Technology and solutions provider NCR Corp. (NCR) announced that it has offered its teller cash recycling technology to U.K.’s Metro Bank plc. Financial details of the deal were not disclosed. NCR Corp.’s cash recycling technology is expected to help the banking staff to focus on customer service by taking care of routine cash management chores.
More specifically, NCR Corp.’s Cash Recycler, running on APTRA Software, automates the acceptance, authentication and validation of bank notes while making them instantly available for dispensing to customers. The resultant speeding up of transactions would no doubt reduce waiting time and improve customer satisfaction and retention. Management estimates that the technology lowers transaction time by roughly 40%.
Currently, Metro Bank has deployed Cash Recycler at its Holborn, Earl’s Court and Fulham outlets and plans to deploy the same at its soon-to-open branch in Borehamwood. The bank plans to open 10 more branches in the next two years, and aims to have more than 200 in Greater London within a decade.
We believe this will be a great opportunity for NCR Corp. If the Cash Recycler is successful at the Metro Bank outlets — which does seem likely given the higher speed of transactions and relatively small space requirements — other similar deals could crop up.
Apart from this, we remain encouraged by NCR Corp.’s association with leading banks, such as Barclays Bank plc (BCS) and UniCredit Bank, which have upgraded their Automated Teller Machines. However, we believe that near-term visibility is limited, since it will be some time before the company’s robust business model and restructuring initiatives have a significant impact on results.
We currently have a short-term Sell recommendation on NCR Corp., as indicated by the Zacks #4 Rank.
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