NCR Corporation (NCR - Free Report) recently announced that it has unveiled a new and easy Managed Services for Community Financial Institutions (CFIs) in the U.S. NCR’s management and maintenance services will include monitoring of the ATM network, managing the availability of cash, maintenance of software and lowering costs for CFIs.
With mounting competition, leading financial institutions are continuously trying to increase customer interaction, cut costs, generate higher revenues and improve efficacy through their self-service channels. These goals can be realized by deploying NCR’s Managed Services solutions aimed at self-service kiosks.
NCR’s service suites ensure customer satisfaction. Moreover, they are expected to boost the customer retention rate for CFIs and generate steady revenue streams for NCR.
Chris King, VP of Financial Sales, North America, NCR, said, “The challenge that CFIs face is how to deliver world-class customer service at the lowest possible cost.” He added, “NCR’s new managed offers help CFIs stretch their available resources to provide the best possible experience with their ATM network.”
The company has been a global leader in self-service ATMs for several years in terms of market share. The company has more than 20,000 employees across 180 countries, delivering services worldwide to financial, retail and hospitality customers.
NCR’s Managed Services solutions will improve operational efficiency, curb expenses and expand their business. It will also ensure a superior self-service experience for the customers of CFIs.
The stock has outperformed the Zacks categorized Computer-Integrated Systems industry in the last one year. NCR’s shares have returned 34.69% compared with the industry’s decline of 3.96%.
The company remains the largest supplier of ATM machines in Asia-Pacific and North America, while maintaining its leadership in the Asian and European markets. Per the latest report by global research company RBR Research, the global ATM installed base is expected to reach 4 million units by 2020 from 3 million units in 2014. Currently, India is the world’s fourth-largest ATM market with China, the U.S. and Japan holding the first three spots, respectively. This creates huge opportunities for companies like NCR.
We believe that the company’s commitment to protect the trust and integrity of the ATM channel has been inspiring banks and a host of other financial institutions to opt for its services.
Continued product launches, growing popularity of its self-service offerings and synergies from acquisitions are other growth drivers.
Softness in the ATM business in mature markets, competition from Diebold Inc. (DBD - Free Report) and HP Inc. (HPQ - Free Report) and a high debt burden remain concerns.
Currently, NCR carries a Zacks Rank #4 (Sell).
A better-ranked stock in the technology sector is Applied Materials, Inc. (AMAT - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials has a long-term expected earnings growth rate of 16.6%.
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