Insights

CONNECT Magazine

Page 2 – Stuart Mackinnon introduction 

Welcome to the first issue of CONNECT magazine as NCR Atleos. 

While our name may have changed, our focus remains the same: putting our customers first every day and driving innovation in self-service banking.

I’ve been fortunate to get on the road meeting our customers at industry events in recent months, including the Retail Bank Transformation in London and ATMIA in Las Vegas. It was clear from our discussions that financial institutions across the globe are still very much focused on expanding access, optimizing the branch and improving operational efficiency. 

We have built NCR Atleos around solving these challenges. Because of our singular focus on self-service banking, our industry expertise and experience, our global ATM network and our unmatched scale in global services, we have the solutions to help you transform your business to meet ever evolving consumer demands. 

In this issue of CONNECT, we’ll introduce you to our new executive leadership team. Then we’ll explore the impact AI could have on financial institutions, look at how the self-service channel is transforming for a digital first world, hear how Fintech Scotland is driving innovation through collaboration and the importance of ATM security. 

Best wishes, 

Stuart 

Patty Watson AI article (almost final) 

TITLE: Transforming the self-service channel for a digital-first future

It’s a burning question among FIs: how are my competitors keeping their ATM networks relevant?  As consumers turn more to digital and self-service channels to meet their everyday banking needs, FIs are laser-focused on delivering the best-in-class experience today’s consumers expect. This focus is driving a seismic change in how they deliver frontline services to their customers in the most cost-effective ways.

With that in mind, we in turn are laser-focused on ways to support FIs in transforming their ATM channels to provide the best experiences for these digital-first consumers.  

Modernizing the technology stack to extend transactions and services for the consumer

With advanced enterprise software, FIs can evolve their ATM channels from processing only basic transactions to complete fulfilment by taking advantages of the services available on digital channels and in the branch. By extending integration in the enterprise, using APIs and modern protocols such as ISO20022, FIs can connect the ATM to a full set of branch and digital banking services without the traditional restrictions of legacy ATM rails. This modernization can include direct connection to the core banking system, connection to open banking and to third party services beyond the bank itself. The result is a consistent and comprehensive banking service delivered wherever the consumer happens to be.

Optimizing cash 

FI are also increasingly focused on improving efficiency and reducing expenditure. One area of focus is the operational efficiency of the cash supply chain. Any easy way to accomplish this is to reduce cash replenishment, but you don’t want to risk your ATMs running empty. Managing cash on a spreadsheet isn’t the answer. It’s a complex science that needs a specialist solution, especially when embracing cash recycling technology. 

A specialized cash management and optimization solution can automate cash forecasting with accuracy and repeatability. It can optimize the forecast against known business rules and constraints. This can generate the best and most cost-effective cash delivery and collection schedules, keeping cash supply costs to a minimum while ensuring that cash is available to consumers whenever they need it. 

Cash recycling hardware can further improve the impact of cash optimization, which takes notes that have been deposited and reissues them in cash dispense transactions. Cash recycling ATMs are a fast-growing area of the ATM industry because they can help minimize cash replenishment needs. 

Having the right presence is key

As we drive consumers to do more through self-service, it is key for FIs to have the right technology available at a time and place convenient to consumers. Interactive services technology empowers consumers to transact on their own terms. It does this by providing more convenient access to tellers outside restrictive branch hours and allowing consumers to do more of their banking on a self-service basis. It even lets them call for assistance when needed or for more complex transactions. 

Having the right self-service technology for your customer base is vital. For example, if you’re located in a retail center, it’s important to be able to offer coin deposit and collection solutions, pre-staged transactions and bulk collection. For small business owners in your customer base who don’t want to take time out of their day to stand in line in the branch, these services are a crucial lifeline.

Extending self-service capabilities through a modernized infrastructure

Modernizing the tech stack is a critical part of extending the transactions and services that are available at the ATM and ITM. With advanced enterprise software, FIs can take their self-service channel from basic transactions to a mini branch. A core focus for IT providers is enhancing this offer to further integrate the physical and digital channels with assistance-on-demand technology. This way, customers can seamlessly connect their own devices to an FI’s infrastructure and speak to the remote teller via their personal device, while also completing a transaction or service at the ATM. With a greater transaction and services set, customers can complete more of their financial needs and FIs can deliver more convenience and transfer traditional teller activities like bulk cash collections to self-service.

While there is no magic formula, putting the customer first and enabling them to bank at their convenience when and where they choose is critical. If done right and with the right technology in the right locations, these goals can be achieved without sacrificing business efficiencies.

TITLE: Meet the NCR Atleos leadership team 

See ppt

TITLE: Scotland––shaping the future of financial services through innovation and collaboration

Nicola Whitton (use header, job title and photo from last issue)

In the ever-evolving landscape of finance, technology is playing an increasingly pivotal role in shaping the future of financial services. Scotland continues to emerge as a global hub for this financial technology revolution. With its dynamic ecosystem, driven by a collaborative spirit, Scotland has become a hotbed for innovation in the financial services sector. 

In particular, FinTech Scotland is focused on accelerating and deepening the connections between the larger financial service institutions and fintech startups. The approach is leading to more partnerships, enabling the large institutions to embrace the innovation and agility that fintech offers. The results are enhancing customer engagement, enabling greater operational efficiencies and creating opportunities to safely test and experiment with new emerging technologies. It’s a bold and open approach, creating opportunity and accelerating technology adoption.

FinTech Scotland: a hub of innovation

Scotland’s rich heritage in financial services, coupled with its thriving technology sector has created a fertile ground for innovation. FinTech Scotland, a collaborative initiative launched in 2018, has been instrumental in driving the change.

FinTech Scotland brings together fintech startups, financial institutions, academic institutions and the public sector to create an ecosystem that supports and accelerates the growth of the fintech industry. Known as the FinTech Scotland Cluster, these collaborating stakeholders create a platform for knowledge sharing, networking, action and change.

Partnerships fueling innovation

The collaboration between large financial services institutions and fintech startups is at the heart of Scotland's fintech success story. These partnerships are driving innovation in financial services, including,

Digital transformation: Large financial institutions are partnering with fintechs to embark on digital transformation journeys, modernizing operations, enhancing customer experiences and reducing costs.

Access to new technologies: Fintechs specialize in emerging technologies like AI, cybersecurity and blockchain. Their expertise is invaluable to established institutions looking to adopt new technologies.

Enhanced customer experience: Collaboration with fintechs allows financial services firms to offer improved customer services and experiences that cater to the digital-savvy consumer.

Regulatory change: Fintechs help navigate complex regulatory landscapes, reducing operational costs and risks.

What does good collaboration look like in practice and how is it delivered in Scotland? 

Real change and collaboration go beyond just financial institutions and start-ups working together. It requires trust and enabling principles such as learning and mutual benefit. With these principles in place, the environment enables the sharing of real business needs and problems, which when coupled with dedicated programs and initiatives foster innovation and change.

The simple approach that is achieving incredible results starts with true understanding of a business problem. By crafting that business problem into a ‘problem statement’ and sharing it through an open call for innovation called “Innovation Calls”. These calls invite applications from those with ideas, solutions and new perspectives to participate in a mutually beneficial program.

The concept of Innovation Calls was launched to provide a way for large institutions to explore ways to adopt technology, advance their customer proposition, look at changes to business operations and learn about the developing capabilities in fintech across the country. 

In practice, the Innovation Call has started to shape a new way of working between the established financial services sector and innovative fintech enterprises. It’s both a powerful mechanism for financial institutions to engage with the broader fintech ecosystem and a critical opportunity for innovators to learn about real market needs––so the industry can grow and future services can accelerate. It’s driving forward the future of financial services in Scotland and across the UK, using the Innovation Call as one approach to search for new partners, scan the horizon for new ideas and bring new perspectives into the future of finance.

The approach benefits both sides: financial institutions gain access to fresh ideas and innovative solutions, while innovators get a platform to showcase their expertise and potentially secure support and resources for their projects. 

Two examples in practice include Lloyds Banking Group (LBG), one of the UK's largest financial institutions, and its Launch Program and TSB, another UK retail bank, with its TSB Labs program.  Both follow similar approaches and work in collaboration with FinTech Scotland to invite fintech innovators to collaborate. 

LBG Launch – accelerating innovation

1. Problem statements: Specific challenges are identified with a focus on advancing services, enabling operational efficiency and supporting wider financial services sector. These problem statements are refined and shared in an open call inviting worldwide fintech applications.

2. Collaborate to innovate: Fintech startups and innovators are invited to submit proposals to address the problem statements. This encourages open collaboration and creativity. The opportunity for smaller businesses is considered from the outset and range from access to deeper insights into the industry, through to direct mentoring that helps create a market-needed product, and of course a commercial opportunity to partner with the firm, should the solution be right.

3. Support and resources: The program considers the support and resources needed to take advantage of the call to action. Mentors and leaders are engaged within the firm; all come with a growth mindset and a willingness to learn and support innovation. Applications are assessed and the selected participants receive support, mentorship and access to launch resources. As solutions develop, there is also opportunities for piloting within the organization.

The launch program not only provides a platform for innovators to develop propositions, it’s a great example of how large financial institutions can actively engage with the fintech community to drive innovation within their own operations.

TSB Labs – Problems into purposeful partnership

TSB Labs is an initiative to work with fintechs and tech companies to develop new customer-focused solutions. The success of the program stems from its engaging approach: 

1. It starts with problem solving: TSB Labs invites fintechs and startups to solve specific challenges faced by the business, focusing on improving customer experiences and delivering innovative solutions.

2. It progresses with purposeful collaboration: TSB Labs hosts collaborative workshops that bring together fintech innovators and TSB experts to ideate and prototype solutions.

3. It concludes with partnerships: selected participants receive support to develop their solutions and gain valuable insights into the financial industry.

Success comes in all shapes and sizes

Experience is showing the power of the Innovation Call. Lloyds Banking Group Launch Program has resulted in the firm working with over 30 fintech innovators. Meanwhile, TSB Labs has created meaningful fintech partnerships that are giving customers greater flexibility and more options on issues such as climate change and building financial resilience. 

These platforms have found fresh perspectives, changed mindsets and enabled more responsible innovation. As the fintech ecosystem continues to evolve, initiatives like these will pave the way for innovative solutions that benefit both the financial industry and consumers. 

The future of financial services is being shaped by the synergy between tradition and innovation. Scotland's commitment to fostering such collaboration underscores its position as a global innovator focused on shaping a digitally enabled future financial services sector that works for everyone.

Get in touch and come join us! 

TITLE: Putting the customer first with Interactive Technology

North Shore Bank Logo

In 2023, North Shore Bank, located in Wisconsin, USA, celebrated serving its community for a century. 

So how does an FI celebrate this massive milestone?  By showcasing some of the latest interactive services technology and bringing a celebrity sports star to serve their customers for the day.  

We talked to Susan Doyle, Head of Retail Banking and Maria Baulmer, Area Manager, to find out more about North Shore Bank’s role in the community and the impact interactive technology has had on their business model.

Q: Who is North Shore Bank?

A: We are a longtime community bank––we celebrated our 100 years in 2023.  Our customers rely on us for high-touch service and we take pride in that.  

Q: How important is the self-service channel in delivering value to your customers?

A: As we all know, self-service channels give consumers ways to bank how and when they want, which in turn helps North Shore Bank acquire and retain relationships. We deployed the video teller technology to help customers extend their banking access to seven days a week and it’s been a huge benefit to our brand––and a wonderful benefit for customers, because they can do things at their convenience!

Q: How does Interactive Services address staffing issues?

A: The interactive technology lets North Shore Bank offer access to tellers 7 days, 70 hours a week. It’s great for employees and offers them a great work-life balance.  It allows North Shore Bank to find the right employees and the employees to find the right employer.

Q: What made North Shore bank consider interactive technology?

A: We looked at the technology a couple of years before we first deployed it. When the opportunity was right for the bank, we put it in place and grew from there. We started with one branch and now almost three quarters of our branches have the technology. It has helped us reimagine our branches: we now have a group of tellers that service multiple locations, processing around 30% more transactions than a branch does.

Q: How did ITM technology help showcase your centenary celebrations? 

A: It helped us connect with customers through acts of kindness. One area we focused on was actually a showstopper––with Pat Connaughton from the Milwaukee Bucks becoming a video teller for a day. He interacted with our customers and team members and gave away $100 to our customers.

Q: What role do you see the branch playing in the future?

A: We believe in our branches, but we invest in both branches and technology.  The branch has become one of our biggest branding assets. We know that customers still choose to use the branches particularly to open accounts, for example. Perhaps surprisingly, our youngest Gen Z customers, the most digitally advanced age group, prefer to open their first accounts with us in person––they choose that personal interaction at the branch for this type of activity more than any other generation. 

Q: Does the ITM play an important role in your future?

A: Our ITMs are a big part of North Shore Bank. Technology is a big reason North Shore Bank has been around for 100 years and will be around for another 100. To be able to say you work for a bank that’s been around for 100 years is amazing! When customers see events in the news about banks collapsing or they’re nervous about what’s going on in the economy, they can walk right in or use our drive up and get a great smile from a North Shore employee––either remotely or in person. We’re proud and happy to be here!

Country focus: 

TITLE India––a leading light on the digital journey

With a population of more than 1.4 billion and a growing economy, India is now the fifth largest economy in the world––and inching towards becoming the third largest. Information technology and banking are the leading industries in the thriving the Indian economy, home to one of the youngest working populations in the world.

As a nation, India has led the way in digital adoption. Whether it’s government affairs or banking, digital is embedded in the fabric of the society.  

COVID-19 showed how impactful digital adoption can be. While many countries in the world were struggling to get vaccination to every citizen, India not only produced vaccinations for the world, it also digitized the vaccination record. Through its government-run app “Aarogya Setu”, citizens could access their digital vaccination certificates. 

In banking, National Payments Corporation of India (NPCI) pioneered the Unified Payment Interface (UPI) which now leads the world’s digital payments space. Indeed, in 2022, 45% of the world’s digital transactions used UPI. 

India continues to push the digital boundaries to connect its digital and physical infrastructure, recently launching the first UPI connected ATM. 

Growth in digital transactions

In 2016, when the Indian government took a major decision to demonetize its two largest currency notes––500 and 1000––it significantly impacted the adoption of digital payments. Despite accounting for 85% of cash in circulation, the loss of these key notes saw digital adoption increase. Consequently, digital payments apps have made use of UPI to extend their offer to include financial services. Now, even small vegetable vendors and Wad Pav vendor earning less than $50 a day have UPI payment enablement for their businesses! 

But cash is still key

Despite the growth in digital payments, cash still remains a critical payment method in India. Indeed, despite predictions of cash becoming obsolete, cash in circulation grew by a significant 8% in 2023 according to the Reserve Bank of India (RBI).

As India’s economy develops, access to cash and financial services is growing in importance––with a correlating rise in ATM growth. India’s ATM-per-million-population is much lower than other countries but the RBI is spearheading an initiative to increase financial access in small towns and rural communities. This has led to a new era of banking services, with new finance banks, payment banks and neo banks entering India’s banking sector to increase the financial reach to the masses.

India has also initiated an interconnected ATM network by connecting all ATMs through NPCI to their NFS network. This makes it simple for any bank cardholder to withdraw fee-free cash from any bank ATM (typically up to four transactions per month).

Growing the economy

The Indian government is focused on further growing the economy. Its initiative, “Make In India” has had a huge impact on the country’s manufacturing sector by increasing youth employment. Policy changes have improved the ease of doing business. New business approval processes have been expedited, increasing large-value Foreign Direct Investment (FDI). Domestic companies have been encouraged to invest and expand through performance-linked incentive schemes. 

Online retailers like Amazon and Flipkart are disrupting India’s traditional independently owned retail sector while app-led food delivery companies with cloud kitchens are competing with traditional restaurants. India is embracing the opportunities of e-commerce and, through its open network for digital commerce (ONDC), is helping to create an inclusive ecommerce ecosystem for the masses.

With these multiple growth agendas, India is thriving. The country is on target to become the third largest economy in years to come and banking is the ultimate beneficiary in this growth journey. India is pioneering innovative digital technologies to seamlessly connect different industries and infrastructure, driving choice, efficiency and prosperity.

TITLE: Ensuring resilient security parameters with ATM as a Service

See ppt

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