Montreal, Canada
February 28, 2007 Next-Generation ATM Software: From
Multivendor to Multichannel
Report Published by Celent
ATMs are increasingly
running on next-generation multivendor software that allows financial
institutions to deploy advanced functionality and improve the user
experience.
Today’s ATM market is shifting toward
more open architectures, as marked by the rapid adoption of a common
operating system (i.e., Windows), the emergence of multivendor software
supporting interoperability, and a move toward IP-based networks. This
shift is resulting in the increased commoditization of ATM hardware and is
enabling significant advancements on the software front—heralding a
period of innovation at the ATM which remains a critical but largely
underutilized delivery channel for banks. However, this change is also
requiring banks to implement new tools and tactics to manage a more open
and more complex technology environment.
In a new report, Next-Generation ATM
Software: From Multivendor to Multichannel, Celent estimates that 22%
of ATMs globally are currently running next-generation multivendor (i.e.,
XFS-based) software, a figure that is expected to rise to 37% by 2009. The
report provides an overview of multivendor software available on the
market and identifies banks’ key criteria in making the software buying
decision, particularly at how banks’ perception of the role of the ATM
impacts their approach to choosing software.
Celent also identifies
strategies being pursued by various financial institutions to modernize
their ATM architectures and highlights key benefits and challenges that
banks are experiencing as they migrate away from a non-proprietary ATM
technologies. Key benefits include an improved customer experience, ease
of innovation, and the decoupling of the hardware and software purchasing
decisions, while challenges include more complex change management,
security, support and testing requirements.
"Looking beyond the ATM
channel, the move to open architectures is also providing banks with
greater flexibility in integrating their self-service channels with other
banking applications. Best practice financial institutions that view the
ATM as a relationship device rather than merely a channel of convenience
are thinking beyond the concept of multivendor software and are tackling
the challenge of better integrating the ATM within the enterprise,
resulting in the emergence of a next-generation self-service architecture
based on the principles of service-oriented architecture,” says Madhavi
Mantha, author of the report and senior analyst.
The report includes an
in-depth case study of Landesbank Baden-Württemberg (LBBW), Germany’s
fifth largest bank, that has successfully tackled the challenge of
integrating its self-service channel within a broader cross-channel
platform built using the principles of SOA.
The report is 36 pages and
contains seven figures and five tables. A table of contents is available
online.
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