for you is the cost of
integrating your ATM monitoring solution into
your existing architecture? 44% 56%
Low
9% Yes No
Of the respondents to this question, 44 percent said they
High would use an ATM monitoring system from an external
46% supplier, and 56 percent said they would not.
Medium
46% 14. Do you use an ATM monitoring solution
supplied by your ATM software vendor, e.g.,
NCR ATM monitoring software and NCR
ATM software?
40%
Nearly half (46 percent) of respondents said the cost of
60%
integrating their ATM monitoring system into their existing
ATM architecture is highly important, while 46 percent said
it is of medium importance. Nine percent said the cost is of Yes No
low importance. Just under two-thirds (60 percent) of respondents use an
ATM monitoring solution supplied by their ATM software
vendor, while 40 percent said they do not.
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13ATM Monitoring Technology for Omnichannel Banking Systems
15. Do you use an ATM monitoring solution from 17. Do you use a monitoring solution from a vendor-
a third-party supplier that is also a hardware independent ATM software supplier such as
provider, e.g., NCR ATM monitoring software Auriga that provides ATM transactional software
with Wincor Nixdorf ATM software? but doesn’t provide ATM hardware?
64%
42% 58%
36%
Yes No Yes No
While 42 percent of respondents to this question said Just over one-third (36 percent) of respondents said they
they use an ATM monitoring solution from a third-party use a monitoring solution from a vendor-independent
supplier that is also a hardware provider, 58 percent said ATM software supplier that provides ATM transactional
they do not. software but doesn’t provide ATM hardware. However,
64 percent answered no to this question.
16. Would you be willing to use a third-party ATM 18. Would you be willing to benefit from hardware
monitoring solution supplier that is also a agnosticity and use a monitoring tool
hardware provider? from a vendor-independent ATM software
supplier such as Auriga that provides ATM
transactional software but doesn’t provide
ATM hardware?
Yes
31% Yes
25%
Neutral
52%
No
No
Neutral 6%
17% 69%
Just under one-third (31 percent) of respondents said they One-quarter (25 percent) of respondents said they would be
would be willing to use a third-party ATM monitoring solution willing to use a monitoring tool from a vendor-independent
supplier that is also a hardware provider, but 17 percent said ATM software supplier that provides ATM transactional
they do not, and 52 percent said they were neutral. software but doesn’t provide ATM hardware. However,
69 percent said they were neutral, and 6 percent said no.
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14ATM Monitoring Technology for Omnichannel Banking Systems
19. Do you use a monitoring solution from a software supplier that just provides monitoring
software and doesn’t provide ATM transactional software?
More than three-quarters (78 percent) of respondents
22% said they don’t use a monitoring solution from a soft-
ware supplier that just provides monitoring software
78% and doesn’t provide ATM transactional software. The
remainder (22 percent) answered yes to the question.
Yes No
20. Would you be willing to use a monitoring tool from a software
supplier that doesn’t provide any ATM transactional software?
15%
Two-thirds (64 percent) of respondents said
21%
64% they were neutral on this issue, while 15
percent said yes, and 21 percent said no.
Yes No Neutral
21. Would you be willing to develop your own monitoring solution?
Two-thirds (64 percent) of respondents
said they wouldn’t be willing to develop 36%
their own monitoring solution, while the 64%
remainder (36 percent) said they would.
Yes No
22. Do you use the same company to provide your monitoring software
and to operate and manage your ATM monitoring services?
Just over half (52 percent) of respondents said
Yes 52% they use the same company to provide their
monitoring software and to operate and man-
age their ATM monitoring services. However,
No 49% 49 percent answered no to this question.
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15ATM Monitoring Technology for Omnichannel Banking Systems
23. Would you be willing to use the same company to 25. Is your monitoring solution management
provide your monitoring software and to operate service multi-time-zone?
and manage your ATM monitoring services?
Yes 42%
56% No 36%
44% I don't know 22%
Less than half (42 percent) of respondents said their
monitoring solution is multi-time-zone, while 36 percent
said no, and 22 percent said they didn’t know.
Yes No
26. Does your monitoring solution include terminal
monitoring features that collect information
More than half (56 percent) of respondents said they about the terminal’s status changes and
indicate any potential or real problems?
would be willing to use the same company to provide
their monitoring software and to operate and manage
their ATM monitoring services. However, 44 percent
answered no to this question. 76%
18% 6%
24. Is your monitoring solution multibank, i.e., Yes No I don't know
able to monitor different ATM networks
owned by different bank subsidiaries within Three-quarters (76 percent) of respondents said their
the same group? monitoring solution includes terminal monitoring fea-
tures that collect information about the terminal’s status
changes and indicate any potential or real problems.
Only 18 percent answered no to the question, and six
I don't know
percent said they don’t know.
16%
Yes
44%
27. Does your monitoring solution offer monitoring of
technical problems connected with ATM hardware
components as well as transactional monitoring?
No
40%
18%
71%
Yes No I don’t know
While 44 percent of respondents said their monitoring Nearly three-quarters (71 percent) of respondents said
solution is multibank, 40 percent answered no, and 16 their monitoring solution offers monitoring of technical prob-
percent said they didn’t know. lems connected with ATM hardware components as well as
transactional monitoring. While 18 percent answered no to
this question, 11 percent said they didn’t know.
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16ATM Monitoring Technology for Omnichannel Banking Systems
28. Does your solution include proactive monitoring 30. Does your solution include remote
with automatic self-healing capabilities, automated management operations capabilities enabling
incident processing and resolution flow? a remote operator to send commands from
the central system to the terminal in order to
avoid engineers’ field visits?
I don't know
18% Yes
31%
66%
24% 11%
No
51% Yes No I don't know
Two-thirds (66 percent) of respondents said their solu-
tion includes remote management operations capabili-
ties that allow a remote operator to send commands
Half (51 percent) of respondents to this question said their from the central system to the ATM. One-quarter (24
solution doesn’t include proactive monitoring with automat- percent) answered no to the question, and 11 percent
ic self-healing capabilities, automated incident process- said they didn’t know.
ing and resolution flow. Just under one-third (31 percent)
answered yes, and 18 percent said they didn’t know.
31. Does your solution include an incident
29. Does your solution include predictive management ticketing system using all the
maintenance capabilities? messages and data from the terminals to
automatically trigger a process in compliance
with a predefined tracking and alerting workflow?
I don't know Yes
22% 27% 9%
24%
No 67%
51%
Yes No I don’t know
More than half (51 percent) of respondents said their solu-
Two-thirds (67 percent) of respondents said their solution
tion doesn’t include predictive maintenance capabilities,
includes an incident management ticketing system, while 24
while 27 percent answered yes to the question, and 22
percent said it does not, and 9 percent said they didn’t know.
percent said they didn’t know.
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17ATM Monitoring Technology for Omnichannel Banking Systems
32. Do you have to integrate your monitoring solution with an external ticketing system?
Less than one-third (31 percent) of re-
Yes 31%
spondents said they have to integrate their
No 54% monitoring solution with an external ticketing
system, while 54 percent said they did not
I don't know 15% know, and 15 percent said they didn’t know.
33. Is your monitoring solution able to connect to external hardware
vendors’ ticketing systems?
Nearly half (46 percent) of respondents said
30% their monitoring solution is able to connect
46% to external hardware vendors’ ticketing sys-
tems, while 24 percent said it was not able to
24% do so, and 30 percent said they didn’t know.
Yes No I don’t know
34. Does your monitoring solution offer real-time engineer tracking and supervision?
More than one-third (37 percent) of respon-
dents said their monitoring solution offers real- I don't know Yes
time engineer tracking and supervision, while 30% 37%
33 percent said it does not, and 30 percent said
they didn’t know. No
33%
35. Does your monitoring solution provide statistics in tables and graphical formats?
59% More than half (59 percent) of respondents
said their monitoring solution provides statis-
tics in tables and graphical formats, while 26
15% percent said it does not, and 15 percent said
26% they didn’t know.
Yes No I don't know
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18ATM Monitoring Technology for Omnichannel Banking Systems
36. Does your solution include dashboards and a “bird’s eye view” ATM map giving a clear
view of service availability in your fleet according to different regions, bank IDs, etc.?
Yes 48% Nearly half (48 percent) of respondents
said their solution includes dashboards
No 37% and a “bird’s eye view” ATM map, while
37 percent said no, and 15 percent said
they didn’t know.
I don't know 15%
37. What are the essential KPIs (key performance indicators)
that need to be provided by a monitoring solution?
Respondents gave answers such as:
• Service level agreements (SLAs) monitoring;
• ATM down; • Customer availability of ATM by function or critical
component, communications failure, out of cash,
• Downtime, return to service rates; part failure, mean time to repair, reports by region,
district, city, etc.;
• Availability, time to arrive, time to fix;
• Transaction per day; average transaction time;
• Length of time ATM is down;
• Reliable error messaging, 24x7 availability of
• Failed transaction;
monitoring, link into accurate reporting;
• ATM uptime;
• Ability to view entire fleet at once, automated ticket
• Real-time cash, communications and fault monitoring; opening and predictive maintenance would be nice.
38. Does your monitoring solution offer autonomous configuration of
new KPIs without input from the supplier?
Only 11 percent of respondents said their 11%
monitoring solution offers autonomous
33%
configuration of new KPIs without sup-
plier input. More than half (57 percent) 57%
said it does not, and 33 percent said they
didn’t know.
Yes No I don’t know
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19ATM Monitoring Technology for Omnichannel Banking Systems
39. Does your solution include autonomous and on- 41. Does your solution offer complete hardware
demand electronic journal collection, storage and software terminal inventory capabilities
and consulting? that collect and report on any configured
management information available locally on
the ATM?
I don't know
17%
Yes Yes 35%
48%
No 37%
No I don't know 28%
35%
Just over one-third (35 percent) of respondents said
their solution offers complete hardware and software
terminal inventory capabilities, while 37 percent said it
does not, and 28 percent said they didn’t know.
Nearly half (48 percent) of respondents said their solution
includes autonomous and on-demand electronic journal
collection, storage and consulting. One-third (35 percent)
said it does not, and 17 percent said they didn’t know. 42. Would you be willing to have a single provider for
monitoring and for terminal inventory capabilities?
40. Would you be willing to use a single provider Neutral
for terminal monitoring and for electronic 29%
journal collection, storage and consulting?
Yes
Yes 59%
25% No
Neutral 12%
63% No
12%
One-quarter (25 percent) of respondents said they would
be willing to use a single provider for terminal monitoring More than half (59 percent) of respondents said they would
and for electronic journal collection, storage and consult- be willing to have a single provider for monitoring and for
ing. Two-thirds (63 percent) were neutral, and 12 percent terminal inventory capabilities, while 12 percent said they
said they would not be willing to use a single provider. would not, and 29 percent said they were neutral.
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20ATM Monitoring Technology for Omnichannel Banking Systems
43. Does your monitoring solution offer software 45. Would you be willing to have a single provider
distribution and release management for monitoring, software distribution and
technology that links your central system release management?
and terminals in order to deploy files on the
terminals, retrieve files from the terminals and
distribute packages to the terminals?
46%
20% 31%
52% 23%
28%
Yes No I don’t know
Nearly half (46 percent) of respondents said they would
be willing to have a single provider for monitoring,
software distribution and release management, while 23
percent said they would not be willing, and 31 percent
More than half (52 percent) of respondents said their
said they were neutral.
monitoring solution offers software distribution and
release management technology that links their cen-
tral system and terminals. One-third (20 percent) said
they didn’t know, and 28 percent said it does not offer
such technology.
46. Do you use a terminal handling solution and
monitoring solution that are both provided by
the same supplier?
44. Is your software distribution and release
management technology a separate product
from your monitoring solution?
I don't know I don't know
No
8% 17%
8% Yes
No 52%
31%
Yes
85%
The majority (85 percent) of respondents said their soft- Just over half (52 percent) of respondents use a terminal
ware distribution and release management technology handling solution and monitoring solution that are both
are a separate product from their monitoring solution, provided by the same supplier, while 31 percent said they
while 8 percent said it was not separate, and 8 percent do not, and 17 percent said they didn’t know.
said they didn’t know.
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21ATM Monitoring Technology for Omnichannel Banking Systems
47. Do you use a monitoring solution and a fraud 49. Are you satisfied with your current
management solution that are both provided by monitoring solution?
the same supplier?
I don't know
12% Yes
26% 43%
57%
Yes No
No
62% More than half (57 percent) of respondents said they
were satisfied with their current monitoring solution,
while 43 percent answered no.
Two-thirds (62 percent) of respondents don’t use a moni-
toring solution and a fraud management solution that are
both provided by the same supplier, while 26 percent said
they do, and 12 percent said they didn’t know. 50. Are you planning to change it?
48. Would you say your monitoring solution
has noticeably improved your ATM service
No
availability levels compared with before you
deployed the solution? 39%
Yes
61%
I don't know Yes
50% 50%
Half (50 percent) of respondents said that their monitor-
ing solution had improved their ATM service availability Nearly two-thirds (61 percent) of respondents are planning
levels noticeably compared with before they deployed to change their ATM monitoring solution, while 39 percent
the solution. The remainder said they didn’t know what don’t plan to do so.
their improved ATM service availability was.
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22ATM Monitoring Technology for Omnichannel Banking Systems
51. By what percentage has your improved ATM service 52. By what percentage have you been able to
availability reduced your operational costs? reduce field engineers’ on-site activities due
to your improved ATM service availability?
Up to 25%
24% Up to 25%
21%
I don't know
62% 26-50% I don't know 26-50%
14% 62% 17%
Just over one-third (21 percent) of respondents said
Nearly one-quarter (24 percent) of respondents said their they had been able to reduce field engineers’ on-site
improved ATM availability had reduced their operational activities by up to 25 percent due to their improved
costs by up to 25 percent, while 14 percent said 26-50 ATM service availability, while 17 percent said by 26-50
percent, no one said above 50 percent, and 62 percent percent, no one said above 50 percent, and 62 percent
said they didn’t know. said they didn’t know.
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23CHAPTER 2
Interviews with
financial institutions
For this report, ATM Marketplace conducted in-depth in-
terviews with executives from 13 innovative FIs in Europe,
New Zealand, North America and South Africa, as well as
with Italy’s CartaSi and Servizi Bancari Associati and with
U.S. credit union-owned ATM network Co-op Financial Ser-
vices and First Data. “I would be willing to use a single provider for terminal
monitoring and for electronic journal collection, storage
and consulting, in order to provide a single ‘window’ for
Alfa Bank
engineers,” Daryoshin said. “For the same reason, I would
In 2014, Moscow-based Alfa Bank’s ATM network included also be willing to use a single provider for monitoring,
3,100 ATMs that it owned and 12,000 ATMs owned by its software distribution and release management. Our soft-
partner banks. ware distribution and release management technology is a
separate product from our monitoring solution.”
“We have siloed channel management systems,” said
Maxim Daryoshin, head of Alfa Bank’s self-service sys- Daryoshin says he is satisfied with Alfa Bank’s current
tems development department, retail business. “We don’t monitoring solution because of its convenience, reliability
plan to migrate to a single omnichannel management and stability. The improvement the bank has seen in ATM
system, as we don’t have a single point of strategic view availability has led to field engineers’ on-site visits being
for all channels and have one independent point of view reduced by up to 25 percent, he says.
per channel.”
“The essential KPIs that need to be provided by a monitor-
Daryoshin says Alfa Bank doesn’t have a single omnichan- ing solution are uptime, customer availability and cash-in-
nel monitoring system, as the bank sees no need for a transit (CIT) operations effectiveness,” Daryoshin said.
single system. “Moving to omnichannel management and
monitoring would require Alfa Bank to make organizational Alfa Bank’s monitoring solution and fraud management
changes, and this is a cornerstone of the problem,” he said. solutions are both provided by the same supplier, Daryo-
shin adds.
Alfa Bank uses an externally supplied ATM monitoring
system that staff access from a Web-based operational
management console, Daryoshin says. Banca Marche
Banca Marche operates approximately 300 branches in
The bank uses different companies to provide its monitor-
Central Italy. “We have silo-based channel management
ing software and to operate and manage its ATM monitor-
systems and have no plans to migrate to an omnichannel
ing services. Its monitoring solution offers autonomous
management system,” said Lamberto Spadari, the bank’s
configuration of new KPIs without input from the supplier.
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24ATM Monitoring Technology for Omnichannel Banking Systems
systems manager. “The different platforms are based on like to be able to access our monitoring system through
specific functional choices, with integration difficulties.” native applications for smartphones and for tablets,” the
spokesperson said.
Banca Marche also has siloed channel monitoring sys-
tems, and currently has no plans to migrate to a single “We think that deploying meeters and greeters within bank
monitoring system due to the “difficulties in undertaking branches who have a monitoring app on their smart-
innovative projects,” Spadari said. “This would also require phones/tablets would help to align staff to the bank’s
us to make organizational changes.” goals and help reduce out-of-service time and costs,” the
spokesperson said.
Currently, Banca Marche staff use desktop operational
management browsers to access their monitoring system, Banco Sabadell uses an ATM monitoring solution from an
but Spadari says he would like to use Web-based opera- external supplier. “We think it’s better to have a market-
tional management consoles. supplied tool because the functionality is standard,” the
spokesperson said. The bank doesn’t think it is necessary
Banca Marche uses the same company to provide its ATM to have a single provider for monitoring, software distribu-
monitoring software and to manage its ATM monitoring tion and release management, the spokesperson says.
services, Spadari says. Its monitoring solution doesn’t
offer autonomous configuration of new KPIs without input According to the spokesperson, the essential KPIs that
from the supplier. need to be provided by a monitoring solution are:
“I’m satisfied with our current monitoring solution, as the • Percentage of time available over total time;
quality of the service is in line with expectations,” Spadari • Average response time by transaction;
says. “We have no plans to change it.” • Number of unavailable ATMs.
Spadari says his requirements for effective ATM man- Banco Sabadell isn’t satisfied with its current monitoring
agement and monitoring are “speed in the analysis and solution, as it doesn’t allow the bank to customize KPIs
resolution of problems.” that it needs, the spokesperson says.
Banco Sabadell
“We think it’s better to have an integrated ATM monitoring
system that gives a global view of all the channels you man-
age,” a spokesperson for Spain’s Banco Sabadell said.
Currently, Banco Sabadell has siloed management solu-
tions for its various channels. “We would like to have a
more integrated channels management, but at the moment
we are developing applications based on big data sys-
tems,” the spokesperson said.
Banco Sabadell has siloed channel monitoring systems.
“Moving to omnichannel monitoring and management would
require organizational changes,” the spokesperson said.
To access the bank’s monitoring systems, staff use desk-
top operational management consoles as well as Web-
based operational management consoles. “We would also
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25ATM Monitoring Technology for Omnichannel Banking Systems
BBVA Compass in order to be successful. Communication is a simple goal
and yet is often missed. Make sure to communicate with
Birmingham, Alabama-based BBVA Compass is the U.S.
the bricks-and-mortar locations. The staff at these loca-
subsidiary of Spain’s BBVA.
tions are often your first line of defense for the customer
Ron Hemming, BBVA Compass’ senior vice president of who has an issue using an ATM.”
IT director ATM operations/network/enterprise monitoring,
The need to have a monitoring system in place that will
says important KPIs are:
work across all machine types within an ATM fleet is es-
• Repeat failures (which ATMs are having repeat perfor- sential, Hemming says. “The ability for your monitoring
mance issues within a certain timeframe); staff to be able to trust the reliability of the monitoring tool
• Average first-time resolve percentage; allows the staff to quickly and confidently troubleshoot
• Average availability time; issues and resolve quickly,” he said. “The hardest part of
ATM monitoring is separating fact from customer percep-
• Maintenance vendor response time to resolve an issue; tion. When a customer has a bad experience at an ATM,
• Maintenance vendor average ATM failure resolve time; they often think the ATM is down when that isn’t the case.
• ATM parts supply stock availability. Being successful at understanding what the customer is
truly feeling and experiencing go hand in hand. The cus-
“Consumers expect banks to provide a consistently great tomer doesn’t care that the ATM can deposit money if they
experience,” Hemming said. “Consumers will want their are trying to deposit a check and the deposit function isn’t
bank to allow them to complete transactions where and available right now. Having the proper staff and tools to
when they want, which means providing a strong brand do in-depth trend analysis along with the ATM monitoring
across all technologies. The barriers to an omnichannel tools is a must.”
experience are more likely to appear within the bank itself
than with consumers. Getting the bank to focus on a holistic
view of the customer experience can be difficult. Having BECU
team members change their view of building their widget Seattle-based BECU, the fourth-largest U.S. credit union,
and instead look at the entire experience from branch, ATM, operates 211 ATMs and has 43 branches. “We don’t drive
online banking to mobile apps is the key to being success- our own ATMs, but we do all the monitoring, dispatching
ful. Consumers change the way they bank perhaps several and reporting in-house,” said Shirley Taylor, ATM channel
times a day using smartphones, tablets, online banking manager at BECU. “So we have a hybrid approach.
websites and ATMs, so these all need to be consistent.”
For several years, BECU has used NCR Aptra Vision (it
Hemming recommends that FIs ensure “their staff are ded- previously used NCR Gasper Vision), accessing the sys-
icated to the customer experience vision. Secondly, have tem via desktop and laptop consoles. “NCR Aptra Vision
a work environment that truly supports a unified culture, gives us insight into our ATM availability,” Taylor said. “Of
and that attempts to knock down the siloes,” he said. “The our 43 branches, only two have a traditional teller line, so
omnichannel world comprises many different components ATM availability is key for us. In the other branches, the
and requires all hands on deck to support customers and ATMs act as tellers.”
their ability to do their business with the bank. A network
team that has the same customer experience vision as the Taylor says BECU has no plans to deploy interactive teller
customer-facing channels is imperative. The importance machines with video links to remote staff. She adds that
of a robust and reliable network is often overlooked. Make BECU’s ATMs are 100 percent image-enabled so custom-
certain to interact with all lines of business that impact an ers can deposit checks.
omnichannel environment; everyone needs to be engaged
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26ATM Monitoring Technology for Omnichannel Banking Systems
“We don’t have plans to migrate to omnichannel monitor-
“Our ATMs act as tellers ing, as we think technology and application monitoring must
be ‘channel specific,’” Iannucci said. “Organizational and
for our organization, so channel structures are the main barriers to moving to an
omnichannel system.”
availability is critical.”
BNL uses a desktop operational management console to
— Shirley Taylor, ATM channel manager at BECU access its monitoring system, but also would like to use
Web-based operational management consoles and na-
tive applications for tablets. “Our in-branch staff don’t have
monitoring duties,” Iannucci said. “But it could be useful to
“Across our entire ATM fleet including off-premises ATMs, deploy meeters and greeters within bank branches who
we average 7,200 monthly transactions,” Taylor said. “At have a monitoring app on their smartphones or tablets to
our financial centers, we average 12,000 to 15,000 ATM help reduce out-of-service time and costs.”
transactions a month. These are just traditional standard BNL uses an ATM monitoring solution from an external sup-
ATM transactions. Not all our branches hit the 12,000 to plier, and uses the same company for its monitoring soft-
15,000 mark, but a good majority do, and a good number ware as well as for operation and management of its ATM
of our off-premise ATMs are also hitting those numbers.” monitoring services. “We have an outsourced full-service
BECU uses Inetco Systems’ Inetco Insight software to approach,” Iannucci said. “Developing our own solutions isn’t
integrate data into NCR Aptra Vision, as well as Inetco our business, so we look for third parties committed to provid-
Analytics customer analytics software. “From an overall ing results. In our ATM environment, the supplier attaches
channel-management perspective, it’s critical to pick up on the monitoring system to our ‘application ports,’ and we don’t
customer trends as part of ATM monitoring,” says Taylor. influence the choice of the specific monitoring product.”
Taylor says BECU’s ATM division is somewhat siloed. “We BNL’s monitoring solution offers autonomous configuration
monitor our ATMs and do escalations from our ATM opera- of new KPIs without input from the supplier. “The essential
tions group, not from our IT group,” she said. “We looked KPIs that need to be provided by a monitoring solution are
at omnichannel monitoring, but don’t think that moving uptime, cash usage, downtime per type, vendor and ma-
to omnichannel monitoring would buy us anything at this chine,” Iannucci said.
point in time.” “I would be willing to use a single provider for terminal
“We don’t put monitoring software on our branch staff’s tab- monitoring and for electronic journal collection, storage and
lets,” Taylor said. “But, if there is a problem at an in-branch consulting,” Iannucci said. “But I wouldn’t be willing to have
ATM or an off-premises ATM, we send a system-generated a single provider for monitoring, software distribution and
email to branch staff to alert them before they get com- release management. Software distribution is managed by
plaints from customers. If you have downtime too often at an internal department and isn’t outsourced.”
your ATMs, you will lose the customer relationship, which Iannucci says BNL’s monitoring solution has had a very posi-
means losing long-term revenue from that customer.” tive effect on ATM service availability since its deployment. .
However, BNL isn’t satisfied with its current monitoring solu-
BNL Gruppo BNP Paribas tion, as it isn’t XFS-based, and plans to change the solution.
Mauro Iannucci, network innovation manager at BNL, the Ital- The improved ATM availability BNL has experienced from
ian subsidiary of France’s BNP Paribas, says the bank has a its monitoring solution has reduced its operational costs by
siloed approach to channel management and monitoring. up to 25 percent, Iannucci says. The bank has been able to
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