‘06 ‘07 ‘08 ‘09 ‘10 ‘11 +3% +3% +3% +4% +6% U.S. CASH GROWTH THE CASH BARREL Screen-free User ID: by card-dip or thumbprint ATM functions: Withdrawal only with multiple fixed options Transaction time: seconds Design: Cylindrical for security, no corners to pry. Cheap to produce: no moving parts. FUTURE SOLUTIONS THE TOWER No interface ATM functions: Withdrawals only Design: small and slim tower NFC: Transactions are configured on cell phone. Tap cell phone and ATM automates. Transaction time: seconds. THE MOTION SENSOR Touchless interface: pointing and waving. ATM functions: Numerous in-depth options. Design: a woman sitting, evokes calm Transaction time: minutes THE IDEO Beta currently in Spain. Design: Single 19 inch touchscreen allows less confusion. 2 slots: card and deposit Turned 90º: waiting line is visible to user. ATM functions: Numerous and in-depth options with personalized settings per user. Transaction time: minutes Source: http://www.atmmarketplace.com/video/2904/BAI-2011-NFC-p-to-p-mobile-payments-with-new-Wincor-ATMs http://www.fastcompany.com/magazine/150/the-atms-of-the-future.html 4. 3. 2. 1. The Future of ATM s The Future of ATMs MOBILE TECHNOLOGY OPPORTUNITY OR THREAT? MOBILE TECHNOLOGY OPPORTUNITY OR THREAT? Our baseline projection is that over the next 10 years the value of the Fed’s shipments of cash to the banking system will grow 1.7% per year. http://www.frbsf.org/publications/economics/letter/2011/el2011-33.html U.S. BANK BRANCHES BRANCH TRANSACTIONS WILL DECLINE 2.5% FROM 2010 TO 2013 ONLINE AND MOBILE WILL SURGE 13.2% THE ATM HAS A STRONG FUTURE! More transactions per person + More cash in circulation + Fewer branches, More ATMs = More total ATM revenue and profit THE ATM IS HERE TO STAY! MOST POPULAR MARKETS FOR NEW AND REPLACEMENT ATM DEPLOYMENTS, 2012-2017 1. China 2. North America 3. India 4. Africa 5. Central & Eastern Europe 5. Central & Eastern Europe Top three threats facing the ATM industry? 1. SECURITY & FRAUD 2. MOBILE BANKING & PAYMENTS 3. REGULATIONS, LEGISLATION & COMPLIANCE Deploying solutions that integrate mobile banking and marketing with the self-service channel 45% Offering prepaid-card dispense at the ATM or other self-service channel 7% Reaching out to “digital natives”, those who grew up with digital and mobile technology 16% FIs, independent deployers and retailers partnering to reach unbanked and underbanked consumers 14% Advanced self-service solutions, such as bill payment and check cashing 19% ? CASH IS STILL KING... LONG LIVE THE KING! CASH Despite forecasts of a cashless society, the United States is nowhere near the realization of this vision,” says Ron Shevlin, senior analyst with Aite Group... “In fact, if the use of cash were to decline by 17% every five years—our forecast for 2015—the use of cash in the United States wouldn’t fall below US$1 billion before the year 2205, roughly 200 years from now. http://www.aitegroup.com/Reports/ReportDetail.aspx?recordItemID=745 ATM TRANSACTION GROWTH CASH WITHDRAWALS TO INCREASE 8% PER YEAR THROUGH 2016 ATM INSTALLATIONS TO GROW 6% Source: ATM Future Trends Report 2012, published by ATMmarketplace.com Cash recycling: 14% Technology/equipment to protect cardholder PINs: 8% MOBILE TECHNOLOGY: 42% Gov’t Regulations: 9% Other: 19% Interchange reduction: 9% ? Source: Federal Reserve Bank Source: Retail Banking Research (RBR) Source: ATM Future Trends Report 2012, published by ATMmarketplace.com blog.appboy.com Source: ATM Future Trends Report 2012, published by ATMmarketplace.com Source: ATM Future Trends Report 2012, published by ATMmarketplace.com Source: TowerGroup PRESENTED BY