Witnessing promising market potential in the fledgling automated teller machine (ATM) field in China, NCR Corporation (NCR) unveiled its flagship convenience store-based ATM product at the on-going China International Exhibition of Financial Banking Technology and Equipment show (CIEFBTE 2003).
The event, the nation's biggest banking technology show, showed off the new ATM EasyPoint 57, which could benefit from a surge in the use of such machines in the next few years, said C.K. Chan, NCR's general manager for China.
"We see huge market potential and robust demand to develop convenience store-oriented ATM business in China," Chan said on Tuesday at the CIEFBTE 2003. The event concludes tomorrow.
"It will not only make people's cashing activity convenient, but will increase revenues of banks and convenience stores," he said.
According to Chan, the decision to launch the product came out of NCR's intense market research, indicating that ATMs installed can benefit consumers, banks and merchants.
NCR's market research demonstrates that in mature markets, such as the United States and Europe, 40 percent of the money taken out of ATMS at convenience stores are spent in the stores.
Surveys show such banking machines can increase consumer spending by as much as 20 percent, according to NCR's studies.
"Across Asia, banks have quite literally taken their ATMs to consumers, deploying them in supermarkets, hotels, convenience stores and cinemas. As a result, their customers enjoy greater access to their money while banks themselves have seen increased revenues from a higher number of transactions and greater customer loyalty.
"Now, this compelling proposition for both financial institutions and retailers is available in China," said Chan. "With low-cost servicing and management, the EasyPoint 57 allows profitable deployment at sites that traditionally were not considered suitable for an ATM. With the EasyPoint 57, banks can now be wherever their customers want them to be."
When asked if e-banking will pose a threat to ATM business, Chan responded that ATMs are safer and cannot be replaced by e-banking systems in terms of some core functions.
The Hong Kong-based manager indicated the firm has started to contact local banks in Beijing to talk about the convenience store ATM business, but refused to release full details because of commercial concerns.
The ATM unveiled by NCR on Tuesday is the EasyPoint 57, which is the latest member of NCR's EasyPoint range of self-service products, designed to reduce ATM operating costs and extend the reach of banks beyond the branch.
Designed for convenience locations, the new ATM can run on the Microsoft Windows XP operating system, offering a consistent platform across a bank's entire self-service channel.
NCR is a global technology company based in Dayton, Ohio, helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata data warehouses and IT services provide Relationship Technology solutions that maximize the value of customer interactions.
(China Daily September 4, 2003)
