ATM viewed as custodian of customer service by Australian banking industry

Thursday, 04 December 2008 10:37

Study finds that high service profile of ATM channel makes branding “critical” for biggest banks.
 A study of the ATM market released today by management consultants, Edgar, Dunn & Company and sponsored by NCR Corporation (NYSE: NCR), the world’s leading provider of self-service solutions to the banking industry, has found that all Australian banks and 72% of study respondents as a whole view the primary role of the ATM as a customer service channel. The report involved 18 ATM deployers in Australia who together represent 87% of the 851 million cash withdrawals completed in the year until 30th June 2008. The study provides a comprehensive insight into the industry’s structure and dynamics, and reveals some of the major ATM trends.
 
The report highlights the significant role that the ATM now plays in empowering people to perform more and more banking tasks through self-service channels. The majority of large banks (80%) and three-quarters of other banks view the ATM as much more than just a cash dispenser. This is reflected in the fact that all banks offer high levels of access (between 70 percent and 100 percent) to ATM services such as envelope deposit, funds transfer, on-screen advertising of the bank’s products and services and PIN change.
 
These figures from the study suggest that banks understand their consumers; a Buzzback survey commissioned by NCR earlier this year found that 85% of Australians were more likely to do business with a company that allowed them to connect, interact and transact via self-service channels.
 
In line with these demands, the study found that Australian financial institutions will continue to add more services through the ATM, including intelligent (‘no envelope’) cash and cheque deposit, bill payment and mobile phone top-up.
 
The ‘ATM as customer service agent’ probably explains why all of Australia’s big banks regard it as “critical” that their ATMs carry their own branding.  For other banks, three-quarters say it is “critical” and the remainder “important”.
 
In September, National Australia Bank (NAB) completed a brand refresh of its entire ATM fleet, which saw the replacement of every unit with new technology from NCR.  NAB was one of the first banks in Australia to install the world’s newest range of ATMs, NCR SelfServ™.
 
Tim Cullen, Head of Direct Channels at NAB (which was a contributor to the study) validates the report’s findings: “The ubiquitous ATM is perhaps the most visible of all banking channels.  Our rejuvenated ATM fleet presents the NAB brand at its best, delivering on our commitment to provide greater levels of convenience to our customers wherever they may be.
 
“Furthermore, the high-availability technology of our newest NCR SelfServ ATMs means that NAB customers enjoy a significantly improved and consistently reliable experience.”
 
Ross Checkley, managing director of NCR in South Pacific, adds: “As a sponsor of the Edgar, Dunn study and the world’s number one ATM company for 22 consecutive years, NCR is very pleased to see the report confirm the ATM’s position as an essential provider of customer service.”
 
Lance Blockley, managing director of Edgar, Dunn & Company, concludes, “Our study highlights the role of the ATM as a provider of customer service and a highly visible flag bearer of banking brands.  Much more than just a cash dispenser, the more than 25,000 ATMs in Australia play a central role in consumers’ financial lives.”
 
About the study
The Australian ATM Market Study, conducted by Edgar, Dunn & Company, is the first comprehensive study of its kind to be conducted for the Australian ATM industry.  The study provides a detailed overview of the ATM market in Australia, analysing trends and issues as well as insights into industry structure, benchmarks, economics and market projections.  The 18 subscribers participating in the study represented: 87% of the 851 million cash withdrawals completed during the year to 30 June 2008; and 74% of the 25,658 ATMs deployed in Australia as at 30 June 2008.  The study was sponsored by First Data, NCR, ITS, Wincor Nixdorf, Cuscal and Diebold.  Copies of the study can be purchased at www.edgardunn.com .
 
About Edgar, Dunn & Company
Edgar, Dunn & Company (EDC) is an independent global financial services and payments consultancy.  Founded in 1978, the firm is widely regarded as a trusted advisor to its clients, providing a full range of strategy consulting services, expertise and market insight.  Global capabilities include in-depth industry and consumer benchmarking, strategy, risk management, marketing, profitability improvement, operations, and new products and technologies.  With offices in Atlanta, Frankfurt, London, San Francisco, Singapore, Sydney and Paris, EDC serves clients in over 35 countries on six continents. More information can be found at www.edgardunn.com .
 
About NCR Corporation
NCR Corporation (NYSE: NCR) is a global technology company and leader in automated teller machines, self-checkouts and other self- and assisted-service solutions, serving customers in more than 100 countries.  NCR's software, hardware, consulting and support services help organizations in retail, financial, travel, healthcare and other industries interact with consumers across multiple channels.