Ending channel fragmentation and building trust through vertical integration

January 2026

In today’s financial landscape, trust is the ultimate currency, yet many financial institutions (FIs) still rely on fractured, multi-vendor systems to deliver core services like the ATM channel.

The traditional approach of managing ATM operations—piecing together hardware from one vendor, software from another, maintenance from a third and cash services from a fourth—invites operational risk and introduces instability.

When solutions aren’t integrated and delivered through a seamless chain of building blocks, quality control slips while resilience against external factors diminishes, ultimately causing the end-user experience to suffer.

This fragmented model forces executives to make significant, disruptive long-term investment decisions while juggling seven or more vendors. This complexity creates an operational environment where the Total Cost of Ownership (TCO) is unpredictable, performance is difficult to sustain, and valuable staff resources are constantly diverted from working on strategic goals toward day-to-day firefighting.

The concept of outsourcing ATM operations is not new; rather, it is an increasingly popular shift from a vendor-centric approach to a strategic partnership model. FIs are recognizing the benefits of offloading these operational complexities and moving toward a solution that offers predictability, simplicity and unmatched reliability.

Risk multiplied by fragmentation

The term "ATM as a Service" (ATMaaS) is common, but its definition varies widely. Many providers offer partial solutions, often resulting in a FI simply hiring a contract manager who outsources management to multiple subcontractors.

This outsourced fragmentation is where the operational risk multiplies. Because these providers lack the capability in-house, they become mere contractors, inviting significant risk into the operation. When multiple companies come together to deliver a single outcome, accountability is diluted and governance becomes complex. Furthermore, FIs risk becoming a "controlled deployment" or "proof of concept," rather than being added to a standardized, proven portfolio.

True ATMaaS, particularly the NCR Atleos solution, is fundamentally different. It is defined by vertical integration—a single, holistic platform where every component is designed to work seamlessly together.

Vertical integration wins

This vertical approach ensures consistency across all critical areas:

• Hardware and software: Every device is engineered and manufactured by NCR Atleos, and the software is custom-developed and tested. The result is a unified, tightly integrated ecosystem, designed to work together for optimal uptime, performance and experience. Finding a partner that has control over the entire lifecycle and solution roadmap is of critical importance. Most outsourcing partners are unable to offer such advantage, meaning you are subscribed to a bundling service, with software retrofitted and potential supply chain issues for servicing
• Monitoring and processing: Proprietary agents are developed and deployed in-house to manage performance. NCR Atleos owns an active-active, fully redundant in-house switch, ensuring transactional security and uptime
• Field services: Over 7,000 in-house Customer Engineers (CEs) are highly trained to service a standardized fleet, minimizing repair time

The result is a solution that is less intense from a day-to-day perspective, allowing the FI to meet evolving customer expectations and focus on innovation rather than spending time managing basic system reliability.

Protecting your uptime

It is critical to remember that ATM as a Service is not simply a bundling exercise. It’s interlocked solutions, people and processes all engineered to work in unison. When you work with an outsourcing partner who does not offer a vertically integrated solution, you risk becoming a non-standard deployment, posing grave risk to availability and your customer experience.

The vertically integrated model transforms operational efficiency, making ATM uptime a core element of your customer experience and brand reputation. When core components of your service are manufactured and designed to work as one, the resilience of your channel is protected.

Furthermore, when you can tap into the organizational depth of an outsourcing partner like NCR Atleos, where teams and systems are scaled to support fleets of all sizes, including our own— the world’s largest ATM network—you can gain peace of mind that your brand is in the hands of the experts.

The Power of One

One of the most compelling strategic benefits of the ATMaaS model is the shift in financial management. The capital-intensive traditional model (CAPEX) is replaced by a simple, predictable monthly fee (OPEX). The TCO does not change from year one to year six, simplifying executive reporting and budgeting.

FIs benefit from the Power of One—one contract, one agreement, one network and one point of contact. This removes the vendor management burden and allows FIs to reallocate internal resources to growth and strategy. By partnering with an ATMaaS expert, FIs regain control over their strategic direction.

The future of self-service

The global push toward modernizing self-service is clear. By choosing a truly vertically integrated partner, FIs are not just buying a service; they are controlling the risk of fragmentation. They are maximizing availability, simplifying costs and protecting their brand.

The goal is clear: transforming the ATM channel from a complex, capital-intensive necessity into a strategic driver of customer satisfaction and operational excellence. By eliminating complexity through vertical integration, FIs can finally deliver a critical service built on a foundation of unshakeable trust.

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