The Perspective 
Tuesday, 23 February 2010
In his presentation at DSE’s DOOH Advertising Summit on Tuesday, the Imperative Group’s Chris Heap presented the following real quotes from viewers, which he labels the “Seven principles of success for digital signage.”

1. Don’t make it hard for me to watch you.
2. When I do watch you, show me something relevant to me.
3. Save me money.
4. Save me time, don’t waste my time.
5. Help me make better decisions.
6. Tell me something new, innovative and interesting.
7. Give me ideas.
Posted by: BIll Yackey AT 12:08 pm   |  Permalink   |  0 Comments  |  
Monday, 22 February 2010
Despite relatively low temperatures in Miami this week, the ATM Industry Association’s annual U.S. conference is proving to be a hotspot for ATM deployers. Show organizers said this morning the association is raking in record attendance numbers, with more than 700 attendees and reps from exhibiting companies, as well as a record number of sponsors.
The show floor is abuzz with energy and excitement about new financial channels, including mobile. How ATMs and the mobile banking or mobile payments channel will or can complement each other is a focus at this year’s event. It’s also a topic is following closely. Today launches its BankingMobile Twitter account, which you can follow @BankingMobile. sees a strong interest in mobile banking. It’s the reason we launched our Mobile Banking Research Center over the summer, and the reason we plan to continue covering the mobile channel more closely over the course of the next several months.
Yesterday in Miami, the topic of mobile was key for ATMIA’s new International Payments Forum. Led by Lyle Elias, a former ATMIA board member, the forum is expected to make mobile one of its focal points for 2010.
How mobile will affect the ATM industry remains to be seen, but ATMIA says it wants to be at the forefront.
It’s an interesting issue, since the use of mobile banking technology could bypass the ATM. I don’t foresee that happening anytime soon. In fact, I see the two channels as being complementary.
Granted, mobile should be perceived as a so-called disruptive technology; but as anyone who follows technological breakthroughs knows, disruptive technologies always open doors to unforeseen possibilities. In the ATM industry’s case, I expect the mobile channel leading to new transactions — and we’re already seeing evidence of that.
The world’s top ATM manufacturers in the financial-institution arena — Diebold Inc., NCR Corp. and Wincor Nixdorf AG — have all taken strong interests in mobile. All three have deployed solutions, with help from mobile partners such as ClairMail, mFoundry and Sicap (announced this week) that connect the ATM with mobile options. But, like the rest of us, they’re feeling their way through the changes mobile banking and payments could bring.
I’ll be covering some of the technology from the road in Miami, paying close attention to what mobile banking means for security, payments and the future of the ATM.
As we delve more deeply into the coverage of mobile banking, more questions rise to the surface: Who will lead the charge — FIs, telcos or Internet service providers? How secure are mobile transactions, and who, ultimately, is responsible for ensuring the transactions are safe? Who will set best practices?
ATMIA is working to tackle some of those issues, but quite a bit remains to be seen.
Posted by: Tracy Kitten AT 12:52 pm   |  Permalink   |  
Thursday, 18 February 2010

At my recommendation, EnQii committed its time and money to join the DSA shortly after the association was formed. At that time, I was skeptical about an association that was being supported by a for-profit business, NetWorld Alliance, and at my first DSA meeting I raised my hand and asked in my NYC blunt style to show me that although the organization was not a 501(c) that it was operating as one. 

Not only did I get a straightforward “no BS” answer but also a walkthrough of DSA finances. I was convinced. Also, along the way, I developed a great deal of respect and gratitude toward NetWorld, their leadership and the opportunity they were offering the industry by incubating a true association for the burgeoning digital signage industry. 

A few months later I raised my hand again, this time to be considered for the role of association president. Immediately in this capacity I started discussions, which soon turned into planning sessions, on how to get the DSA standing on its own two feet and be the true voice of the industry and its member companies, all constituencies and from all geographies. 

The first step was to ensure that we had a strong value proposition that resonated with the members and drew in membership. In two short years, we are now 420+ member companies strong. Second, but concurrently, we needed to move on a path to establish legal independence as a 501(c) not-for-profit organization. Inextricably linked to independence is the need to identify revenue sources so that (1) You can channel that money back to industry and member directed programs, and (2) You can maintain membership fees an affordable level so the association is accessible for all.

I am very proud to report that this goal is coming to a significant milestone this coming Tuesday, February 23rd, when the Advisory Board is voting on proceeding with the filing of our 501(c)(6) status, and send out a request for proposals from trade show management companies to partner with the DSA on management of an industry trade show.  

The NetWorld incubation era is coming to the close and the DSA, and I believe the industry, should be extremely grateful for their leadership and vision. The Digital Signage Association is something we should all be proud of and rally around to support the advancement of its pure mission, "To accelerate the growth and advance the excellence of digital signage deployments worldwide." 

If you are part of the DSA, continue to participate as you have and by helping to “raise the industry tide, your boat will rise as well.” If you are not part of the DSA, then do as EnQii and 400+ companies have done - get involved and become part of an exciting movement as we work to make it a healthy and sustainable industry. 

If you are going to DSE, please stop by the DSA Booth #1113. Also if you have any questions or comments, please feel free to reach out to me.

Posted by: Stuart Armstrong AT 12:57 am   |  Permalink   |  0 Comments  |  
Tuesday, 16 February 2010
Research shows that digital out-of-home is a growing medium, but when compared against total media spending, including TV, print and Internet, it still has a long way to go in order to become a bigger piece of the pie. However, several trends in this space are setting it up to be competitive in the years to come. Here are three things that will strengthen DOOH CPMs going forward.
1. Supply and demand. Unlike the Internet, digital out-of-home is a finite media model. There are only so many screens and so much time in the day to run ads on them. If the network is 100 percent sold out, then it’s not charging enough and should charge more.
While the total available screen space in the world is no where near being filled, there’s a chance it may be in the future as the medium catches on. Then, the power of “naming the price” will fall into the hands of the DOOH network owners, where it had traditionally been with the ad agencies and media buyers.

2. Ease of purchasing One of the reasons that demand doesn’t exist yet is because up until this point, planning, measuring and purchasing a DOOH campaign has been for media buyers. They want to buy audiences, not screens, and trying to place ads across multiple networks can be a planning and billing challenge.
In order to simplify the process, several aggregation companies have emerged to facilitate the sale of DOOH advertising based on audience demographics and location rather than individual networks. Adcentricity represents over 80 network partners with over 140,000 screens covering 16 main venue categories. SeeSaw Networks creates “life patterns” like “mobile millenials” and “alpha moms” and aggregates more than 50 networks to target them. And rVue acts as an advertising exchange platform for about 50 networks.
Even NEC Display Solutions, traditionally a screen manufacturer, got into the aggregation business last year when it released VUKUNET, a software platform designed to be a universal aggregator of all signage networks.  
These software tools allow advertisers to target specific demographics all the way down to the local level, thus raising the CPM for those networks.
3. Interactivity New technology in the DOOH space will allow users to interact with messages, not just be passively exposed to them. The change will create more meaningful contact, which can be leveraged for a higher CPM.
Consider what Rob Gorrie of Adcentricity calls this the CPM+ model. They work with Ecast, which has digital jukeboxes equipped with screens in entertainment venues. One has the ability to run a passive ad as part of the attractor loop, but can also run an interactive application that is designed to gather information like mobile phone numbers and email addresses.
Interactivity such as this allows networks to move from a cost per impression unit to a cost per acquisition (CPA) or cost per engagement (CPE) pricing model, where they can charge much more for ads that guarantee user interaction and information.

Buying Model
Cost per thousand impressions
Cost per acquisition
Cost per engagement
Agree to rate on guranteed impressions by size and placement
Agree to rate on desired transaction (sale, coupon download, cell phone number
Agree on rate to pay only when user interacts with ad unit.

This chart was developed by NEC Display Solutions and used in the webinar "The impact of digital out-of-home on digital signage."

Posted by: Bill Yackey AT 12:09 pm   |  Permalink   |  0 Comments  |  
Tuesday, 16 February 2010

Sometimes you can't win for losing.

Despite contentions that the company was going to face questions "they won’t be able to work around" after last week’s announcement of its Q4 2009 financials, redbox parent Coinstar Inc. met Wall Street expectations thanks at least in part to the growth of its DVD-rental business, according to Reuters.

But stock prices dropped about 5 percent in after hours trading that night, apparently based on fears that its workaround efforts bypassing the movie studios' — and now retailers' — embargoes aren't going to be as successful as the company says they will be.

The Bellevue, Wash.-based Coinstar, which also makes coin-counting machines, said it rolled out nearly 9,000 DVD-rental kiosks last year.

Net Q4 income attributable to Coinstar was $5.5 million, or 18 cents a share, versus $4.2 million, or 15 cents a share, in Q4 last year.

Excluding a non-cash goodwill impairment charge, the company earned 32 cents a share, meeting analysts' estimates, according to Thomson Reuters I/B/E/S.

Coinstar saw revenue rise 44 percent to $328 million. DVD revenue grew 73 percent to $231.8 million.

The company forecast fiscal 2010 revenue in the range of $1.47 billion to $1.57 billion, largely in line with analysts' estimates of revenue of $1.50 billion.

The company forecast factors in costs associated with its planned kiosk installations, about a third of which are scheduled for the first quarter.

Video Buyers Group president Ted Engen, who last year was quoted in the New York Times saying, "these machines are to the video industry what the Internet was to the music business — disaster," about the redbox kiosks, said earlier this week that he expected redbox and Coinstar to face tough questions after the release of its financial results, according to Home Media Magazine.

Coinstar says it's still able to get feet on the street to work around the latest wrinkle in the embargoes, Target and Walmart implementing temporary purchase limits on new release DVDs, but some investors and analysts are shying away anyway, evidenced by some degree of selloff and a drop in stock prices despite earnings and forecasts that met expectations.

According to Barron's, Brigantine Advisors analyst Steven Frankel has changed his rating on Coinstar stock from 'buy' to 'hold,' as he awaits "signs that margins have bottomed and that the company can put its disputes with the studios behind it."

The cost of redbox's workaround obviously is affecting its margins, Frankel pointed out: gross margin fell to just under 16 percent last quarter from well above 17 perecent in the third quarter, and nearly 19 percent a year ago. Frankel estimated the extra effort of securing DVDs from retailers — even before Target's and Walmart's changes of heart — adds $1-$3 to the cost of each disc.

"The company needs to put these issues behind it and agree to some sort of revenue sharing/rental window," he wrote. "Without such an agreement, margins are likely to remain under pressure, as the workarounds only get more difficult as the size of the installed base of kiosks grows."

Rumors have swirled for about a month or so that the company might be working on just such an agreement, but its litigations against the three big studios embargoing it continue to move forward — and some analysts debate just how much such a window would really end up costing redbox. (Some say up to 35, or even 50, percent of its business?)

So 2010 continues to look like an interesting year for kiosk and movie industry watchers, as the fight between redbox and the studios drags on.

Posted by: Christopher Hall AT 07:58 am   |  Permalink   |  0 Comments  |  
Thursday, 11 February 2010
Timeliness of messages and availability of your intended audience may be the most fundamental reasons digital signage is effective.

Two of the most basic reasons digital signage makes sense as a communications medium are its timeliness and availability.

In terms of timeliness, short of actually telling someone something face to face in a place of business, there may be no way to communicate more quickly with your co-workers, employees or customers than digital signage.

With digital signage, the time between actually conceiving a message and delivering it can be measured in seconds in many instances. When used properly, tapping into this extraordinary advantage means digital signage content will be fresh and relevant, both key factors in attracting and holding the attention of an audience.

When it comes to availability, digital signage may even have face-to-face communications in a business setting beat. Because the location of digital signs should be strategically chosen before a single message is ever created, they can be located where they are most available to their audience. For example, imagine a lunch room in a manufacturing plant, a break area in a mechanics shop, suspended from a ceiling above a production line. Each of these locations makes communicating some messages to employees much easier than finding an employee or group of workers and having face-to-face conversations.

Taken together, the timeliness of digital signage message and their availability to employees can be leveraged to improve productivity, enhance safety performance and even to boost sales.

I am familiar with one factory manager who regularly updates production figures on the company's digital signage network to inform his workforce about how well they are doing in meeting production targets. Given the ability of digital signage systems to tap into databases, it is possible for this manager to keep groups of workers apprised of their performance as data is updated in the database the company uses to track production.

Similarly, in some sales settings, digital signage is an effective way to encourage production, recognize performance and reward success in a public way that taps into the competitive nature of many sales people.

Customer service and support, too, can benefit from the addition of digital signs to help employees at a single glance keep track of wait times, percentage of problems resolved, open tickets and even customer satisfaction.

Businesses should also consider tapping into the timeliness and availability digital signage offers when it comes to safety. Not only can digital signage networks offer admonitions aimed at keeping the workplace safe, they also can be used to remind employees of their ongoing safety record.

Equally important in that regard is the ability of digital signs to offer timely emergency messaging to a workforce spread out through a factory or corporate campus. Potentially lifesaving warnings and emergency information can be communicated in seconds during severe storms and tornadoes and when other hazards may occur. Modern digital signage can even tap into public address systems to mirror an audible warning with visual emergency information. This can go a long way to meeting various disability requirements in work or public places.

There are many reasons digital signage makes sense as a communications medium, but none may be more fundamental than its ability to serve up timely information -be it production figures, customer service wait times or even warnings of a threatening storm- where that information is most available.
Posted by: David Little AT 08:00 am   |  Permalink   |  0 Comments  |  
Wednesday, 10 February 2010
Last week, in a post titled “Getting The Message,” we discussed how three forces appear to be engaged in a battle for the hearts, minds and wallets of the digital signage marketplace. The unstated thesis of the post was that marketing dollars are likely to have a greater influence on buyer and investor perception of our still-young industry than unbiased analysis or hard-earned lessons from insiders. That was not a gripe: after all, you get what you pay for in this world. In any event, the post closed with a call for industry leadership and standards, without which we risk allowing the marketing machines of giant technology companies and advertorial publishers to define the industry and its priorities. In my mind, allowing that to happen would be a disaster.

The post, and in particular the call for leadership, opened a discussion regarding the Digital Signage Association (DSA), its work, organizational status and future. When writing the post, I had contacted David Drain, Executive Director of the DSA, and asked if DSA was a 501(c)(6) tax exempt, non-profit association. I knew that in fact it was not, which David confirmed. I chose not to open that can of worms in the post, because it deserves its own post, and a more detailed discussion with David out of courtesy. At this point, the discussion has been had, and this is the post.

Before entering the digital signage industry in 2004, I spent most of my professional career as a retail IT consultant, first with a Big 6 firm, then my own firm and subsequently with a public entity. In the course of those years, I was exposed to many industry associations: The National Retail Federation, the Direct Marketing Association, the Food Marketing Institute, the National Association of Chain Drug Stores, the National Association of Convenience Stores, and the International Mass Retail Association (renamed RILA in 2004). I was engaged on projects by both DMA and IMRA, have attended more conferences than I can remember, and presented at many. I came to appreciate that these associations are examples of effective voices and leaders of their industries. They have wide and deep support of suppliers, users and constituent companies. They provide advocacy, education, leadership on standards, and many member services. They have their own conferences, which provide a venue for all of their agendas and supplemental revenue to make them possible. Some have their own magazines that provide monthly or quarterly touch points with their members. Visit the links above and get a flavor for how those associations operate and serve their industry. Digital signage as an industry needs that kind of organization to take its next important steps forward. And to their credit, I think it is fair to say that DSA’s own leadership knows this. Getting there is the challenge.

DSA, established in 2007, is a part of NetWorld Alliance, a for-profit media company focused on B2B communications. To be fair, in 2007 and probably until now, a standalone non-profit association was probably not feasible in our young industry. NetWorld took the initiative to get the ball rolling and has underwritten (and presumably benefited from) the growth of the DSA. Under NetWorld’s auspices, DSA has accomplished many positive things. However, the call to separate DSA from its for-profit roots is out there, and it seems to be the correct call at this point in time. Here’s why: A true advocate must be independent. A true neutral advocate cannot have a web site plastered with advertising, or share resources with a sister industry web portal business (Digital Signage Today) that only allows external hyperlinks to paid advertisers in its content. To be clear, DST can and should have whatever editorial and advertising policies it wants (even bad ones like the link policy), but DSA’s relationship to it undercuts their desired position as a neutral advocate and leader.

There are over 400 members of DSA today, and room for aggressive recruitment of many more. Part of the recruitment drive should be fueled by a new vision of what the DSA is going to be. Until DSA is split from NetWorld legally and organizationally, it will not achieve the type of presence and leadership that other industry associations have achieved. If getting to that level is not their goal, it will open the door for another entity to step through and make it happen.

In 3 weeks, most of the people reading this post will converge upon Las Vegas for the largest trade show in our industry, the Digital Signage Expo. Six weeks later, back in Las Vegas, and again in November in New York, The Digital Signage Show will also offer great venues for education, selling and networking. DSE and TDDS are run by terrific companies with great people and both provide important services to the industry. That being said, if a non-profit association is to emerge as the linchpin of the industry, it will be absolutely vital for it be in the conference business. Its conference(s) would be a hub of association meetings, the key event from an educational perspective, and an important source of revenue to advance the goals of the association and the industry. Again, look at the other associations mentioned above. Doing so seems to make it clear that a precursor to an independent association would be development of a plan for owning and driving an industry conference schedule. This would not preclude the existence of non-association conferences, but like anything else, supply and demand will find their balance. In my opinion, an independent association (whether it is DSA or a new entity) would be a non-starter without this vital piece.

Digital signage is experiencing explosive growth, consolidation at many levels, the entry of very large corporations, and the scrutiny of people who don’t necessarily get it or share our enthusiasm for this emerging media channel. We need and deserve a neutral, non-profit industry association to drive education, advocacy, standards and industry presence. The DSA currently has the best shot of becoming that voice of digital signage. If they don’t seize the day, another entity will surely fill the void. Let the discussion begin.
Posted by: Ken Goldberg AT 09:42 am   |  Permalink   |  0 Comments  |  
Monday, 08 February 2010
Much ado was made about NCR Corp.’s under-funded pensions by industry analysts. But NCR beat financial expectations, despite a $56 million net loss, negative 35 cents per share, from continuing operations for the fourth quarter of 2009. Income from operations came in at $39 million for Q4, and included a $41 million pension expense.
The loss — a significant drop from the $55 million net gain, 34 cents per share, reported a year earlier — was fueled by a $151 million ($97 million after-tax) net charge related to the Fox River environmental matter, a $24 million ($15 million after-tax ) impairment charge related to an equity investment and related assets, and $6 million in expenses ($4 million after-tax) related to the relocation of NCR headquarters.
That compares to $7 million of pension expenses and $25 million of costs related to organizational realignment and legal matters during Q4 2008.
Revenue for the quarter was down 5 percent from last year, coming in at $1.35 billion. As of Dec.31, 2009, NCR had a debt balance of $15 million.
Diebold Inc. came out in the black, reporting Q4 income from continuing operations of $7.9 million, 12 cents per share, and revenue of $724.9 million. But net income and revenue were down, 55 percent and 8 percent, respectively, from Q4 2008.
"The economic challenges that 2009 imposed on our business affected our results but did not slow the initiatives we’re putting in place to build NCR into an exciting growth company," said Bill Nuti, chairman and CEO of NCR. "This year we successfully launched our entertainment business, opened new manufacturing plants and greatly strengthened our operating infrastructure. Despite tough end-market conditions, we also finished 2009 on a solid note, exceeding expectations largely due to improvements in our core industries. Taken together, we believe these accomplishments and our ongoing commitment to investing in innovation put us firmly on the path to produce better results in 2010 and make continued progress toward our long term goals."
NCR during Q4 exceeded its goal to roll out the first 2,500 DVD-rental kiosks by year's end. In December, the company expanded its network of DVD-rental kiosks through the acquisition of DVDPlay, an operator of approximately 1,300 kiosks in the United States and Canada. The company now says it plans to convert the acquired kiosks to its BLOCKBUSTER Express brand and has plans to install its BLOCKBUSTER Express kiosks in more than 200 Duane Reade locations in New York. NCR also during Q4 expanded its BLOCKBUSTER Express brand to Tedeschi Food Shops, a 188-location convenience store chain across New England.
NCR also announced a digital download pilot with MOD Systems, which allows users to download movie titles to memory cards.
Like Wincor Nixdorf AG, which reported a 6 percent dip in net sales and a 13 percent dip in profit for the first quarter of fiscal year 2009/2010, NCR and Diebold say the global economic downturn continues to take a toll on ATM and related self-service sales.
"We delivered solid operational results during the fourth quarter, despite a number of challenges the financial industry continues to face," said Thomas W. Swidarski, Diebold’s president and CEO. "In addition to growth in orders and full-year cash flow, we generated improved service margins during the quarter — representing our 10th consecutive quarter of year-over-year improved service gross margin."
Swidarski said that while sales improved across most geographies, Diebold’s business related to bank branch construction in North America has taken a hit.
"To improve our ability to invest in key growth initiatives, we are realigning our organization and resources to better support our opportunities in the emerging growth markets," he said. "Unfortunately, these changes will result in the elimination of approximately 350 full-time jobs from our North America operations and corporate functions. These reductions will be largely completed by mid-February."
NCR’s reported overall revenue for the Americas was down 7 percent. In the Europe, the Middle East and Africa, revenue was down 12 percent, while revenue in Asia-Pacific was up 12 percent.
But the quarter brought with it some highlights. In the financial space, NCR announced plans to equip ING Belgium with at least 1,200 cash-recycling ATMs — the most extensive deployment of cash-recycling ATMs in Europe, according to NCR. NCR also made its two-sided thermal printing technology standard on all NCR SelfServ 20- and 30-series ATMs in North America.
In November, NCR opened its new manufacturing plant in Brazil, the world’s 3rd largest ATM market.
At Diebold, product and services orders for financial self-service and security were up more than 20 percent from 2008, and global financial self-service orders increased more than 40 percent year over year. The company also noted a 40 percent increase in financial self-service orders from Q3 to Q4 — positioning the company for a positive second half of the year, Diebold says.
Orders in Asia-Pacific were up more than 50 percent. In the Americas, financial self-service orders also increased more than 50 percent — orders in Brazil and Latin America offset the double digit decline in North American sales. In Europe, the Middle East and Africa, financial self-service orders were up more than 20 percent, while security orders dropped year over year in the low double digit range. However, security orders were up for the second consecutive quarter.
Diebold’s lottery systems sales in Brazil, which analysts speculated would offset losses in other regions, remains strong, despite an 8 percent dip in total lottery systems revenue in the country when compared with Q4 2008.
Posted by: Tracy Kitten AT 09:29 am   |  Permalink   |  0 Comments  |  
Tuesday, 02 February 2010
I have been invited to speak at this year’s KioskCom/Digital Signage Show in a brand new kind of session. The folks at JD Events have come up with kind of “Meet the Press” session at the show, where marketers and those involved with digital signage communications can meet and question the industry press.

The idea is to help improve communication between the two groups, especially at a time when media is rapidly changing. Internet news, Twitter, Facebook and other social media outlets are changing the way that information is shared, as well as the pace that it comes and goes. News is instant now – therefore any slip ups can become big disasters really quick.

On the other hand, this new type of news reporting allows more information to be shared, and the companies that embrace that are going to reap the rewards. So instead of sending a news release in a word doc, you could send a social media release, complete with images, video and quotes that facilitate the creation of a news story for the digital age.

I’m really looking forward to hearing specific concerns from the marketers and seeing how we can improve communication in the industry. I think there is a lot we can learn from each other.

Here are the specifics on the session:

Say What?  Peeking Inside the Minds of Leading DOOH Electronic Media

In today’s media frenzied world, electronic journalism – columnists, articles and bloggers – often lead the way with industry news insights, analysis and awareness.  With thousands of opt-in followers, these journalists feel the pulse of the industry on a real-time basis – from buyers to sellers, and those who help ensure success along the supply chain.

In this session you will hear directly from leading electronic journalists/bloggers in the DOOH and digital signage space.  They will address a myriad of timely and relevant issues, and provide their unique insight into the good, the bad, the ugly and the exciting world of Digital Out-of-Home (DOOH) Media industry.

 Attend this session and hear:

•    How digital media can improve customer engagement and increase sales lift
•    Examples of successful implementations and their impact on brands
•    Measurement methodology and ROI
•    Successful trends they are seeing
•    Who needs to be involved in the process for success?
•    What makes a project a winner? 
•    What brands and venues can do to succeed though the use of digital signage and DOOH
•    What does the future hold?

Session Chair: Adrian Cotterill, Editor-In-Chief – The Daily DOOH
Panel: Bill Yackey, Senior Editor,

The session will take place on Wednesday, April 14, 2010, from 1:30 - 2:30 pm
Posted by: Bill Yackey AT 12:11 pm   |  Permalink   |  0 Comments  |  
Monday, 01 February 2010
At the helm of the world’s second-largest ATM deployer, Eckard Heidloff is always thinking about ATMs. But he’s thinking about them from a higher perspective these days, understanding where they fit into the overall cash scheme.
For Heidloff, the chief executive of Wincor Nixdorf AG, the future of ATMs will depend on how well connected they are to other channels, how easy they are to use and how well they are managed from a 360-degree perspective. Where the ATM fits into the cash chain is key, he says, and could ultimately ensure a future for self-service as the world evolves toward more efficiency.
The evolution of cash handling in retail environments as well as banks has stagnated. Heidloff says most banks, regardless of how developed the markets in which they reside may be, have not for the last 50 years changed the way they deal with cash. Heidloff says Wincor Nixdorf expects to change that.
“One-third of a bank’s costs come from managing cash,” Heidloff told “As the cash cycle is optimized and better managed, the use of self-service increases. The more transactions that are moved to the self-service channel, the more efficient the cash cycle becomes.”
Channel integration is the key, he says.
“An increased use of self-service can improve cash management and customer satisfaction,” Heidloff said. “So, as more self-service is incorporated into a branch or a retail environment, with cash coming in (automated deposits), the more opportunities we will see for cash recycling within the self-service channel, within the branch or store, and the more integration we will see. This all improves efficiency.”
Wincor Nixdorf’s new cassette technology also is improving this cycle, as cash cassettes can be taken from teller or cashier lines and then used elsewhere in the branch or store.
“Cash-cycle management. This is a revolution for banking and retail,” Heidloff said. “The retail and banking industries work closely together, and once we implement the same solutions for cash-cycle management to both retail and banking, we can see a convergence, a stronger integration, of the two industries. This leads to savings for the retailer and improves efficiency for the bank.”
Bringing cash solutions to retail and banking, and then working to integrate the back-offices for a streamlined cash process — one in which the cash taken in by the retailer at the ATM or checkout, for instance, can immediately be credited to the back-office and housed in a cassette that calculates and credits the cash with the bank, ultimately empowering the bank to take over the retailer’s back-office responsibilities — is technology that to date only Wincor Nixdorf is offering, Heidloff says. He suggests that Wincor Nixdorf aims to be a trendsetter in this cash-integration space.
“We believe this will change the industry over the next five years,” Heidloff says. “We see long-term growth and change in the way banks manage cash. Bankers are interested in integration and so are retailers. We are creating standards that we expect our competitors to follow. They will have to. We were ahead of our competitors with deposit automation and they followed. In this area of cash-cycle management and integration between banks and retail, we expect the same trend. They will follow.”
Posted by: Tracy Kitten AT 10:13 am   |  Permalink   |  0 Comments  |  
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