Recently, NCR Corp. (NCR - Free Report) announced that the Bank of New Zealand (BNZ) is now using its Predictive Services solution. Financial details of the deal were not divulged.
NCR Corp.’s Predictive Services is expected to help the bank determine possible ATM (automated teller machines) disruptions at any location. Not only ATMs, but the bank’s retail self-checkout terminals also enjoy similar benefit from the Predictive Services.
Reportedly, BNZ has reduced its machine downtime significantly, and noticed a corresponding increase in accessibility to customers. An internal source mentioned that BNZ’s customers are now able to operate for an additional 20,000 hours annually, which would increase its brand value over the long term.
NCR Corp.’s Predictive Services, which is a managed service, accumulates operational data while executing transactions and sends error messages even during the operation. The error messages indicate potential problems that can disrupt the whole operation. This service is extremely beneficial for banks with multiple ATM sites, as they can detect and fix problems at any remote location before the problem disrupts the system.
In February, the U.K.-based supermarket chain Sainsbury deployed NCR Predictive Services on its point-of-sale and self-checkout lanes.
ATMs are no longer mere cash dispensers. Most of the ATMs today are multifunctional and have emerged as complete self-service terminals. Therefore, NCR’s Predictive Services solution is enabling faster and more accurate ATM transactions, which is desired by both banks and their customers. Given the benefits of the solution, it is expected that NCR Corp. could fetch similar deals in the near future.
We remain highly positive on NCR Corp.’s broad-based exposure in the ATM space. 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 25 consecutive years. We believe that NCR Corp.’s commitment to protect the trust and integrity of the ATM channel has been inspiring banks and a host of other financial institutions to choose its services.
But NCR Corp. will continue to face stiff competition from Diebold Inc. (DBD - Free Report) and Wincor Nixdorf in the ATM market.
Currently, NCR Corp. has a Zacks #3 Rank, which translates into a short-term Hold rating.