NCR Corp. (NCR) another feather to its Automated Teller Machines (ATM) technology with the introduction of SelfServ 16, which is equipped with bank-grade ATM features. The new technology will be available for deployment in premises other than banks.
The compact NCR SelfServ 16 comes with a reasonable ownership cost, promises low to high transaction volumes, depending on customer requirement, and is ideal for financial institutions or banks eyeing off-premise ATM locations. It owns the features of SelfServ 22 and serves the purpose of large ATMs in off-premise locations.
SelfServ 16 is a joint effort by NCR Corp. and Cardtronics Inc. (CATM). Cardtronics owns and operates ATMs and other financial service kiosks in the United States, the United Kingdom, Mexico, and Puerto Rico. It played a major role in designing and framing the features of SelfServ 16.
Since the introduction of SelfServ ATMs in 2008, NCR Corp. has been associated with major financial institutions, facilitating revenue growth through easy and extensive installation of ATM services. It has also topped ATM availability levels and, in turn, enjoyed consumer satisfaction. The introduction of SelfServ 16 is expected to keep the trend rolling.
Over the years, the deployment of off-premise ATMs has increased steadily. Financial institutions are looking to extend their brands’ presence and serve customers when and where they want to transact. Approximately half of all global ATMs are away from a bank branch, with 69% of UK ATMs found off-premise.
We remain very positive on NCR Corp.’s ATM footprint. According to a study published by Retail Banking Research, NCR has been the world’s largest supplier of multi-vendor ATM middleware and applications for 23 consecutive years.
Last month, NCR Corp. clinched a deal with Chase, the U.S. consumer and commercial banking business of J.P. Morgan Chase & Co. (JPM), whereby the latter would deploy more ATMs incorporating NCR Corp.’s latest Scalable Deposit Module technology.
Despite the company’s market leadership, successful acquisitions, product introductions and continued customer wins, we prefer to take a cautious stance due to competitive pressure from Accenture Inc. (ACN) and uncertainty in its entertainment business.
Currently, NCR Corp. has a Zacks #3 Rank, which translates in to a short-term Hold recommendation.
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