ATM Monitoring Technology for Omnichannel Banking...

ATM Monitoring Technology for Omnichannel Banking Systems

DEVELOPED AND PUBLISHED BY:

SPONSORED BY:

GUIDE

By Robin Arnfield, contributing writer, ATMmarketplace.com

www.atmmarketplace.com

http://www.aurigaspa.com/eng/

2© 2015 Networld Media Group | Sponsored by Auriga

Page 4 Introduction

Page 10 Chapter 1 | ATM monitoring and management survey results 4 Chapter 2 | Interviews with financial institutions

Page 35 Chapter 3 | Recommendations from consultants and vendors Page 45 References

CONTENTS

Published by Networld Media Group © 2015 Networld Media GroupWritten by Robin Arnfield, contributing writer, ATMMarketplace.comTom Harper, president and CEOKathy Doyle, executive vice president and publisherSuzanne Cluckey, editorBrittany Warren, custom content editor



CONTRIBUTING ORGANIZATIONS

Auriga (Italy)

Alfa-Bank (Russia)

Andrew Martin, Retail Bank Consulting Group (U.K.)

ATMIA

Banca Marche (Italy)

Banco Sabadell (Spain)

BBVA Compass (U.S.)

BECU (U.S.)

BNL Gruppo BNP Paribas (Italy)

Francesco Burelli, partner, Innovalue Management Advisors (U.K.)

CaixaBank (Spain)

CartaSi (Italy)

Co-op Financial Services (U.S.)

First Data (U.S.)

First National Bank (South Africa)

Inetco Systems (Canada)

Kiwibank (New Zealand)

Mercator Advisory Group (U.S.)

National Bank of Canada

PNC Bank (U.S.)

Raiffeisen Bank International (Austria)

Danny Rogge, Rogge Consult (Belgium)

Servizi Bancari Associati (Italy)

Jim Tomaney, managing director, Q-ATM (U.K.)

UBS (Switzerland)



ATM Marketplace surveyed more than 100 FIs worldwide and conducted detailed interviews with leading European and North American banks and consultants to compile ATM Monitoring Technology for Omnichannel Banking Systems.

This report examines how FIs use their existing ATM monitoring and management platform, as well as how they might integrate ATM monitoring technology into an om-nichannel environment.

ATM Marketplace thanks Auriga for allowing us to bring this publication to you at no cost. We also thank all the participants in our survey.

ATM monitoring and management surveyFrom June to July 2015, ATM Marketplace conducted an international survey of FIs on the topic of ATM monitor-ing technologies for use in conjunction with omnichannel banking services platforms.

The survey received responses from 106 ATM-operating FIs from around the world.

Respondents were asked, “How many ATMs do you have in your fleet?”

A quarter (26 percent) of respondents have more than 2,000 ATMs, while 25 percent have fewer than 100 ATMs.

Just over one-fifth (21 percent) have 501-2,000 ATMs, while 29 percent have 101-500 ATMs.

Siloed approach The survey found that most respondents have a siloed ap-proach to channel management and monitoring.

Nearly one-quarter of respondents (24 percent) have a single omnichannel management system that manages all their distribution channels (ATMs/kiosks, branches, mobile,

online, digital signage, etc.). The remaining respondents (76 percent) manage their channels as siloes.

While one-third (34 percent) of respondents plan to mi-grate to a single omnichannel management system, 44 percent are unsure about their plans. The remainder (23 percent) don’t plan to migrate to a single omnichannel management system.

More than one-quarter (27 percent) of respondents have a single omnichannel monitoring system that enables them to control all their existing channels.

More than one-quarter (28 percent) of respondents plan to migrate to a single omnichannel monitoring system. How-ever, more than one-half (53 percent) are unsure about their plans, and the remainder (20 percent) don’t plan to migrate to a single omnichannel monitoring system.

SuppliersThe survey found that three-quarters (74 percent) of respondents use an external ATM monitoring system sup-plier, as opposed to in-house developed solutions.

Robin ArnfieldMobilePaymentsToday.com

Robin Arnfield has been a technology journalist since 1983. His work has been published in ATM Marketplace, Mobile Payments Today, ATM & Debit News, ISO & Agent, CardLine, Bank Technology News, Cards International and Electronic Payments International. He has covered the United Kingdom, European, North American and Latin American payments markets.

INTRODUCTION




Nearly half (44 percent) of respondents answered yes when asked whether they would use an external ATM monitoring solution supplier.

Two-thirds (64 percent) of respondents said they wouldn’t be willing to develop their own ATM monitoring solution.

Nearly two-thirds (60 percent) of respondents use an ATM monitoring solution supplied by their ATM software vendor, while nearly half (42 percent) use an ATM monitoring solution from a third-party supplier that is also a hardware provider.

Just over one-third (36 percent) of respondents use a monitoring solution from a vendor-independent ATM soft-ware supplier such as Auriga that provides ATM transac-tional software but not ATM hardware.

One-quarter (25 percent) of respondents answered yes when asked whether they would be willing to use a moni-toring tool from a vendor-independent ATM software sup-plier that provides ATM transactional software but doesn’t provide ATM hardware. However, 69 percent said they were neutral, and 6 percent said no.

Just over half (51 percent) of respondents use the same company to provide their monitoring software and to oper-ate and manage their ATM monitoring services.

Monitoring featuresMore than three-quarters (76 percent) of respondents said their monitoring solution includes terminal monitoring features that collect information about the terminal’s status changes and indicate any potential or real problems.

In addition, 71 percent said their monitoring solution offers monitoring of technical problems connected with ATM hardware components as well as transactional monitoring.

Only 31 percent of respondents said their monitoring solution includes proactive monitoring with automatic self-healing capabilities, automated incident processing and resolution flow. More than half (51 percent) answered no to this question, and the remainder (18 percent) said they didn’t know.

Just over one-quarter (27 percent) said their monitoring solution includes predictive maintenance features, while 51 percent answered no, and the remainder (22 percent) said they didn’t know.

Nearly half (48 percent) said their monitoring solution includes dashboards with a “bird’s eye” view ATM map showing availability across their fleet, while 37 percent answered no, and the remainder (15 percent) said they didn’t know.

Only 11 percent of respondents said their monitoring solution offers autonomous configuration of new key performance indicators (KPIs) without input from the supplier, while 57 percent said no, and 33 percent said they didn’t know.

ImprovementsHalf (50 percent) of respondents said their monitoring solution had made noticeable improvements to their ATM availability levels compared to before they deployed the solution. The remainder said they didn’t know what their improved ATM service availability was.

Nearly one-quarter (24 percent) of respondents said their improved ATM service availability had reduced their opera-tional costs by up to 25 percent, while 14 percent said their operational costs had been reduced by 26-50 percent.

No respondents had seen a reduction of more than 50 percent, and 62 percent said they didn’t know what the reduction was.

Just over one-third (21 percent) of respondents said they have been able to reduce field engineers’ on-site activi-ties by up to 25 percent due to their improved ATM service availability, while 17 percent said they had been able to reduce field engineers’ visits by 26-50 percent. No respon-dents had seen a reduction of more than 50 percent, while 62 percent said they didn’t know what the reduction was.

More than half (57 percent) of respondents said they are satisfied with their current monitoring solution. Asked whether they plan to change their monitoring solution, 61 percent said yes.



KPIsAsked to identify the essential KPIs that need to be pro-vided by a monitoring solution, respondents gave answers such as:

• ATM down;• Length of time ATM is down;• Failed transaction;• ATM uptime; • Service level agreements (SLAs) monitoring;• Customer availability of ATM by function or critical com-

ponent, communications failure, out of cash, part failure, mean time to repair, reports by region, district, city, etc.;

• Ability to view entire fleet at once, automated ticket opening and predictive maintenance would be nice.

In-depth interviewsFor this report, ATM Marketplace conducted in-depth in-terviews with innovative FIs in Europe and North America, including U.S.-based BECU and BBVA Compass, Spain’s Banco Sabadell and CaixaBank, Italy’s BNL Gruppo BNP Paribas, Austria’s Raiffeisen Bank International and Swit-zerland’s UBS.

Interviews also were conducted with leading ATM man-agement and monitoring consultants including Francesco Burelli, a partner at Innovalue Management Advisors; Ed O’Brien, director of Mercator Advisory Group’s Banking Channels Advisory Service; Danny Rogge, owner of Rogge Consult; and Jim Tomaney, managing director of Q-ATM.

None of the FIs interviewed in person by ATM Marketplace said they had integrated omnichannel management and monitoring systems, and many identified necessary orga-nizational changes as a key barrier to moving from siloed monitoring and management.

Best practice“It’s almost foolhardy not to have ATM systems monitor-ing,” Mercator’s O’Brien said. “It’s like preventive mainte-nance for your home or car. Using ATM monitoring tech-

nology that gives you advance warning of problems means you can take care of issues ahead of peak time. For example, if you detect the receipt printer is about to fail, and you know most people get paid on Friday and then withdraw their pay packet at an ATM, you can do the repair by Wednesday. This will ensure an optimum service level for your customers.”

Running ATM monitoring means that ATM deployers can save on field engineer costs, as they don’t need to send field engineers out on routine maintenance inspections to check every ATM, O’Brien says.

“A best practice in ATM monitoring is to use software that puts a virtual agent on the ATM at the XFS (extensions for financial services) level to monitor the machine,” Q-ATM’s Tomaney said. “The virtual agent can take care of prob-lems locally and send reports to the help desk.”

In a Payments Journal blog post, O’Brien wrote: “Recent Mercator Advisory Group research on various banking channels systems, including ATMs, branch, and mobile banking systems, shows an increased interest — and need — for systems monitoring and management sys-tems. These capabilities go beyond traditional condition monitoring systems, which often focus on system health and potential downtime, and increasingly include applica-tion performance monitoring and threat monitoring and management solutions. And while fraudsters will continue to find ways to compromise banking systems, having such pro-active, defensive solutions can help to reduce the number and severity of attacks.”

With FIs increasingly deploying advanced, multifunction ATMs as part of their branch transformation initiatives, real-time and highly precise monitoring and management of these sophisticated machines is important if FIs are to avoid customer dissatisfaction due to downtime or malfunctions.

“When moving teller operations to self-service and assisted-service devices, complexity and cost are added to the self-service channel,” said Carmine Evangelista, chief technology officer at Auriga. “The more complex the channel becomes and the greater the variety of transac-tions performed, the bigger the challenge is for the moni-toring solution.”

http://www.paymentsjournal.com/Content/Featured_Stories/26793/



“In the complex environment (of multifunction ATMs), where ATMs are more than cash dispensers, it’s essential to ensure not just cash and machine availability but the availability of a complete range of services that custom-ers require at all times in strict security conditions,” a spokesperson for CaixaBank said. “To achieve this goal, operations management isn’t enough. You need to study at all times the behavior of each ATM and its users in order to predict and detect any changes needing to be made in order to continue offering the best service. Informa-tion received from other channels is essential in order to maintain online contact with the ATM network in order to exceed client expectations.

OmnichannelIn an omnichannel banking environment, customers inter-act with FIs via the channel of their choice — at branches and call centers or via self-service channels such as ATMs, the Web and mobile devices.

“True omnichannel includes not just integration but also collaboration between the different channels, so banks can have a 360-degree real-time view of customers’ needs and behaviors,

and customers can start a transaction on one channel and complete it on another and obtain real-time information,” Mercator’s O’Brien said.

A key driver for investing in omnichannel integration is to improve the customer experience. “C-level bank execu-tives realize the importance of offering good customer experience if their bank is to remain a primary FI for their customers,” O’Brien said. “Banks are moving to omnichan-nel so they can compete more effectively against the direct banks and the new innovative payment companies as well as against other incumbent banks.”

“A key barrier to omnichannel integration is legacy sys-tems,” said Lamberto Spadari, systems manager at Italy’s Banca Marche.

Management constraints caused by organizational siloes also represent a key barrier to omnichannel integration, according to the ATM Industry Association (ATMIA) report

“It’s almost foolhardy not to have ATM systems monitoring. It’s like preventive maintenance for your home or car. … [ATM monitoring] will ensure an optimum service level for your customers.”— Ed O’Brien, director of Mercator Advisory Group’s Banking Channels Advisory Service

“Best Practice for Developing and Deploying the ATM in a Multi-Channel Retail Banking Delivery System.”

O’Brien says it’s especially the case with smaller FIs that their various channels may be siloed.

“Consumers expect banks to provide a consistently great experience,” said Ron Hemming, senior vice president, IT director of ATM operations/network/enterprise monitoring, at U.S.-based BBVA Compass. “Consumers will want their bank to allow them to complete transactions where and when they want, which means providing a strong brand across all technologies. The barriers to an omnichannel experience are more likely to appear within the bank itself than with consumers. Getting the bank to focus on a holis-tic view of the customer experience can be difficult.”

“Having team members change their view of building their widget and instead look at the entire experience from branch, ATM, online banking to mobile apps is the key to being successful,” Hemming said. “Consumers change the way they bank perhaps several times a day using smart-phones, tablets, online banking websites and ATMs, so these all need to be consistent.”

ATM growth forecastU.K.-based consultancy RBR predicts the global ATM installed base will increase to almost four million ATMs by 2019.

http://www.atmmarketplace.com/news/rbr-study-newer-atm-markets-the-most-dynamic-becoming-the-largest/



Growth patterns will vary widely over the forecast period, RBR’s “Global ATM Market and Forecasts to 2019” report says. Several Asia-Pacific and Middle East and Africa (MEA) countries will see double-digit annual growth rates, while a small number of markets — primarily in Western Europe — will contract.

The Nigerian market will almost triple in size between 2013 and 2019, as banks ramp up levels of off-site deploy-ment to compete for a share of the increasing transaction volumes. Other major MEA markets will experience strong growth as well, driven by both customer demand and gov-ernment requirements.

RBR forecasts growth of installed bases in almost all Central and Eastern Europe (CEE) and Latin American countries, though at a fairly slow rate. The availability of low-cost ATMs will help boost CEE installations, while Latin American deployers will expand their fleets to meet demand from newly banked customers.

RBR says deployers in the majority of markets remain cautiously optimistic about the potential for further growth, with possible inhibitors — particularly cost-related factors — continuing to weigh on ATM strategies. Even in the few countries where a decline in numbers is expected, this is likely to occur slowly and possibly even reverse in the lat-ter years of the forecast period, RBR says.

Regional breakdownThe Asia-Pacific region accounted for more than 40 percent of the 2.8 million ATMs installed worldwide at the end of 2013, RBR says. China now has the largest ATM installed base, having surpassed the U.S. in 2013.

MEA is the second-fastest growing region, and is the only region in which all of the countries surveyed by RBR saw an increase in ATM numbers in 2013. In Russia — where the first ATMs were installed in the early 1990s — the installed base continues to grow strongly and far outstrip other countries in CEE, as Russian banks bring ATMs to underserved rural areas.

An important emerging market whose growth has slowed in the last few years is Brazil, where banks now are turning

to the shared Banco24Horas network as an alternative to increased off-site deployment. Elsewhere in Latin America, four of the region’s seven major markets grew by 5 percent or more in 2013, with cost-cutting and strong demand from new customers among the principal drivers of new installations.

It’s a different story in more established markets, with more than half of the 20 major markets in North America and Western Europe contracting in 2013. The only no-table exception to sluggish growth in these two regions is Turkey, the youngest of Western Europe’s major ATM markets; much of Turkey’s growth came from state-owned banks, as these began to replicate the private banks’ recent expansion.

Off-site ATMsOff-site ATMs make up almost half of the global installed base, although their share declined slightly in 2013, RBR says. In some countries, high off-site shares can be at-tributed to the presence of independent ATM deployers (IADs); this is the case in the U.S. and the U.K., which have well-developed IAD sectors. Overall, IAD ATMs make up 16 percent of the global installed base, RBR says.

Globally, the lobby was the only location type to see its share rise in 2013, RBR says. One reason for this is the increasing implementation of automated deposit technol-ogy, as lobby ATMs offer the convenience of extended-hours availability, with transactions in a secure branch- like environment.

ATM share by location, end of 2013

http://www.rbrlondon.com/about/G19_Press_Release_050315.pdf



Improving existing operationsAccording to RBR’s “ATMs in Europe 2014: Hardware, Soft-ware and Services report,” European banks increasingly are focusing on improving their existing ATM operations rather than on deploying more terminals.

The report says that, with the exception of the Russian and Turkish markets, which saw significant growth, the Eu-ropean installed base shrank by more than 15,000 ATMs in 2013. Despite this, the market saw a significant increase in the number of automated deposit ATMs featuring cash-recycling technology.

In Europe as a whole, the number of ATMs featuring cash-recycling technology increased by 18 percent in 2013 to 28,000, of which nearly half were installed in Germany.

http://www.atmmarketplace.com/news/for-europes-atm-deployers-innovation-trumps-expansion/

http://www.atmmarketplace.com/news/for-europes-atm-deployers-innovation-trumps-expansion/


CHAPTER 1ATM monitoring and management survey results

1. In which region is your headquarters located? 2. How many ATMs do you have in your fleet?

The U.S., with 28 percent, accounted for the largest share of respondents answering this question.

One-fifth (20 percent) of respondents have their head-quarters in Asia, followed by the Middle East and Africa with 16 percent, Eastern Europe with 11 percent and Latin America/South America with 9 percent. Western Europe accounted for 7 percent, Canada for 7 percent and Austra-lia for 3 percent.

While 29 percent of respondents have 101-500 ATMs, 25 percent have 1-100 ATMs, 21 percent have 501-2,000 ATMs and 26 percent have more than 2,000 ATMs.

In July 2014, ATM Marketplace surveyed FIs worldwide about their deployment of ATM-mobile integration technology and their multichannel banking strategies.

The survey received responses from 106 banks and other types of FIs from around the world. Non-FI ATM operators, ATM vendors and other non-FI respondents were not included in the survey results.

Latin America/South America

Australia 3%

Canada

7% Western Europe

7%

9%

Eastern Europe

11% Middle East/Africa

16%

Asia

20%

United States

28%

1-100

25%

101-500

29%

501-2,000

21%

More than 2,000

26%




3. Do you have a single omnichannel management system to manage all your distribution channels (ATMs/kiosks, branches, mobile, PC Internet, digital signage, etc.), or do you manage your channels as silos?

5. Do you have a single omnichannel monitoring system so you can control all your existing channels and ensure high service availability for all your customers’ contact points?

6. Do you plan to migrate to a single omnichannel monitoring system?

4. Do you plan to migrate to a single omnichannel management system?

Nearly one-quarter (24 percent) said they have a single omnichannel management system, while 76 percent have siloed channel management systems.

Just over one-quarter (28 percent) of respondents said they plan to migrate to a single omnichannel monitoring system. However, 20 percent said they don’t plan to do so, and 53 percent said they don’t know.

Only 27 percent of respondents have a single omnichannel monitoring system, while the remainder (73 percent) have siloed monitoring systems.

Only 34 percent of respondents plan to migrate to a single omnichannel management system, while 23 per-cent have no plans to do so. Nearly half (44 percent) said they aren’t sure.

Silo management

76%

Omnichannel management system

24%

Yes

34%

No

23%

Not sure

44%

28% 20%

53%

Yes

27%

No

73%



7. From which of the following platforms do you access your monitoring system?

8. From which of the following platforms would you like to be able to access your monitoring system: desktop operational management console; Web-based operational management console accessible from any device used to connect to the Internet; a specific native application for smartphones; a specific native application for tablets?

Just over half (56 percent) of respondents use a desktop operational management console to access their monitor-ing system, while 44 percent use a Web-based operation-al management console accessible from any device used to connect to the Internet. None of the respondents use a native application for smartphones and/or tablets enabling staff to access their monitoring system.

56%

44%

Desktop operational management console

Web-based operational management console accessible from any device used to connect to the internet

Yes 80%

No 20%

No

94%

6%

Yes 73%

27% Yes

No

70%

30% Yes

No

Of those who answered this question:• 64 respondents said they would like to access their monitoring system via a Web-based operational

management console and four said they would not; • 47 said they would like to use a desktop operational management console and 12 said they would not; • 41 said they would like to use a specific native application for smartphones and 15 said they would not; • and 40 said they would like to use a specific native application for tablets and 17 said they would not.

57%

13%

30%

Yes

No

I don't know

9. Do you think deploying meeters and greeters within your branches who have a monitoring app on their smartphones/tablets could help reduce out-of-service time and costs?

More than half (57 percent) of respondents to this ques-tion said deploying meters and greeters in branches with a monitoring app on their smartphones/tablets could help reduce out-of-service time and costs. Nearly one-third (30 percent) said they didn’t know, and 13 percent said they would not help reduce out-of-service time and costs.



10. How much integration did you require for your ATM monitoring solution with your existing architecture?

11. How important a criterion for you is the cost of integrating your ATM monitoring solution into your existing architecture?

54%

46%

Light integration with your existing central system and ATM software

Strong integration with your existing central system and ATM software

More than half (54 percent) said they required light integration with their existing central system and ATM software, while 46 percent required strong integration.

Of the respondents to this question, 44 percent said they would use an ATM monitoring system from an external supplier, and 56 percent said they would not.

Just under two-thirds (60 percent) of respondents use an ATM monitoring solution supplied by their ATM software vendor, while 40 percent said they do not.

Low

9%

Medium

46%

High

46%

Nearly half (46 percent) of respondents said the cost of integrating their ATM monitoring system into their existing ATM architecture is highly important, while 46 percent said it is of medium importance. Nine percent said the cost is of low importance.

12. Do you use an ATM monitoring solution from an external supplier, or do you use your own monitoring solution that was developed and managed in-house?

13. Would you use an ATM monitoring solution from an external supplier?

14. Do you use an ATM monitoring solution supplied by your ATM software vendor, e.g., NCR ATM monitoring software and NCR ATM software?

Nearly three-quarters (74 percent) of respondents said they use an external ATM monitoring solution supplier, and the remainder (26 percent) use an in-house monitoring solution.

External supplier

74%

In-house monitoring

solution

26%

Yes No

44% 56%

Yes No

60% 40%



15. Do you use an ATM monitoring solution from a third-party supplier that is also a hardware provider, e.g., NCR ATM monitoring software with Wincor Nixdorf ATM software?

17. Do you use a monitoring solution from a vendor-independent ATM software supplier such as Auriga that provides ATM transactional software but doesn’t provide ATM hardware?

42% 58%

Yes No

While 42 percent of respondents to this question said they use an ATM monitoring solution from a third-party supplier that is also a hardware provider, 58 percent said they do not.

16. Would you be willing to use a third-party ATM monitoring solution supplier that is also a hardware provider?

Yes

31%

No

17%

Neutral

52%

Just under one-third (31 percent) of respondents said they would be willing to use a third-party ATM monitoring solution supplier that is also a hardware provider, but 17 percent said they do not, and 52 percent said they were neutral.

One-quarter (25 percent) of respondents said they would be willing to use a monitoring tool from a vendor-independent ATM software supplier that provides ATM transactional software but doesn’t provide ATM hardware. However, 69 percent said they were neutral, and 6 percent said no.

36%

64%

Yes No

Just over one-third (36 percent) of respondents said they use a monitoring solution from a vendor-independent ATM software supplier that provides ATM transactional software but doesn’t provide ATM hardware. However, 64 percent answered no to this question.

18. Would you be willing to benefit from hardware agnosticity and use a monitoring tool from a vendor-independent ATM software supplier such as Auriga that provides ATM transactional software but doesn’t provide ATM hardware?

Yes

25%

No 6% Neutral

69%



19. Do you use a monitoring solution from a software supplier that just provides monitoring software and doesn’t provide ATM transactional software?

20. Would you be willing to use a monitoring tool from a software supplier that doesn’t provide any ATM transactional software?

More than three-quarters (78 percent) of respondents said they don’t use a monitoring solution from a soft-ware supplier that just provides monitoring software and doesn’t provide ATM transactional software. The remainder (22 percent) answered yes to the question.

Two-thirds (64 percent) of respondents said they were neutral on this issue, while 15 percent said yes, and 21 percent said no.

22. Do you use the same company to provide your monitoring software and to operate and manage your ATM monitoring services?

Just over half (52 percent) of respondents said they use the same company to provide their monitoring software and to operate and man-age their ATM monitoring services. However, 49 percent answered no to this question.

Yes No

22%

78%

15%

21%

Neutral NoYes

64%

21. Would you be willing to develop your own monitoring solution?

Two-thirds (64 percent) of respondents said they wouldn’t be willing to develop their own monitoring solution, while the remainder (36 percent) said they would.

NoYes

36% 64%

52%

49%

Yes

No



23. Would you be willing to use the same company to provide your monitoring software and to operate and manage your ATM monitoring services?

25. Is your monitoring solution management service multi-time-zone?

More than half (56 percent) of respondents said they would be willing to use the same company to provide their monitoring software and to operate and manage their ATM monitoring services. However, 44 percent answered no to this question.

24. Is your monitoring solution multibank, i.e., able to monitor different ATM networks owned by different bank subsidiaries within the same group?

While 44 percent of respondents said their monitoring solution is multibank, 40 percent answered no, and 16 percent said they didn’t know.

Three-quarters (76 percent) of respondents said their monitoring solution includes terminal monitoring fea-tures that collect information about the terminal’s status changes and indicate any potential or real problems. Only 18 percent answered no to the question, and six percent said they don’t know.

Less than half (42 percent) of respondents said their monitoring solution is multi-time-zone, while 36 percent said no, and 22 percent said they didn’t know.

26. Does your monitoring solution include terminal monitoring features that collect information about the terminal’s status changes and indicate any potential or real problems?

Yes No

56%

44%

Yes

44%

No 40%

I don't know

16%

27. Does your monitoring solution offer monitoring of technical problems connected with ATM hardware components as well as transactional monitoring?

76%

18% 6%

Yes No I don't know

Nearly three-quarters (71 percent) of respondents said their monitoring solution offers monitoring of technical prob-lems connected with ATM hardware components as well as transactional monitoring. While 18 percent answered no to this question, 11 percent said they didn’t know.

Yes No I don’t know

71% 18%

36%

22%

42% Yes

No

I don't know



28. Does your solution include proactive monitoring with automatic self-healing capabilities, automated incident processing and resolution flow?

30. Does your solution include remote management operations capabilities enabling a remote operator to send commands from the central system to the terminal in order to avoid engineers’ field visits?

Half (51 percent) of respondents to this question said their solution doesn’t include proactive monitoring with automat-ic self-healing capabilities, automated incident process-ing and resolution flow. Just under one-third (31 percent) answered yes, and 18 percent said they didn’t know.

29. Does your solution include predictive maintenance capabilities?

More than half (51 percent) of respondents said their solu-tion doesn’t include predictive maintenance capabilities, while 27 percent answered yes to the question, and 22 percent said they didn’t know.

Two-thirds (66 percent) of respondents said their solu-tion includes remote management operations capabili-ties that allow a remote operator to send commands from the central system to the ATM. One-quarter (24 percent) answered no to the question, and 11 percent said they didn’t know.

31. Does your solution include an incident management ticketing system using all the messages and data from the terminals to automatically trigger a process in compliance with a predefined tracking and alerting workflow?

Two-thirds (67 percent) of respondents said their solution includes an incident management ticketing system, while 24 percent said it does not, and 9 percent said they didn’t know.

Yes

31%

No 51%

I don't know

18%

Yes

27%

No

51%

I don't know

22%

66%

24% 11%

Yes No I don't know


67% 24%

9%



32. Do you have to integrate your monitoring solution with an external ticketing system?

33. Is your monitoring solution able to connect to external hardware vendors’ ticketing systems?

Less than one-third (31 percent) of re-spondents said they have to integrate their monitoring solution with an external ticketing system, while 54 percent said they did not know, and 15 percent said they didn’t know.

Nearly half (46 percent) of respondents said their monitoring solution is able to connect to external hardware vendors’ ticketing sys-tems, while 24 percent said it was not able to do so, and 30 percent said they didn’t know.

35. Does your monitoring solution provide statistics in tables and graphical formats?

More than half (59 percent) of respondents said their monitoring solution provides statis-tics in tables and graphical formats, while 26 percent said it does not, and 15 percent said they didn’t know.

34. Does your monitoring solution offer real-time engineer tracking and supervision?

More than one-third (37 percent) of respon-dents said their monitoring solution offers real-time engineer tracking and supervision, while 33 percent said it does not, and 30 percent said they didn’t know.

31%

54%

15%

Yes

No

I don't know


46% 24%

30%

Yes 37%

No 33%

I don't know 30%

59%

26% 15%

Yes No I don't know



36. Does your solution include dashboards and a “bird’s eye view” ATM map giving a clear view of service availability in your fleet according to different regions, bank IDs, etc.?

Nearly half (48 percent) of respondents said their solution includes dashboards and a “bird’s eye view” ATM map, while 37 percent said no, and 15 percent said they didn’t know.

48%

37%

15%

Yes

No

I don't know

37. What are the essential KPIs (key performance indicators) that need to be provided by a monitoring solution?

• ATM down;

• Downtime, return to service rates;

• Availability, time to arrive, time to fix;

• Length of time ATM is down;

• Failed transaction;

• ATM uptime;

• Real-time cash, communications and fault monitoring;

• Service level agreements (SLAs) monitoring;

• Customer availability of ATM by function or critical component, communications failure, out of cash, part failure, mean time to repair, reports by region, district, city, etc.;

• Transaction per day; average transaction time;

• Reliable error messaging, 24x7 availability of monitoring, link into accurate reporting;

• Ability to view entire fleet at once, automated ticket opening and predictive maintenance would be nice.

Respondents gave answers such as:

38. Does your monitoring solution offer autonomous configuration of new KPIs without input from the supplier?

Only 11 percent of respondents said their monitoring solution offers autonomous configuration of new KPIs without sup-plier input. More than half (57 percent) said it does not, and 33 percent said they didn’t know.


11%

57%

33%



39. Does your solution include autonomous and on-demand electronic journal collection, storage and consulting?

41. Does your solution offer complete hardware and software terminal inventory capabilities that collect and report on any configured management information available locally on the ATM?

Nearly half (48 percent) of respondents said their solution includes autonomous and on-demand electronic journal collection, storage and consulting. One-third (35 percent) said it does not, and 17 percent said they didn’t know.

40. Would you be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consulting?

One-quarter (25 percent) of respondents said they would be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consult-ing. Two-thirds (63 percent) were neutral, and 12 percent said they would not be willing to use a single provider.

Just over one-third (35 percent) of respondents said their solution offers complete hardware and software terminal inventory capabilities, while 37 percent said it does not, and 28 percent said they didn’t know.

42. Would you be willing to have a single provider for monitoring and for terminal inventory capabilities?

More than half (59 percent) of respondents said they would be willing to have a single provider for monitoring and for terminal inventory capabilities, while 12 percent said they would not, and 29 percent said they were neutral.

Yes

48%

No

35%

I don't know

17% 35%

37%

28%

Yes

No

I don't know

Yes

59% No

12%

Neutral

29%

Yes

25% No

12% Neutral

63%



43. Does your monitoring solution offer software distribution and release management technology that links your central system and terminals in order to deploy files on the terminals, retrieve files from the terminals and distribute packages to the terminals?

45. Would you be willing to have a single provider for monitoring, software distribution and release management?

More than half (52 percent) of respondents said their monitoring solution offers software distribution and release management technology that links their cen-tral system and terminals. One-third (20 percent) said they didn’t know, and 28 percent said it does not offer such technology.

44. Is your software distribution and release management technology a separate product from your monitoring solution?

The majority (85 percent) of respondents said their soft-ware distribution and release management technology are a separate product from their monitoring solution, while 8 percent said it was not separate, and 8 percent said they didn’t know.

Nearly half (46 percent) of respondents said they would be willing to have a single provider for monitoring, software distribution and release management, while 23 percent said they would not be willing, and 31 percent said they were neutral.

46. Do you use a terminal handling solution and monitoring solution that are both provided by the same supplier?

Just over half (52 percent) of respondents use a terminal handling solution and monitoring solution that are both provided by the same supplier, while 31 percent said they do not, and 17 percent said they didn’t know.


52% 28%

20%

Yes 85%

No

I don't know

8% 8%

46%

23% 31%

Yes

52% No

31%

I don't know

17%



47. Do you use a monitoring solution and a fraud management solution that are both provided by the same supplier?

49. Are you satisfied with your current monitoring solution?

Two-thirds (62 percent) of respondents don’t use a moni-toring solution and a fraud management solution that are both provided by the same supplier, while 26 percent said they do, and 12 percent said they didn’t know.

48. Would you say your monitoring solution has noticeably improved your ATM service availability levels compared with before you deployed the solution?

Half (50 percent) of respondents said that their monitor-ing solution had improved their ATM service availability levels noticeably compared with before they deployed the solution. The remainder said they didn’t know what their improved ATM service availability was.

More than half (57 percent) of respondents said they were satisfied with their current monitoring solution, while 43 percent answered no.

50. Are you planning to change it?

Nearly two-thirds (61 percent) of respondents are planning to change their ATM monitoring solution, while 39 percent don’t plan to do so.

Yes 26%

No 62%

12% I don't know

Yes No

57% 43%

Yes

61%

No

39%

I don't know

50% Yes

50%



51. By what percentage has your improved ATM service availability reduced your operational costs?

Nearly one-quarter (24 percent) of respondents said their improved ATM availability had reduced their operational costs by up to 25 percent, while 14 percent said 26-50 percent, no one said above 50 percent, and 62 percent said they didn’t know.

52. By what percentage have you been able to reduce field engineers’ on-site activities due to your improved ATM service availability?

Just over one-third (21 percent) of respondents said they had been able to reduce field engineers’ on-site activities by up to 25 percent due to their improved ATM service availability, while 17 percent said by 26-50 percent, no one said above 50 percent, and 62 percent said they didn’t know.

Up to 25%

21%

26-50%

17% I don't know

62%

Up to 25%

24%

26-50%

14%

I don't know

62%


For this report, ATM Marketplace conducted in-depth in-terviews with executives from 13 innovative FIs in Europe, New Zealand, North America and South Africa, as well as with Italy’s CartaSi and Servizi Bancari Associati and with U.S. credit union-owned ATM network Co-op Financial Ser-vices and First Data.

Alfa BankIn 2014, Moscow-based Alfa Bank’s ATM network included 3,100 ATMs that it owned and 12,000 ATMs owned by its partner banks.

“We have siloed channel management systems,” said Maxim Daryoshin, head of Alfa Bank’s self-service sys-tems development department, retail business. “We don’t plan to migrate to a single omnichannel management system, as we don’t have a single point of strategic view for all channels and have one independent point of view per channel.”

Daryoshin says Alfa Bank doesn’t have a single omnichan-nel monitoring system, as the bank sees no need for a single system. “Moving to omnichannel management and monitoring would require Alfa Bank to make organizational changes, and this is a cornerstone of the problem,” he said.

Alfa Bank uses an externally supplied ATM monitoring system that staff access from a Web-based operational management console, Daryoshin says.

The bank uses different companies to provide its monitor-ing software and to operate and manage its ATM monitor-ing services. Its monitoring solution offers autonomous configuration of new KPIs without input from the supplier.

“I would be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consulting, in order to provide a single ‘window’ for engineers,” Daryoshin said. “For the same reason, I would also be willing to use a single provider for monitoring, software distribution and release management. Our soft-ware distribution and release management technology is a separate product from our monitoring solution.”

Daryoshin says he is satisfied with Alfa Bank’s current monitoring solution because of its convenience, reliability and stability. The improvement the bank has seen in ATM availability has led to field engineers’ on-site visits being reduced by up to 25 percent, he says.

“The essential KPIs that need to be provided by a monitor-ing solution are uptime, customer availability and cash-in-transit (CIT) operations effectiveness,” Daryoshin said.

Alfa Bank’s monitoring solution and fraud management solutions are both provided by the same supplier, Daryo-shin adds.

Banca MarcheBanca Marche operates approximately 300 branches in Central Italy. “We have silo-based channel management systems and have no plans to migrate to an omnichannel management system,” said Lamberto Spadari, the bank’s

CHAPTER 2Interviews with financial institutions




systems manager. “The different platforms are based on specific functional choices, with integration difficulties.”

Banca Marche also has siloed channel monitoring sys-tems, and currently has no plans to migrate to a single monitoring system due to the “difficulties in undertaking innovative projects,” Spadari said. “This would also require us to make organizational changes.”

Currently, Banca Marche staff use desktop operational management browsers to access their monitoring system, but Spadari says he would like to use Web-based opera-tional management consoles.

Banca Marche uses the same company to provide its ATM monitoring software and to manage its ATM monitoring services, Spadari says. Its monitoring solution doesn’t offer autonomous configuration of new KPIs without input from the supplier.

“I’m satisfied with our current monitoring solution, as the quality of the service is in line with expectations,” Spadari says. “We have no plans to change it.”

Spadari says his requirements for effective ATM man-agement and monitoring are “speed in the analysis and resolution of problems.”

Banco Sabadell“We think it’s better to have an integrated ATM monitoring system that gives a global view of all the channels you man-age,” a spokesperson for Spain’s Banco Sabadell said.

Currently, Banco Sabadell has siloed management solu-tions for its various channels. “We would like to have a more integrated channels management, but at the moment we are developing applications based on big data sys-tems,” the spokesperson said.

Banco Sabadell has siloed channel monitoring systems. “Moving to omnichannel monitoring and management would require organizational changes,” the spokesperson said.

To access the bank’s monitoring systems, staff use desk-top operational management consoles as well as Web-based operational management consoles. “We would also

like to be able to access our monitoring system through native applications for smartphones and for tablets,” the spokesperson said.

“We think that deploying meeters and greeters within bank branches who have a monitoring app on their smart-phones/tablets would help to align staff to the bank’s goals and help reduce out-of-service time and costs,” the spokesperson said.

Banco Sabadell uses an ATM monitoring solution from an external supplier. “We think it’s better to have a market-supplied tool because the functionality is standard,” the spokesperson said. The bank doesn’t think it is necessary to have a single provider for monitoring, software distribu-tion and release management, the spokesperson says.

According to the spokesperson, the essential KPIs that need to be provided by a monitoring solution are:

• Percentage of time available over total time; • Average response time by transaction;• Number of unavailable ATMs.

Banco Sabadell isn’t satisfied with its current monitoring solution, as it doesn’t allow the bank to customize KPIs that it needs, the spokesperson says.



BBVA CompassBirmingham, Alabama-based BBVA Compass is the U.S. subsidiary of Spain’s BBVA.

Ron Hemming, BBVA Compass’ senior vice president of IT director ATM operations/network/enterprise monitoring, says important KPIs are:

• Repeat failures (which ATMs are having repeat perfor-mance issues within a certain timeframe);

• Average first-time resolve percentage; • Average availability time; • Maintenance vendor response time to resolve an issue; • Maintenance vendor average ATM failure resolve time;• ATM parts supply stock availability.

“Consumers expect banks to provide a consistently great experience,” Hemming said. “Consumers will want their bank to allow them to complete transactions where and when they want, which means providing a strong brand across all technologies. The barriers to an omnichannel experience are more likely to appear within the bank itself than with consumers. Getting the bank to focus on a holistic view of the customer experience can be difficult. Having team members change their view of building their widget and instead look at the entire experience from branch, ATM, online banking to mobile apps is the key to being success-ful. Consumers change the way they bank perhaps several times a day using smartphones, tablets, online banking websites and ATMs, so these all need to be consistent.”

Hemming recommends that FIs ensure “their staff are ded-icated to the customer experience vision. Secondly, have a work environment that truly supports a unified culture, and that attempts to knock down the siloes,” he said. “The omnichannel world comprises many different components and requires all hands on deck to support customers and their ability to do their business with the bank. A network team that has the same customer experience vision as the customer-facing channels is imperative. The importance of a robust and reliable network is often overlooked. Make certain to interact with all lines of business that impact an omnichannel environment; everyone needs to be engaged

in order to be successful. Communication is a simple goal and yet is often missed. Make sure to communicate with the bricks-and-mortar locations. The staff at these loca-tions are often your first line of defense for the customer who has an issue using an ATM.”

The need to have a monitoring system in place that will work across all machine types within an ATM fleet is es-sential, Hemming says. “The ability for your monitoring staff to be able to trust the reliability of the monitoring tool allows the staff to quickly and confidently troubleshoot issues and resolve quickly,” he said. “The hardest part of ATM monitoring is separating fact from customer percep-tion. When a customer has a bad experience at an ATM, they often think the ATM is down when that isn’t the case. Being successful at understanding what the customer is truly feeling and experiencing go hand in hand. The cus-tomer doesn’t care that the ATM can deposit money if they are trying to deposit a check and the deposit function isn’t available right now. Having the proper staff and tools to do in-depth trend analysis along with the ATM monitoring tools is a must.”

BECUSeattle-based BECU, the fourth-largest U.S. credit union, operates 211 ATMs and has 43 branches. “We don’t drive our own ATMs, but we do all the monitoring, dispatching and reporting in-house,” said Shirley Taylor, ATM channel manager at BECU. “So we have a hybrid approach.

For several years, BECU has used NCR Aptra Vision (it previously used NCR Gasper Vision), accessing the sys-tem via desktop and laptop consoles. “NCR Aptra Vision gives us insight into our ATM availability,” Taylor said. “Of our 43 branches, only two have a traditional teller line, so ATM availability is key for us. In the other branches, the ATMs act as tellers.”

Taylor says BECU has no plans to deploy interactive teller machines with video links to remote staff. She adds that BECU’s ATMs are 100 percent image-enabled so custom-ers can deposit checks.



“Across our entire ATM fleet including off-premises ATMs, we average 7,200 monthly transactions,” Taylor said. “At our financial centers, we average 12,000 to 15,000 ATM transactions a month. These are just traditional standard ATM transactions. Not all our branches hit the 12,000 to 15,000 mark, but a good majority do, and a good number of our off-premise ATMs are also hitting those numbers.”

BECU uses Inetco Systems’ Inetco Insight software to integrate data into NCR Aptra Vision, as well as Inetco Analytics customer analytics software. “From an overall channel-management perspective, it’s critical to pick up on customer trends as part of ATM monitoring,” says Taylor.

Taylor says BECU’s ATM division is somewhat siloed. “We monitor our ATMs and do escalations from our ATM opera-tions group, not from our IT group,” she said. “We looked at omnichannel monitoring, but don’t think that moving to omnichannel monitoring would buy us anything at this point in time.”

“We don’t put monitoring software on our branch staff’s tab-lets,” Taylor said. “But, if there is a problem at an in-branch ATM or an off-premises ATM, we send a system-generated email to branch staff to alert them before they get com-plaints from customers. If you have downtime too often at your ATMs, you will lose the customer relationship, which means losing long-term revenue from that customer.”

BNL Gruppo BNP ParibasMauro Iannucci, network innovation manager at BNL, the Ital-ian subsidiary of France’s BNP Paribas, says the bank has a siloed approach to channel management and monitoring.

“We don’t have plans to migrate to omnichannel monitor-ing, as we think technology and application monitoring must be ‘channel specific,’” Iannucci said. “Organizational and channel structures are the main barriers to moving to an omnichannel system.”

BNL uses a desktop operational management console to access its monitoring system, but also would like to use Web-based operational management consoles and na-tive applications for tablets. “Our in-branch staff don’t have monitoring duties,” Iannucci said. “But it could be useful to deploy meeters and greeters within bank branches who have a monitoring app on their smartphones or tablets to help reduce out-of-service time and costs.”

BNL uses an ATM monitoring solution from an external sup-plier, and uses the same company for its monitoring soft-ware as well as for operation and management of its ATM monitoring services. “We have an outsourced full-service approach,” Iannucci said. “Developing our own solutions isn’t our business, so we look for third parties committed to provid-ing results. In our ATM environment, the supplier attaches the monitoring system to our ‘application ports,’ and we don’t influence the choice of the specific monitoring product.”

BNL’s monitoring solution offers autonomous configuration of new KPIs without input from the supplier. “The essential KPIs that need to be provided by a monitoring solution are uptime, cash usage, downtime per type, vendor and ma-chine,” Iannucci said.

“I would be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consulting,” Iannucci said. “But I wouldn’t be willing to have a single provider for monitoring, software distribution and release management. Software distribution is managed by an internal department and isn’t outsourced.”

Iannucci says BNL’s monitoring solution has had a very posi-tive effect on ATM service availability since its deployment. . However, BNL isn’t satisfied with its current monitoring solu-tion, as it isn’t XFS-based, and plans to change the solution.

The improved ATM availability BNL has experienced from its monitoring solution has reduced its operational costs by up to 25 percent, Iannucci says. The bank has been able to

“Our ATMs act as tellers for our organization, so availability is critical.”— Shirley Taylor, ATM channel manager at BECU



reduce field engineers’ on-site activities due to its improved ATM service availability by 26-50 percent.

CaixaBankSpain’s CaixaBank has 9,724 ATMs, including more than 1,000 Punt Groc (“yellow point”) advanced multifunc-tion ATMs.

“In a complex environment like CaixaBank’s, where ATMs are more than cash dispensers, it’s essential to ensure the availability of the range of services that customers require at all times,” a CaixaBank spokesperson said. “To achieve this, performance management isn’t enough. You need to study at all times the behavior of each ATM and its users to predict and detect any changes needing to be made in order to continue offering the best service.”

CaixaBank has silo-based management systems and moni-toring systems. “Moving to omnichannel management and monitoring would require us to make organizational chang-es, because of siloed business units,” the spokesperson said. “Since each channel is managed by its own team, the

number of existing infrastructures is high. Overcoming this situation needs deep systems re-engineering to face future technology changes.”

CaixaBank accesses its monitoring system from desktop operational management consoles, but also would like to use Web-based operational management consoles.

“We think deploying meeters and greeters within branches who have a monitoring app on their smartphones/tablets is a good idea,” the spokesperson said. “Branches are the first level of service, so ensuring that [branch staff] can predict and solve as many situations as possible helps our bank improve customer service and reduce costs.”

CaixaBank uses an in-house-developed ATM monitoring solution which the spokesperson says fulfills all the bank’s requirements.

“We use the same company to monitor and operate our ATMs,” the spokesperson said. “This ensures faster service and less downtime.”

CaixaBank’s ATM monitoring services supplier also pro-vides electronic journal collection, storage and consulting. However, CaixaBank manages its own terminal inventory, as this is part of the bank’s assets.

For CaixaBank, the essential KPIs that need to be provided by a monitoring solution are:

• Lack of cash;• Technical non-availability;• Operational non-availability.

The spokesperson says CaixaBank would be willing to have a single provider for monitoring, software distribution and re-lease management. “In an organization like our bank, ATMs are only a part of all the activities, so the fewer providers, the easier to manage,” the spokesperson said.

CaixaBank’s monitoring solution has improved its ATM service availability levels significantly since deployment. But CaixaBank isn’t satisfied with its current monitoring solution and plans to change it, “as it is individual ATM-oriented, and manual data treatment is need for a network view.”



CaixaBank’s requirements for effective ATM management and monitoring are:

• Individual ATM performance KPIs;• Zone performance KPIs;• Total ATM network performance KPIs;• Ability for online new KPI definitions;• Proactive and predictive downtime management.

CartaSiMilan-based CartaSi manages and monitors around 10,000 ATMs on behalf of Italian banks.

“CartaSi is a service provider,” said Denis Gotti, manager of CartaSi’s ATM and POS operations. “The ATMs are installed at the banks, which are our customers.”

“Our service offer includes ATM processing, hardware rental, network services, management and maintenance, monitoring services and application software. We use Auriga’s monitoring services and ATM application software,” Gotti said. “Most of the banks use our processing, network, monitoring and software application services, and 35 per-cent use other components too.”

Gotti says CartaSi has a silobased channel management approach and doesn’t have an omnichannel monitoring system. “We don’t plan to migrate to a single omnichannel management and monitoring system, as each bank uses different channels, and a single omnichannel manage-ment and monitoring system isn’t possible in our business model,” he said.

CartaSi accesses Auriga’s monitoring system from a Web-based operational management console, Gotti says.

Gotti’s recommendation for best practice for ATM manage-ment and monitoring in an omnichannel environment is to improve monitoring systems with operating system errors and ATM driver errors. “My requirement for effective ATM management and monitoring is an affordable and flexible software platform with a Web-based architecture and thin client technology,” he said.

“I think deploying meeters and greeters within bank branch-

es who have a monitoring app on their smartphones/tablets could help reduce out-of-service time and costs,” Gotti said. “It could support the maintenance process and increase the branches’ responsibilities.”

CO-OP Financial Services“My recommendations for best practice for ATM manage-ment and monitoring in an omnichannel environment are holistic management and monitoring that includes hard-ware, software applications, cash management and trans-action processing to maximize the availability and reliability of ATMs,” said Terry Pierce, senior product manager at Rancho Cucamonga, California-based credit union ATM network operator CO-OP Financial Services.

Because it operates disparate systems, Co-op Financial Services doesn’t plan to migrate to omnichannel manage-ment from its current siloed management systems, Pierce says. For the same reason, it has no plans to migrate its siloed monitoring systems to an omnichannel system.



“We use desktop operational management consoles to access our monitoring system, but would also like to use Web-based operational management consoles and native applications for smartphones and tablets,” Pierce said.

“I think deploying meeters and greeters within bank branch-es who have a monitoring app on their smartphones or tab-lets could help reduce out-of-service time and costs,” Pierce said. “Proactive instead of reactive monitoring is good credit union member (i.e., customer) service.”

CO-OP Financial Services’ ATM monitoring software and services are supplied by FIS using NCR’s Gasper Vantage monitoring system. NCR Aptra Vision is the new version of Gasper Vantage, but CO-OP Financial Services hasn’t migrated to Aptra Vision.

“We aren’t satisfied with our current monitoring solution and are planning to change it,” Pierce said.

“The essential KPIs that need to be provided by a monitor-ing solution are availability, incidents, transactions (ap-proved and declined), cash management and status code summaries,” Pierce said. “Our current monitoring solution doesn’t offer autonomous configuration of new KPIs without input from the supplier.”

Pierce says the barriers to moving to an omnichannel sys-tem are disparate systems and legacy infrastructure. “My requirements for effective ATM management and monitoring are a configurable and flexible system and robust report-ing,” Pierce said.

First DataU.S.-based First Data provides outsourced ATM monitoring and management services to FIs, including PNC Bank.

“Our ATM driving and monitoring are outsourced to First Data,” said Ken Justice, senior vice president and ATM executive at U.S.-based PNC Bank. “We provide oversight and have a lot of our own reporting, but we don’t own and operate our own ATM monitoring technology.”

“Legacy infrastructure and operational silos are contribu-tors to the challenges many FIs will face in bringing an omnichannel experience to their customer base,” said

John Balose, director of ATM product management at First Data. “As ATM hardware and software vendors don’t provide switching and processing services, as well as the diversity of online, mobile and tablet technology providers, common standards don’t exist for the exchange of infor-mation between channels. So data and hierarchy protocols for channel preference and a common way to manage that experience can present a unique set of obstacles. With the myriad of technology solutions available to FIs to sup-port each channel and the obvious challenge of each silo wanting to control their consumer experience, selecting a vendor to develop and deliver a common user experience that meets the needs of each channel will be a challenge.”

Balose says many metrics can be measured by an ATM channel monitoring solution. “However, essential compo-nents must include the basic answers to the high-level questions of ATM availability, transaction monitoring and fraud prevention,” he said. “These metrics provide the fundamental answers an FI must understand about its ATM channel performance: ‘Are my ATMs up and available to consumers or do they need to be serviced?’; ‘How many transactions are the ATMs processing so I know they are at useful locations?’; ‘Are my ATMs getting hit by fraud-sters and causing losses for my FI?’”

“As a technology provider for the ATM channel, we think that, in addition to the KPIs related to ATM monitoring, the big ability that many FIs need is the capability for remote management and settlement of their ATM fleet,” Balose said. “The ability to solve problems remotely, such as faulty security keys, or settle their ATM cash position at the end of the day enables FIs to manage many ATMs without the need for support from their branch counterparts or service provider.”

First National Bank (FNB)Abdul Aziz Cassim, Head of Self-Service Delivery at South Africa’s FNB, has the following recommendations for best practice for ATM management and monitoring in an om-nichannel environment:

• Provide a simple, compelling, and consistent customer experience across all channels;



• Optimize existing investments in people as well as technology,

• Help your bank transform itself from delivering trans-actions to delivering personalized financial advice;

• Deliver services in a secure environment that estab-lishes and maintains customer trust;

• Security will be at the forefront of all these solutions.

FNB manages its distribution channels as siloes, says Cassim, and the bank plans to continue to operate in siloes for the time being.

“Within our SSD ATM environment we plan on rolling out a single monitoring system,” Cassim says. “Each silo has its own monitoring capabilities. Migrating to a single om-nichannel monitoring system isn’t on the cards yet.”

Moving to omnichannel management and monitoring would require FNB to make organisational changes. “His-torically, we have operated in a silo mentality, but we are slowly moving towards integrating all our channels to have an all-round improved customer experience,” says Cassim.

FNB is rolling out a new monitoring system offering access via a desktop operational management console from an external supplier. The system will replace a platform pro-vided by a different vendor. “We will manage and run this new system in-house,” says Cassim. “Configurations and customization will be carried out internally.”

The bank would like to be able to access its monitoring system from desktop operational management consoles, Web-based operational management consoles, and spe-cific native applications for smartphones and tablets.

FNB’s monitoring solution doesn’t really offer autonomous configuration of new KPIs without input from the supplier. “To an extent, we have an internal configuration capability, but any big changes to code are outsourced,” Cassim says.

FNB would be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consulting. “Transactional monitoring and hardware monitoring are both commodities that we will outsource as long as we have full control and transparency,” says Cas-

sim. “We wouldn’t be willing to have a single provider for monitoring and for terminal inventory capabilities, as these parts of the business are kept separate. Also, we wouldn’t be willing to have a single provider for monitoring, software distribution and release management. This is because we build our own software, and these parts of the business are kept separate.”

Integration between the back-end systems and processes will provide the biggest hurdle to overcome in moving to an omnichannel system, Cassim says. “The lack of current inte-gration makes it a massive task,” he says. “Also, some sys-tems are in-house and others are outsourced, and integration between third-party vendors can be sometimes tricky.”

Kiwibank“Kiwibank doesn’t have an omnichannel banking environ-ment at this stage, but, from a self-service perspective, we would like to move into this space,” said Neesha Vasan, channel manager of self-service at New Zealand’s Ki-wibank, a subsidiary of New Zealand Post. “Our technology platform will need to be developed to make this happen.”



Moving to a single omnichannel management system is also on Kiwibank’s roadmap for some point in the future.

“Our technology roadmap for an omnichannel system will need to be developed,” Vasan said. “My understanding from an ATM perspective is that we need a technology platform to enable an omnichannel system for our ATMs. Currently, we have Diebold ATMs that have layers of different software that don’t integrate well. Therefore, robust ATM error diag-nostics has been a challenge. We need to upgrade our ATM software stack and introduce a technology platform that will enable omnichannel benefits.”

Kiwibank has a siloed approach to channel monitoring, Va-san says. “NCR monitors our ATMs via its Gasper system,” she said. “We would like to be able to access our monitoring system via Web-based operational management consoles.”

“We have access to NCR Aptra Vision, but we haven’t been using the application a lot, as we’re currently receiving train-ing for the application,” Vasan said.

National Bank of Canada“National Bank of Canada has a siloed approach to channel management,” said Chantal Morel, enterprise architect at National Bank of Canada, one of Canada’s largest banks. “We don’t plan to migrate to an omnichannel management system, as we think we can have a better management and alert console for our ATM fleet when we use a system spe-cifically built for the ATM channel. It’s important to manage your ATMs and banking kiosks in a single system, but not all your channels.”

In addition, National Bank of Canada has siloed channel monitoring systems, Morel says. “We use an externally supplied ATM monitoring system, which we’re satisfied with,” she said. “We use the same company to provide our monitoring software and to operate and manage our ATM monitoring services.”

Raiffeisen Bank International“With all the available options (for example, cash deposits, full self-service terminal, bill payments), choosing the right ATM strategy is complicated,” said Ingrid Krenn-Ditz, a

spokeswoman for Vienna, Austria-based Raiffeisen Bank International. “Besides, the ATM strategy has to fit with the overall omnichannel strategy such as what is the role of branches, e-channels, etc. That’s the hardest part. Later on, it’s easier to decide on ATM management and monitoring solutions. Furthermore, all channels have to fit together, so the ATM (or, in our case, the self-service) strategy has to be aligned with the bank’s overall strategy.”

Currently, Raiffeisen has siloed channel management systems. “For the moment, we don’t plan to migrate to an omnichannel management system,” Krenn-Ditz said. “We are still in design discussions, such as what do we mean by omnichannel management in the first place.”

Raiffeisen doesn’t have a single omnichannel monitoring system and doesn’t plan to migrate to a single omnichannel monitoring system.

“Migrating to omnichannel management and monitor-ing wouldn’t require us to make organizational changes,” Krenn-Ditz said. “This is because the infrastructure is operated by a single business unit, and the channels shouldn’t be affected by a monitoring or management system. The barrier to moving to an omnichannel system is mainly our central software solution, which is at this time only silo-based.”

Raiffeisen uses a Web-based ATM operational manage-ment and monitoring system that is currently accessible only via PCs inside its corporate network. The bank also would like to access the Web-based system via tablets and smartphones.

Krenn-Ditz notes that the bank’s ATM management and monitoring system handles all of its self-service equipment, such as statement printers, cash-recycling units and bill-payment terminals.

“We don’t think deploying meeters and greeters within bank branches who have a monitoring app on their smartphones or tablets is a good idea,” Krenn-Ditz said. “Meeters and greeters have to take care of customers and shouldn’t fix machines.”

Raiffeisen uses an ATM monitoring solution from an external supplier that also provides the client software for its ATMs.



“This means integration and interoperability are perfect, and we’re very satisfied with the solution,” Krenn-Ditz said. “ATM operations and management are done by our own staff.”

Servizi Bancari Associati“We don’t have a single omnichannel management system, nor do we have an omnichannel monitoring system,” said Guido Lingua, e-banking services manager at Italy’s Servizi Bancari Associati. The company provides IT services includ-ing ATM and POS terminal management services to Italian cooperative banks and small FIs. It currently has 563 ATMs under management.

“We use a Web-based operational management console to access our monitoring system,” Lingua said. “I would like to be able to use native application for smartphones and tablets.”

“Deploying meeters and greeters within bank branches who have a monitoring app on their smartphones or tablets is a good idea, as they would be accessible at any time,” he said.

Servizi Bancari uses an ATM monitoring solution from Auriga which also operates and manages the bank’s ATM monitoring service. In addition, Servizi Bancari’s monitoring modules for digital and mobile banking are pro-vided by Auriga.

Lingua says that since deployment, the company’s monitor-ing solution has improved ATM service availability levels significantly. “The monitoring system is effective, effi-cient and low cost,” he says.

The company has been able to reduce field engineers’ on-site activities due to its improved ATM service availability by up to 25 percent.

“My requirement for effective ATM management and moni-toring is automatic controls with SMS and email alerts,” Lingua said.

UBSSwitzerland’s UBS takes a siloed approach to channel management and monitoring, a spokesperson says. “Mov-

ing to omnichannel management and monitoring isn’t in focus today,” the spokesperson said. “We are focusing now on transforming and building up our channels — for example, the rollout of a new generation of non-cash ter-minals in 2016.”

However, moving to omnichannel management and moni-toring wouldn’t require UBS to make any organizational changes, as its organizational setup would fit already, the spokesperson says.

UBS staff access the bank’s monitoring system from desk-top operational management consoles. “We would like to be able to also use Web-based operational management consoles and native apps for tablets and smartphones,” the spokesperson said.

UBS deploys meeters and greeters equipped with mobile devices in its branches. “We haven’t put monitoring apps on their smartphones or tablets, as the current low complexity of functionality and the availability of the systems doesn’t justify such an investment,” the spokesperson said.

Currently, UBS uses an internally developed monitoring solution, but its future strategy involves using an off-the-shelf system.

UBS would be willing to use the same company to provide its monitoring software and to operate and manage its ATM monitoring services. “The current strategic thinking in



Switzerland in the ATM business is to outsource as much as possible of services such as that,” the spokesperson said.

In addition, UBS would be willing to use a single provider for terminal monitoring and for electronic journal collection, storage and consulting, and also for monitoring and for terminal inventory capabilities. “This is the current strategic roadmap thinking in Switzerland with Project ATM Futura,” the spokesperson said.

Project ATM Futura is open to all Swiss banks, and partici-pation is optional. Two of its goals are the standardization of ATM software and the creation of a buying syndicate to establish a joint ATM monitoring system for Swiss banks.

“Our current ATM monitoring solution isn’t really a state-of-the-art solution, and we are planning to change it,” the spokesperson said.

The essential KPIs in a monitoring solution are availability (processes, services), transactions, volumes, events, stock and alerts, the spokesperson says.


Carmine Evangelista, chief technology officer at AurigaQ. Can you estimate the benefits in terms of increased ATM availability and greater operational efficiency that FIs have seen from using Auriga’s WWS Proactive Monitoring Manager software?

A. In a medium-size ATM fleet (2,000-3,000 ATMs), after nine months of using the WWS Proactive Monitoring Man-ager system, we observed an automatic problem resolution success rate of nearly 12 percent. This was reflected in:

• An average 5 percent reduction in site visits by the hardware maintenance provider;

• An increase that can reach 4 percent (in some cases, 5 percent) in the average availability of terminals in the customer’s ATM fleet.

These figures relate to the Italian market, where FARO, a performance monitoring entity set up by Banca d’Italia, the Italian Central Bank, measures banks’ ATM service levels, and there are penalties for each bank that falls below the minimum service level of 95 percent.

The adoption of a proactive system such as WWS Moni-toring results in a big reduction of the number of out-of-service ATMs due to conditions that can be managed by branches, such as banknote shortages, paper out, simple jam resolution, etc.

Operational efficiency is positively influenced by our system, as it enables the staff who directly manage an FI’s ATMs to efficiently identify and solve problems on the devices, and they know their supervisor can verify if this

has been done. This generates a positive loop in the FI’s operational activities.

Using Auriga’s WWS Monitoring, FIs typically improve their self-service network availability by a full percentage point over previous levels. Thus, several of Auriga’s clients have achieved more than 98.5 percent network availability as confirmed through independent testing.

Q. What are your views of the return on investment that banks can achieve with your solution?

A. There are several benefits banks can expect to achieve with a solution such as WWS Proactive Monitoring Man-ager, and these benefits directly affect the costs of the FI’s ATM infrastructure management:

• The number of on-site maintenance operations will decrease, with an immediate benefit in terms of the cost of the service. This is dramatically affected by the pro-activity of the monitoring system, where some “signals” can be used to diagnose future faults in advance.

• The ATMs’ increased availability allows a greater number of operations, and, using the same number of ATMs, the FI can add different functions with a high ROI value.

• The positive loop described above increases the FI’s operational efficiency, with an ROI in terms of fewer total hours spent by operational staff managing their ATM fleet.

Q. Can you give me a brief overview of the key features of Auriga’s ATM monitoring solution?

CHAPTER 3Recommendations from consultants and vendors




A. WWS Proactive Monitoring Manager is a robust, complete and proven monitoring solution for self-service networks, including ATMs, kiosks and assisted service devices, which generates meaningful data anytime and anywhere and enables FIs to make empowered decisions that increase business performance and drive better con-sumer experience, attraction and retention.

Far beyond a simple reporting tool, due to its data-gather-ing correlation and analysis functions, our system provides proactive monitoring rather than reactive monitoring. Some of the key features of the solution are:

• Holistic and accurate reporting view;• Statistics and graphics;• Technical monitoring and transactional monitoring;• Remote operations management and commands; • Alarm management;• Ticketing system related to incident management;• Self-healing capabilities;• Monitoring user activity • Alert system;• Complete terminal inventory management system;• Software upload/download and release management; • Electronic journal storage, collection and consultation;• Self-service terminal handling/driving; • Preventive maintenance and real-time engineer track-

ing activities.

WWS Proactive Monitoring Manager is already deployed on a large scale by European banks, including multibank institutions. The system can be deployed as part of a fully integrated Auriga WWS Omnichannel solution or integrat-ed directly with the bank’s existing infrastructure.

WWS Proactive Monitoring Manager is highly modular, not only in terms of the service channels it supports — such as ATMs, assisted-service devices and kiosks, but also as it relates to the shared business services available through each channel — from basic monitoring features to proac-tive monitoring, software downloading and electronic jour-nal management. Banks can deploy any combination of

WWS Monitoring capabilities to augment or replace their existing infrastructure in order to optimally balance their functionality, time to market and investment objectives.

Q. What is your view of the business case for deploying proactive ATM monitoring technology?

A. When moving teller operations to self-service and assisted-service devices, complexity and cost are added to the self-service channel. The more complex the chan-nel becomes and the greater the variety of transactions performed, the bigger the challenge is for the monitoring solution. A large part of this comes from the data FIs will require to understand — not just which physical aspects of their network are working, but also what the customers are using and how they are using it.

Consequently, banks must move toward more integrated solutions that provide a holistic view of the network, en-compassing hardware status, cash management, trans-action data, etc. Choosing the right monitoring solution to manage your self-service network means significant advances in availability, customer experience and busi-ness performance.

Q. What are the barriers or challenges faced by ATM de-ployers wanting to deploy ATM monitoring solutions in an omnichannel environment?

A. One of the big challenges is that there is a strong pressure to maximize the lifecycle of legacy infrastructure investments.

WWS Proactive Monitoring Manager has been designed to be easily deployed to protect and complement existing legacy systems. As it’s based on an “agent-server archi-tecture,” WWS Monitoring can be easily integrated into the FI’s existing environment, as it is easily integrated with third-party ATM software applications as well as third-party trouble ticketing systems. The WWS architecture and standardized connector components ensure that new data providers can be connected to the system without disrup-tion to the existing business services.

Q. What are the essential KPIs that need to be provided by an ATM monitoring solution?



A. Some standard KPIs must be provided by default by a monitoring system in order to provide a summary of the performance of the whole ATM network or of a specific ATM. The goals of these performance metrics are twofold: to provide a real-time indication about specific manage-ment issues, and to compare the current situation with a similar one in the past, in order to evaluate improvements or identify deterioration in performance.

Standard KPIs normally are related to the service level and to the volumes that the ATM network is able to reach, such as availability, number of incidents and number of cash-outs, but several KPIs can be marketing oriented.

Another class of KPIs is related to qualitative performance, such as:

• Average transaction time;• Number of transactions aborted (i.e., “Is my transaction

procedure simple and appropriate?”)

Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an om-nichannel environment?

A. FIs can derive many benefits from choosing a proven, vendor-independent solution to monitor the performance of their network and increase availability. For example, there is no cross-vendor conflict of interest, and the solution’s performance on the self-service network is achieved with complete neutrality on the hardware components.

In addition, a set of integrated tools can increase the power of the whole monitoring system in an omnichannel environ-ment. For example, Auriga provides two integrated apps:

• Branch Staff Tablet App — a productivity tool that combines marketing and sales opportunities that can be addressed by meeters and greeters, with real-time in-formation about the branch’s self-service hardware and the customer’s transaction history. Thus, branch staff receive all the necessary information directly from their tablet in order to increase the availability of in-branch self-service devices and reduce the costs of unneces-sary engineering callouts;

• Field Engineer App — a mobile and tablet app that pro-vides support for field engineer dispatching, tracks the field engineer’s actions step by step, provides calcula-tions for optimal routes and feeds data into an asset-management system.

DAVID SMITH, business development manager at Auriga

1. Improvements in ATM availabilityATM availability is a combination of several factors. ATM monitoring software is certainly very important, but opera-tional procedures and the SLAs (service level agreements) defined with hardware maintenance teams and CIT provid-ers are also important also.

Auriga’s customers have typically improved their ATM avail-ability by up to one percentage point after deploying WWS Proactive Monitoring Manager. If you have a big ATM fleet and your availability increases from 98 to 99 percent, this is a very significant improvement. Moreover, in Italy banks are required to guarantee ATM availability of at least 95



percent or face penalties, so it is a major effort to increase this percentage by half or by one percentage point.

Our customers also have reported significant improve-ments in efficiency. In many cases, the size of the opera-tional team required to manage the ATM fleet has been reduced by 50 percent or more. However, a significant element of these efficiency savings are more attributable to Auriga’s WWS ATM Smart Client technology rather than purely its monitoring software.

For example, one of our largest customers had 56 dif-ferent versions of ATM software prior to installing WWS. These software variations were the result of different vendor hardware, different models, different peripherals, etc. Once WWS was installed, all the customer’s ATMs ran the same version of WWS ATM Smart Client. As a result, the system’s complexity was significantly reduced (56 ATM software versions reduced to one). This had a profoundly positive impact on the reduction of downtime even before the monitoring advantages of WWS Monitoring were taken into account.

2. ROIThe remote management facilities within WWS Proactive Monitoring Manager generate substantial savings due to reduced on-site maintenance costs. These facilities include the ability to issue device/ATM reset commands from the central location, automated (self-healing) rules that can respond immediately to various event and status messages with escalation to human operators if needed and a variety of remote diagnostic services. It’s estimated that between 30 percent and 40 percent of on-site main-tenance costs can be eliminated through remote (central) resolutions.

Further ROI gains can be achieved by virtue of the inte-grated tools within WWS Proactive Monitoring Manager. For example, some customers use third-party tools for software distribution to their ATMs. WWS Monitoring includes an integrated software download manager for the installation of operating system patches, smart cli-ent upgrades, delivery of removable files and retrieval of electronic journals. As a result, customers using third-party

software distribution tools can discontinue the license fees on these tools.

3. Key featuresThe WWS Monitoring’s trouble ticketing system can be integrated with a hardware maintenance firm’s service desk so tickets can be automatically opened on the maintenance vendor’s system for increased efficiency and traceability.

Auriga provides ATM monitoring and maintenance services for a number of its customers in Italy. As a consequence, Auriga continues to enhance WWS Monitoring through direct practical experience.

WWS Monitoring is modular, so customers can have terminal driving and monitoring as a package, or they can use their existing terminal driving software and just use Auriga’s monitoring software as a stand-alone tool.

4. DashboardingYou need dashboarding in order to see the state of health of your ATM fleet. WWS Monitoring’s dashboard is divided into different views for different types of problems that occur, such as low cash or out of cash. It can also provide geographical views.

Using WWS Monitoring, customers can view ATM prob-lems either graphically or in report form, and can see what kind of service levels they are achieving from vendors for their network.



STACY GORKOFF, vice president of marketing at Inetco Systems

Q. What are the key issues in ATM monitoring and man-agement?

A. In today’s self-service environments, it’s more likely to be the dynamic applications, networks or back-end connec-tions that cause consumer interactions to fail or slow down – not the ATM itself.

So it’s questionable for FIs to base their success on the metric of overall ATM availability. Although it’s still common to measure the percentage of time ATMs can dispense cash, this metric alone doesn’t take into account parameters such as location, time of day or peak transaction times. This means that, with the overall ATM availability metric, we don’t get true insight into how the consumer is affected, or what the impact of lost opportunities is.

Today’s FIs are putting a greater emphasis on understand-ing and analyzing the consumer experience. How many transactions weren’t completed? How many negative cus-tomer experiences occurred at an ATM during an outage? How did this impact my brand, and what was the impact on customer acquisition and retention costs?

FIs are interested in customer impact metrics such as: • Impact of lost opportunities – still considering ATM

availability, but based on parameters such as location of ATM tiers/groups, time of day or peak transaction times;

• Transaction completion rates and failed customer inter-actions – this gives a better measurement of how ATM network performance directly relates to the customer experience;

• Transaction slowdowns – how many transactions didn’t complete as expected by the customer, and as regu-lated or agreed to by the service provider;

• Cash usage rates – to predict cash in/out; • Average queuing times at ATMs.

It could be an FI’s ATM network is available 98 percent of the time, but most of the outages or performance issues oc-cur at peak usage times. Also, maybe the ATM network is at

89 percent availability, but the FI is operating at 99 percent during peak usage times. By incorporating customer impact metrics into their success criteria, FIs can maximize the investment in ATM and real-time transaction monitoring technologies as a customer loyalty and incremental revenue generation tool.

Q. What is your view of the business case for deploying proactive ATM monitoring technology?

A. ATM deployers face major challenges. In addition to maximizing their ATM uptime, they need to manage security risks, deliver optimal customer experience and generate meaningful data about their ATMs and customers to make better management decisions. But this is becoming more difficult to do, due to:

• Larger volumes and more diverse electronic transactions ATM channel managers are facing an explosion

in the volumes and types of electronic consumer interactions and service types they must support.

High-value transactions are now mixed with low-value transactions – everything from checking bank balances to depositing six- or seven-figure checks.

Obtaining complete, real-time “actionable intelli-gence” is more challenging than ever before.

• Greater infrastructure complexity There are a greater number of multivendor

devices, fraud and security applications, EFT net-works and channel options to manage, including connections to third-party bill payment processors, remittance services, etc.

Many of today’s consumer transactions are often cross-channel or cross-institution, where start and end points are different. A transaction may start at an ATM but end at a mobile phone, or it may be that the back-end approvals are coming from any number of value-added service and host authori-zation connections.

Best practices such as active/active switch deploy-ment are becoming the norm, and so are distributed data centers, meaning that consumer transactions



now follow multiple paths – some go to various pay-ments switches, and more go to external applica-tions servers and third-party service providers.

• New application and system architectures Many ATM channels now consist of multivendor

ATMs, third-party Software-as-a-Service, virtual, mobile and Web-based application services, where real-time performance monitoring is often limited by lack of support for all transaction types and protocols.

• Greater consumer expectations Transactions need to complete within cut-off times

or response time targets to meet customer (and in some cases regulatory) expectations.

All this makes the task of monitoring integrated channel deliv-ery and the end customer experience increasingly difficult.

For ATM deployers, the ability to fix problems faster, in-crease transaction-based revenue opportunities and deliver an amazing customer experience starts behind the scenes, and indeed may have begun with ATM monitoring.

But transactions now take multidimensional journeys through the ATM environment. They move through many links, servers and applications on their journey through the network. Whether there is risk of critical customer transac-tions failing or slowing down when you least expect them to, depends on the ability to achieve a real-time, holistic view into the end-to-end transaction journey, not just the individu-al software, hardware or networking components.

Real-time transaction monitoring solutions overcome many of the data collection and ownership challenges that are worsening due to infrastructure complexity and growing transaction types and volumes. Some of the key solutions provided by real-time transaction monitoring include:

• You don’t have to worry about trying to access and piece together fragmented data that is owned by mul-tiple teams.

• With automated end-to-end transaction correlation, visibility into a multivendor, multiprotocol payments environment isn’t an issue.

• You can significantly reduce the operational costs associated with time and resources to find the root cause of issues that need repair. With a more proactive approach to performance isolation, you can find and resolve issues before your customers complain.

Q. What are the barriers or challenges faced by ATM deployers wanting to deploy ATM monitoring solutions in an omnichannel environment?

A. The main barrier for people wanting to deploy ATM monitoring solutions is proving the value proposition to ex-ecutives who hold the buying power in their FI. This is why the more scalable a monitoring solution is, beyond the ATM channel, the better.

It’s also why the centralized capture and correlation of cus-tomer transaction data is becoming so important. It instantly widens the value proposition by making it easy for channel managers, marketers, operations teams and data analysts

to instantly access the transaction data and customer ana-lytics they need to deliver more value to existing customers, acquire new ones and improve profitability through better ATM placement and service offerings.

FRANCESCO BURELLI, partner at Innovalue Management Advisors

Q. Can you estimate the benefits FIs have seen from using the new generation of proactive ATM monitoring systems?

A. ATM availability is the outcome of several factors, includ-ing the type of monitoring systems deployed and how these are leveraged to take preventive or remedial action. Overall, we’re seeing three trends taking place:

• The increased investment in and sophistication of ATM monitoring systems;

• The increasing use of third-party/not-OEM ATM moni-toring systems;

• An ongoing wave of internalization where ATM opera-tors move the ATM monitoring functions in-house. This is particularly the case when the same outsourcer man-ages the ATM monitoring as well as the ATM support.



Based on our experience, we’re seeing increased avail-ability, improved ATM security and an overall optimization of ATM operations through the implementation of proactive ATM monitoring systems.

Q. What are the barriers or challenges faced by ATM de-ployers wanting to deploy ATM monitoring solutions?

A. Legacy ATM infrastructure is by far the most significant barrier to the deployment of ATM monitoring solutions. While siloed business units can potentially prove a chal-lenge, the nature of the ATM business is such that a unified channel management approach is the best viable approach to ATM fleet management, regardless of the ownership of the service being deployed through the ATM.

A unified ATM monitoring solution owned by the ATM channel management unit is in the best position to share information and work together with the other parts of the business in order to optimize the services provided through the ATM.


A. The list of indicators can be summarized in two catego-ries: real-time and historical indicators.

Real-time indicators include:• Status indicators – for example, the actual ATM status

(e.g., idle versus dispensing versus providing other ser-vices), cash levels and other dynamic indicators (e.g., number of withdrawal operations completed and value of cash dispensed). Some of these indicators should be referenced against historical trends (e.g., daily season-ality trends) in order to highlight anomalies of changes in behavioral patterns that could either require some optimization and adjustment or require investigation of unusual behaviors.

• Fault information – for example, type of fault and time since fault occurrence.

Historical indicators include statistical data about status and fault information that can be used for real-time benchmark-ing as well as for planning purposes.

Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an omnichan-nel environment?

A. ATM monitoring is a mission-critical function of any ATM management that has an impact both in terms of ATM per-formance as well as in spotting and limiting fraud and crime losses. From our perspective, the best practices are:

1. ATM monitoring is best performed by a single func-tion/unit monitoring the whole set of ATM services and capable of providing regular feedback to the other func-tions. ATM monitoring should be jointly designed and regularly revised as a service unit that is supplied to other strategic business units within the wider organiza-tion. KPIs should be designed and set in a way to best serve both the spot management of the channel as well as to provide input to each service’s strategic planning.

2. Adopt a unified and comprehensive monitoring ap-proach to the ATM channel. This includes any third-party performance across all services that are provided through the ATM fleet.

3. Adopt a real-time monitoring platform capable of provid-ing a view down to a single transaction level. This has to be scalable, highly configurable and easily connected to analytics software solutions.

4. Integrate and automate. Performance monitoring should be tightly integrated with a analytics platform as well as with a workflow solution whose reach should extend to the other units providing services through the ATM as well as to key internal and external strategic suppliers.



ED O’BRIEN, director of Mercator Advisory Group’s Banking Channels Advisory Service

“It’s almost foolhardy not to have ATM systems monitoring,” O’Brien said. “It’s like preventive maintenance for your home or car. Using ATM monitoring technology that gives you advance warning of problems means you can take care of is-sues ahead of peak time. For example, if you detect that the receipt printer is about to fail, and you know that most people get paid on Friday and then withdraw their pay packet at an ATM, you can do the repair by Wednesday. This will ensure an optimum service level for your customers.”

Running ATM monitoring systems means that ATM deploy-ers can save on field engineer costs, as they don’t need to send field engineers out on routine maintenance inspec-tions to check every ATM, O’Brien says.

“ATM monitoring that feeds into a dashboard is very useful for bank executives,” O’Brien said. “They can tell how wheth-er they are getting 99.99 percent or 99.9 percent availability.”

Newer ATMs have more functionality, so they are more complex and need to be monitored more closely, O’Brien says. “Being able to monitor not just ATMs but also network performance is important, as network uptime is critical,” he said. “For example, if there is a network feed problem and you operate ATMs with a video teller function, then you can redirect the video feed to another call center.”

Systems monitoring helps to provide an outstanding customer experience, O’Brien stresses. “A bank executive once told me that the worst thing is when a customer of your bank calls you to say an ATM isn’t working,” he said. “If you have too much downtime at your ATMs, you will lose your customers.”

ANDREW MARTIN, CEO of Retail Bank Consulting Group

Q. Can you give an estimate of the benefits FIs have seen from using the new generation of proactive ATM monitor-ing systems?

A. Proactive maintenance is a world apart from the tradi-tional world of ATM monitoring, as even simple tasks such as remote reboot become the norm, which minimizes the need for field services. Indeed, we see remote diagnostic tools removing the need for FLM (first line maintenance), as this can now be performed remotely. The benefits to the ATM estate owner are reduced cost of ownership, better service levels and greater uptime for the ATM estate. The ROI for the estate owner is immense.

Q. What are the barriers or challenges faced by ATM deployers wanting to deploy ATM monitoring solutions in an omnichannel environment?

A. The cost of change is large for banks and IADs, as they must change not only their monitoring tool but also the pro-cessing platform to one that allows remote interaction with the ATM. There is then also a knock-on effect on the com-munication infrastructure, as this must be aligned as well.


A. The essential KPIs are time to fix, uptime and cost of ownership linked to maintenance costs. All of these lead to higher uptime and lower cost of ownership.

Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an omnichan-nel environment?

A. Several benchmarks exist. However, the key ones for us at Retail Bank Consulting Group are moving from an aver-age 18 FLM and SLM (second line maintenance) visits per annum to six to nine visits, along with availability rising from 98 percent to 99 percent.

The traditional method of managing ATMs through physical contact is the same as diagnosing a faulty car by disman-tling key elements, whereas today cars are diagnosed through computer links. The world of managing ATMs has changed totally, and estates can now be managed remote-ly very efficiently with field visits only required in extreme circumstances.



We at Retail Bank Consulting Group manage ATMs remote-ly in Europe and the U.S. from a 24/7 help desk in the U.K. This couldn’t happen in the old world of ATM monitoring.

JIM TOMANEY, managing director of Q-ATM

“Many banks have legacy ATM systems and legacy ATM driving switches that are 15-20 years old,” Tomaney said. “So they have an old-fashioned approach to ATM monitoring.”

Tomaney recommends that ATM deployers include up-graded monitoring technology when adding new features or new infrastructure to their ATMs. “When banks upgrade their ATM switches from Base24 to Base24 EPS or up-grade from Windows XP to Windows 7, that’s a good time to upgrade their monitoring system,” he said.

The vast majority of the effort in upgrading ATMs is not the technology itself, but rather the implementation of it, Tomaney says. “I think the process changes are the real barrier to implementing new monitoring technology,” he said. “Most banks aren’t organized in such a way as to take advantage of omnichannel monitoring from a single platform. For example, the ATM business unit will monitor its ATM channel and the online banking department will look after the online channel.”

“A best practice in ATM monitoring is to use software that puts a virtual agent on the ATM at the XFS level to monitor the machine,” Tomaney said. “The virtual agent can take care of problems locally and send reports to the help desk. In the past, ATMs were monitored by data being put into the messages sent to the transaction host. So the Base24 system would get a transaction request that included data for monitoring purposes, which is a very 1990s approach. In the XFS world, you can have multivendor software. This means that any application can register with the XFS layer, including transaction monitoring programs from third-party vendors.”

As an alternative to fixing a problem locally, the virtual agent can send the event to the help desk, which will have rules for interpreting incoming events and for send-ing commands to the agent, Tomaney says. This means

that the help desk can instruct the agent via XFS to reset whatever isn’t working.

“Very few banks can add value to monitoring by doing it themselves,” Tomaney said. “They do better to outsource ATM monitoring to a third-party organization that can automate the process. Real success in monitoring involves linking monitoring to remedial action as soon as possible so that responses can be automated where possible, and, if not, a field engineer is dispatched to fix the problem.”

DANNY ROGGE, owner of Rogge Consult

Q. Can you estimate the benefits that FIs have seen from using the new generation of proactive ATM monitor-ing systems?

A. In modern branches where human cash tellers no longer operate, it’s mandatory that self-service equipment is highly available. Unavailability means customers cannot be served with cash.

Operational efficiency delivers a tangible benefit. In a major bank with 2,500 ATMs, a state-of-the-art monitoring system will easily generate savings of 32,500 hours per year. That’s the equivalent of 20 full-time employees.


• End-to-end availability of customer functions such as cash withdrawal, cash deposits;

• Technical availability of self-service systems (e.g., card reader out of service);

• End-to-end reasons for unavailability of customer functions (e.g., network unavailable, out-of-cash);

• Incident rate;• Call rate.

As well as availability-oriented KPIs, it’s useful to provide several business-related KPIs such as:

• Average transaction times;



• Average amount withdrawn, deposited;• Number of notes;• Transaction frequency related to time of day, time of

week, time of month.

These business KPIs will allow FIs to install the right type and number of ATMs in the right locations, which could in turn lead to savings of up to 10 percent and more in the number of systems installed.

Cash deposit and cash recirculation systems add a signifi-cant number of KPIs, including:

• Jam rate;• L1 (invalid note), L2 (false note), L3 (suspect note)

and L4b (genuine but unfit for recirculation) rates per denomination;

• Cassette fill levels.

Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an om-nichannel environment?

A. Include as many business-oriented KPIs as possible, and provide business-oriented monitoring at the branch level.

Integrate as much as possible with other channels’ moni-toring systems (e.g., if a self-service banking channel uses the Internet banking backend for transfers, then the unavailability of that backend function will lead to unavail-ability of the transfer function at the ATM. So ATM users can be warned upfront that the function is unavailable).

Integrate ATM monitoring with incident and problem man-agement systems, and with cash management systems.

Auriga, with office in Italy, the UK, France and Germany, is one of the leading European suppliers of software and solutions for omnichannel banking. It provides financial institutions with products, services and consultancy for managing self-service, Internet, mobile and branch banking. Auriga has a proven ability to help banks improve their efficiency and competitiveness. For more information, visit http://www.aurigaspa.com/eng/

ATMmarketplace.com, owned and operated by Louisville, Ky.-based Networld Media Group, is the world’s largest online provider of information about and for the ATM industry. The content, which is updated every business day and read by business and industry professionals throughout the world, is free.

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“Mobile Wallets: Moving Beyond Pilots”Mobile Payments Today white paper sponsored by Aurigahttp://www.mobilepaymentstoday.com/whitepapers/mobile-wallets-moving-beyond-pilots/

“Windows 7 ATM Migration Guide,” by Robin Arnfield, Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/8593/16674

“Four Benefits of Using a Multichannel Architecture to Manage ATM Networks”ATM Marketplace white paper sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/four-benefits-of-using-a-multichannel-architecture-to-manage-atm-networks/

Auriga showcase on ATM Marketplacehttp://www.atmmarketplace.com/companies/showcases/auriga-spa/

“WWS ATM: A world class ATM management solution”ATM Marketplace white paper sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/wws-atm-a-world-class-atm-management-solution/

“WWS one to one ATM Marketing Solution”ATM Marketplace white paper sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/wws-one-to-one-atm-marketing-solution/

“WWS Proactive Monitoring Manager”ATM Marketplace white paper sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/wws-proac-tive-monitoring-manager/

“Global ATM Market and Forecasts to 2020” by RBRhttp://www.rbrlondon.com/reports/global

REFERENCESATMIAwww.ATMIA.com

“ATM Future Trends 2015” ATM Marketplace report sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/atm-future-trends-2015/

“ATM - Mobile Integration Guide: Strategies for Successful Omnichannel Banking,” by Robin ArnfieldATM Marketplace report sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/atm-mobile-inte-gration-guide-strategies-for-successful-omnichannel-banking/

“A successful omnichannel banking for a new branch model”ATM Marketplace white paper sponsored by Aurigahttp://www.atmmarketplace.com/whitepapers/a-successful-omnichannel-banking-for-a-new-branch-model/

“EMV Migration Guide,” by Robin Arnfield, Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/8593/17226

“EMV, PCI and the ATM Industry,” by Robin Arnfield, Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/8593/17477

“Getting More Money Out of the ATM,” by Robin Arnfield, Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/8593/17869

“Mobile Banking and Payments Security,” by Robin Arnfield, Networld Media Grouphttp://www.networldmediagroup.com/inc/sdetail/8593/18751


http://www.mobilepaymentstoday.com/whitepapers/mobile-wallets-moving-beyond-pilots/

http://www.mobilepaymentstoday.com/whitepapers/mobile-wallets-moving-beyond-pilots/

http://www.networldmediagroup.com/inc/sdetail/8593/16674

http://www.atmmarketplace.com/whitepapers/four-benefits-of-using-a-multichannel-architecture-to-manage-atm-networks/

http://www.atmmarketplace.com/whitepapers/four-benefits-of-using-a-multichannel-architecture-to-manage-atm-networks/

http://www.atmmarketplace.com/companies/showcases/auriga-spa/

http://www.atmmarketplace.com/companies/showcases/auriga-spa/

http://www.atmmarketplace.com/whitepapers/wws-atm-a-world-class-atm-management-solution/

http://www.atmmarketplace.com/whitepapers/wws-atm-a-world-class-atm-management-solution/

http://www.atmmarketplace.com/whitepapers/wws-proactive-monitoring-manager/

http://www.atmmarketplace.com/whitepapers/wws-proactive-monitoring-manager/

http://www.rbrlondon.com/reports/global

http://www.ATMIA.com

http://www.atmmarketplace.com/whitepapers/atm-future-trends-2015/

http://www.atmmarketplace.com/whitepapers/atm-future-trends-2015/



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