European ATMs 2016

European ATMs 2016

Contactless Innovation at the ATM

Audrey Priami – KAL Head of Sales Europe

Slide 2

“Visa Europe records contactless growth across the continent”

European adoption of contactless is growing

• Some 3bn contactless transactions were made across Europe on Visa cards and payment-enabled devices in the year to 30 April 2016 - growing from 143m transactions a month in April 2015 to 360m in April 2016.

• Contactless transactions accounted for one in five of all Visa-processed, face-to-face payments.

• The average transaction value has also risen by 12% from €12.29 to €13.83.

http://www.nfcworld.com/2016/05/30/345124/visa-europe-records-contactless-growth-across-continent/

http://www.nfcworld.com/2016/05/30/345124/visa-europe-records-contactless-growth-across-continent/

Contactless

innovation

at the ATM

Maxim Dareshin

Head of self-service

development dpt.

London, 06/2016

ON

TARG

ET

Ab

ou

t A

lfa-B

an

kWho we are?

22%

# of retail customers 8,0 mln

market share 8,4%

# of ATMs 3500

- with cash-deposit 2200

- with cash recycler option 620

- contactless-enabled 160

withdraw61%

deposit39%

Transaction type’s shares

NCR78%

OKI19%

Wincor3%

Fleet by vendors

ON

TARG

ET

Co

nta

ctl

ess

Key reasons to do this!

33%

Safety (no skimming)

Speed of the transaction – 30seconds!

Allowing operations

using wearables and NFC-smartphones

ON

TARG

ET

Co

nta

ctl

ess

Requirements

44%

Tech

MasterCard© PayPass©

Single tap

PIN only

On-us, off-us

OKI RG7,

NCR SelfServ 32

Customers

Withdraw

Cash-in

Balance inquiry

P2P transfer

ON

TARG

ET

Co

nta

ctl

ess

Project

55%

Start – April 2015

Finish – November 2015

FB_IMG_1464625767652.jpg

First kick-off meeting

6 counterparties,

4 countries

ON

TARG

ET

Co

nta

ctl

ess

Results

67%

ON

TARG

ET

Co

nta

ctl

ess

ATM’s screen ad

78%

ON

TARG

ET

Co

nta

ctl

ess

89%

Next steps

+ 160 contactless-enabled ATM

Visa© PayWave© support

ApplePay©, SamsungPay©, … support

0

500

1000

1500

2000

2500

3000

- р.

100р.

200р.

300р.

400р.

500р.

600р.

700р.

800р.

900р.

1,000р.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

thousa

nds

Turnout, USD Quantity of transactions

Turn

out,

000 U

SD

Quanti

ty

Service usage statistics

Results

ON

TARG

ET

Fin

al

THANK YOU!

100%

Feel free to contact me!

Maxim Dareshin

[email protected]

Slide 12

The Alfa-Bank contactless project - Requirements

On-us and off-us (Mastercard interchange system can cope with contactless ATM data ok)

Single tap (vs double tap/present and hold)

No possibility of Follow-on transactions (not a limitation of contactless per-say)

)

Slide 13

The Alfa-Bank contactless project – KAL answers

KAL application on NDC

NDC screen changes (prompt to let customer know to tap card to start transaction)

NDC Idle state changes (activate and manage 2 card readers at the same time)

NDC state flow changes (limited set of transaction types for contactless cards : no PIN change)

NDC application logic changes (where to get card and chip data from, no chip validation of host reply)

Host messages in same format, but data content changes (host must be able to handle)

Slide 14

The Alfa-Bank contactless project – KAL answer

Cash out

Slide 15

The Alfa-Bank contactless project – KAL answer

Cash in

Questions?

Comments ?

[email protected]

+ 33 6 45 67 48 31

Slide 17

KAL sponsored “ATM Software Trends 2016” – Online Survey

Please identify your industry segment.

Answer Options Response Percent

Financial institution47.5%

Other52.5%

52%48%

Other

Financial Institution

Slide 18


In what global region are you based?Response

Percent

Africa 8.4%

Asia 13.7%

Australia 6.3%

EU and Europe 35.8%

USA, Canada, North America 29.5%

Central or South America 6.3%

EU and Europe

N. America

Asia

Africa

AustraliaLATAM

Slide 19


How many ATMs do you have?Response

Percent

1-100 18.4%

101-500 22.1%

501-2,000 20.0%

More than 2,000 39.5%

More than 2000

501 - 2000

101 - 500

1 - 100

NUMBER OF ATMS

Slide 20


Which of these features are supported today by some or all of your ATMs? [Select ALL that apply]Response

Percent

Bill payments 50.8%

Coin handling 26.9%

Cardless transactions (such as one-time use PIN for emergency cash, Tap and Go) 33.8%

Customize the user interface based on transaction history 16.2%

Dispensing multiple denominations ($1, $5, $10 etc) based on customer selection 38.5%

E-receipts 15.4%

General marketing campaigns 60.8%

Mobile phone integration, pre-stage transactions on mobile device 19.2%

Purchase items (e.g. prepaid cards, tickets, stamps) 16.2%

Remote teller assistance 8.5%

Targeted marketing, soliciting customer input (“Are you interested?” Yes / No) 22.3%

Video conferencing 4.6%

0

10

20

30

40

50

60

70

Slide 21


What are your biggest ATM ‘pain points’ today? [Choose up to THREE]Response

Percent

• ATM availability, reliability 38.5%

• Complexity of meeting regulatory compliance issues 20.0%

• Cost management 43.8%

• Need to improve the customer experience 33.8%

• Limited integration with other banking channels and internal systems (eg CRM) 29.2%

• Limited information about real-time operational status of ATM estate 6.2%

• Insufficient management information (reporting) 10.8%

• Lack of tools to remotely control and manage your ATMs 12.3%

• Limited functionality, lack of support for advanced features 17.7%

• Time to market to deploy new updates, new features 20.8%

• Speed of the ATM transactions (too slow) 4.6%

• Vendor / Supplier management 16.2%

• None of the above 3.1%

Slide 22


Regarding ATM usage, which of the following will be true for your

bank in 2020 compared to today?Response Percent

Our ATM transaction volumes will increase significantly 29.7%

Our ATM transaction volumes will increase somewhat 44.1%

Our ATM transaction volumes will remain about the same 9.0%

Our ATM transaction volumes will decrease somewhat 12.6%

Our ATM transaction volumes will decrease significantly 4.5%

ATMs in 2020

Slide 23


What do you think will be the biggest challenges in achieving your goals for

ATMs by 2020? [Choose up to TWO]Response Percent

Capital cost of new / upgraded machines to support latest technologies 42.3%

Operational costs to maintain new systems 30.6%

Complexity of implementing new technologies 36.0%

Customer acceptance of new / different technologies 22.5%

Maintaining security 29.7%

Meeting new government regulations 8.1%

Significant decrease in investment by bank in ATM and self-service

technologies16.2%

Other (please specify) 1.8%

ATMs in 2020

Documents

European ATMs 2016