NCR Corp. (NCR) recently announced that it will provide 30 SelfServ Automated Teller Machines (ATM) to Redwood Credit Union. Financial details of the deal were not divulged.
Under the deal with Redwood, NCR will provide the credit union with SelfServ ATMs featuring the Scalable Deposit Module (SDM) technology, which allows customers to deposit both cash and checks simultaneously in any orientation through a single slot. This new technology will also double up the speed of ATM transactions.
NCR’s Self-Serve ATMs will replace Redwood’s existing fleet of machines. This will allow the credit union to provide best-in-class retail services.
We remain highly 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. We believe NCR Corp.’s commitment to protect the trust and integrity of the ATM channel has inspired Redwood to choose its services.
Apart from this, we remain encouraged by the company’s association with leading banks, such as Barclays Bank plc (BCS) and UniCredit Bank, which have upgraded their ATMs with advanced banking solutions.
NCR Corp. is keen to expand its share in the financial services market with advanced ATMs. To capitalize on the growing demand for off-premise ATMs, the company also introduced SelfServ 16 in February. SelfServ 16 is equipped with bank-grade ATM features that enable an ATM experience on premises other than banks.
Last week, NCR Corp. entered into a strategic alliance with Scopus Tecnologia for manufacturing and developing ATMs in Brazil. Moreover, Banco Bradesco (BBD) has signed an agreement with NCR to roll out 30,000 ATMs over the next five years.
This apart, we are encouraged by NCR’s decent second quarter results and its strength across geographies. We are also encouraged by the fiscal year guidance, and believe that the company is well positioned to deliver solid momentum across all its businesses.
Currently, NCR Corp. has a Zacks #2 Rank, which translates into a short-term Buy rating.
