ATM Monitoring Technology for Omnichannel Banking Systems DEVELOPED and PUBLISHED BY

GUIDE

ATM Monitoring Technology for Omnichannel Banking Systems DEVELOPED AND PUBLISHED BY:

By Robin Arnfield, contributing writer, ATMmarketplace.com

SPONSORED BY: CONTENTS

Page 4 Introduction

Page 10 Chapter 1 | ATM monitoring and management survey results

Page 24 Chapter 2 | Interviews with financial institutions

Page 35 Chapter 3 | Recommendations from consultants and vendors

Page 45 References

Published by Networld Media Group © 2015 Networld Media Group Written by Robin Arnfield, contributing writer, ATMMarketplace.com Tom Harper, president and CEO Kathy Doyle, executive vice president and publisher Suzanne Cluckey, editor Brittany Warren, custom content editor

Auriga (Italy) Co-op Financial Services (U.S.)

Alfa-Bank (Russia) First Data (U.S.)

Andrew Martin, Retail Bank Consulting Group (U.K.) First National Bank (South Africa)

ATMIA Inetco Systems (Canada)

Banca Marche (Italy) Kiwibank (New Zealand)

Banco Sabadell (Spain) Mercator Advisory Group (U.S.)

BBVA Compass (U.S.) National Bank of Canada

BECU (U.S.) PNC Bank (U.S.)

BNL Gruppo BNP Paribas (Italy) Raiffeisen Bank International (Austria)

Francesco Burelli, partner, Danny Rogge, Rogge Consult (Belgium) Innovalue Management Advisors (U.K.) Servizi Bancari Associati (Italy) CaixaBank (Spain) Jim Tomaney, managing director, Q-ATM (U.K.) CartaSi (Italy) 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 Robin Arnfield MobilePaymentsToday.com monitoring and management platform, as well as how they might integrate ATM monitoring technology into an om- Robin Arnfield has been a technology journalist since nichannel environment. 1983. His work has been published in ATM Marketplace, Mobile Payments Today, ATM & Debit News, ISO & Agent, ATM Marketplace thanks Auriga for allowing us to bring CardLine, Bank Technology News, Cards International this publication to you at no cost. We also thank all the and Electronic Payments International. He has covered participants in our survey. the United Kingdom, European, North American and Latin American payments markets.

ATM monitoring and management survey

From June to July 2015, ATM Marketplace conducted an online, digital signage, etc.). The remaining respondents international survey of FIs on the topic of ATM monitor- (76 percent) manage their channels as siloes. ing technologies for use in conjunction with omnichannel banking services platforms. While one-third (34 percent) of respondents plan to migrate to a single omnichannel management system, 44 The survey received responses from 106 ATM-operating percent are unsure about their plans. The remainder (23 FIs from around the world. percent) don’t plan to migrate to a single omnichannel Respondents were asked, “How many ATMs do you have management system. in your fleet?” More than one-quarter (27 percent) of respondents have a A quarter (26 percent) of respondents have more than single omnichannel monitoring system that enables them 2,000 ATMs, while 25 percent have fewer than 100 ATMs. to control all their existing channels.

Just over one-fifth (21 percent) have 501-2,000 ATMs, More than one-quarter (28 percent) of respondents plan to while 29 percent have 101-500 ATMs. 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 Siloed approach migrate to a single omnichannel monitoring system. The survey found that most respondents have a siloed approach to channel management and monitoring. Suppliers Nearly one-quarter of respondents (24 percent) have a The survey found that three-quarters (74 percent) of single omnichannel management system that manages all respondents use an external ATM monitoring system sup- their distribution channels (ATMs/kiosks, branches, mobile, plier, as opposed to in-house developed solutions.

Nearly half (44 percent) of respondents answered yes Just over one-quarter (27 percent) said their monitoring when asked whether they would use an external ATM solution includes predictive maintenance features, while monitoring solution supplier. 51 percent answered no, and the remainder (22 percent) said they didn’t know. Two-thirds (64 percent) of respondents said they wouldn’t be willing to develop their own ATM monitoring solution. Nearly half (48 percent) said their monitoring solution includes dashboards with a “bird’s eye” view ATM map Nearly two-thirds (60 percent) of respondents use an ATM showing availability across their fleet, while 37 percent monitoring solution supplied by their ATM software vendor, answered no, and the remainder (15 percent) said they while nearly half (42 percent) use an ATM monitoring solution didn’t know. from a third-party supplier that is also a hardware provider. Only 11 percent of respondents said their monitoring Just over one-third (36 percent) of respondents use a solution offers autonomous configuration of new key monitoring solution from a vendor-independent ATM soft- performance indicators (KPIs) without input from the ware supplier such as Auriga that provides ATM transac- supplier, while 57 percent said no, and 33 percent said tional software but not ATM hardware. they didn’t know. One-quarter (25 percent) of respondents answered yes when asked whether they would be willing to use a moni- Improvements toring tool from a vendor-independent ATM software supplier that provides ATM transactional software but doesn’t Half (50 percent) of respondents said their monitoring provide ATM hardware. However, 69 percent said they solution had made noticeable improvements to their ATM were neutral, and 6 percent said no. availability levels compared to before they deployed the solution. The remainder said they didn’t know what their Just over half (51 percent) of respondents use the same improved ATM service availability was. company to provide their monitoring software and to operate and manage their ATM monitoring services. Nearly one-quarter (24 percent) of respondents said their improved ATM service availability had reduced their operational costs by up to 25 percent, while 14 percent said their Monitoring features operational costs had been reduced by 26-50 percent.

More than three-quarters (76 percent) of respondents No respondents had seen a reduction of more than 50 said their monitoring solution includes terminal monitoring percent, and 62 percent said they didn’t know what the features that collect information about the terminal’s status reduction was. changes and indicate any potential or real problems. Just over one-third (21 percent) of respondents said they In addition, 71 percent said their monitoring solution offers have been able to reduce field engineers’ on-site activi- monitoring of technical problems connected with ATM ties by up to 25 percent due to their improved ATM service hardware components as well as transactional monitoring. availability, while 17 percent said they had been able to Only 31 percent of respondents said their monitoring reduce field engineers’ visits by 26-50 percent. No respon- solution includes proactive monitoring with automatic self- dents had seen a reduction of more than 50 percent, while healing capabilities, automated incident processing and 62 percent said they didn’t know what the reduction was. resolution flow. More than half (51 percent) answered no More than half (57 percent) of respondents said they are to this question, and the remainder (18 percent) said they satisfied with their current monitoring solution. Asked didn’t know. whether they plan to change their monitoring solution, 61 percent said yes.

KPIs nology that gives you advance warning of problems means you can take care of issues ahead of peak time. For Asked to identify the essential KPIs that need to be pro- example, if you detect the receipt printer is about to fail, vided by a monitoring solution, respondents gave answers and you know most people get paid on Friday and then such as: withdraw their pay packet at an ATM, you can do the repair • ATM down; by Wednesday. This will ensure an optimum service level • Length of time ATM is down; for your customers.” • Failed transaction; Running ATM monitoring means that ATM deployers can • ATM uptime; save on field engineer costs, as they don’t need to send field engineers out on routine maintenance inspections to • Service level agreements (SLAs) monitoring; check every ATM, O’Brien says. • Customer availability of ATM by function or critical component, communications failure, out of cash, part failure, “A best practice in ATM monitoring is to use software that mean time to repair, reports by region, district, city, etc.; puts a virtual agent on the ATM at the XFS (extensions for financial services) level to monitor the machine,” Q-ATM’s • Ability to view entire fleet at once, automated ticket Tomaney said. “The virtual agent can take care of prob- opening and predictive maintenance would be nice. lems locally and send reports to the help desk.”

In-depth interviews In a Payments Journal blog post, O’Brien wrote: “Recent Mercator Advisory Group research on various banking For this report, ATM Marketplace conducted in-depth in- channels systems, including ATMs, branch, and mobile terviews with innovative FIs in Europe and North America, banking systems, shows an increased interest — and including U.S.-based BECU and BBVA Compass, Spain’s need — for systems monitoring and management sys- Banco Sabadell and CaixaBank, Italy’s BNL Gruppo BNP tems. These capabilities go beyond traditional condition Paribas, Austria’s Raiffeisen Bank International and Swit- monitoring systems, which often focus on system health zerland’s UBS. and potential downtime, and increasingly include applica- Interviews also were conducted with leading ATM man- tion performance monitoring and threat monitoring and agement and monitoring consultants including Francesco management solutions. And while fraudsters will continue Burelli, a partner at Innovalue Management Advisors; Ed to find ways to compromise banking systems, having such O’Brien, director of Mercator Advisory Group’s Banking pro-active, defensive solutions can help to reduce the Channels Advisory Service; Danny Rogge, owner of Rogge number and severity of attacks.” Consult; and Jim Tomaney, managing director of Q-ATM. With FIs increasingly deploying advanced, multifunction None of the FIs interviewed in person by ATM Marketplace ATMs as part of their branch transformation initiatives, said they had integrated omnichannel management and real-time and highly precise monitoring and management of monitoring systems, and many identified necessary orga- these sophisticated machines is important if FIs are to avoid nizational changes as a key barrier to moving from siloed customer dissatisfaction due to downtime or malfunctions. monitoring and management. “When moving teller operations to self-service and assisted-service devices, complexity and cost are added Best practice to the self-service channel,” said Carmine Evangelista, chief technology officer at Auriga. “The more complex the “It’s almost foolhardy not to have ATM systems monitor- channel becomes and the greater the variety of transac- ing,” Mercator’s O’Brien said. “It’s like preventive mainte- tions performed, the bigger the challenge is for the moni- nance for your home or car. Using ATM monitoring tech- toring solution.”

“In the complex environment (of multifunction ATMs), where ATMs are more than cash dispensers, it’s essential “It’s almost foolhardy to ensure not just cash and machine availability but the availability of a complete range of services that custom- not to have ATM systems ers require at all times in strict security conditions,” a monitoring. It’s like preventive spokesperson for CaixaBank said. “To achieve this goal, operations management isn’t enough. You need to study maintenance for your home or at all times the behavior of each ATM and its users in order car. … [ATM monitoring] will to predict and detect any changes needing to be made ensure an optimum service in order to continue offering the best service. Informa- tion received from other channels is essential in order to level for your customers.” maintain online contact with the ATM network in order to — Ed O’Brien, director of Mercator Advisory Group’s Banking exceed client expectations. Channels Advisory Service

Omnichannel “Best Practice for Developing and Deploying the ATM in a In an omnichannel banking environment, customers inter- Multi-Channel Retail Banking Delivery System.” act with FIs via the channel of their choice — at branches and call centers or via self-service channels such as O’Brien says it’s especially the case with smaller FIs that ATMs, the Web and mobile devices. their various channels may be siloed.

“True omnichannel includes not just integration but also “Consumers expect banks to provide a consistently great collaboration between the different channels, so banks can experience,” said Ron Hemming, senior vice president, IT have a 360-degree real-time view of customers’ needs and director of ATM operations/network/enterprise monitoring, behaviors, at U.S.-based BBVA Compass. “Consumers will want their bank to allow them to complete transactions where and and customers can start a transaction on one channel and when they want, which means providing a strong brand complete it on another and obtain real-time information,” across all technologies. The barriers to an omnichannel Mercator’s O’Brien said. experience are more likely to appear within the bank itself A key driver for investing in omnichannel integration is to than with consumers. Getting the bank to focus on a holis- improve the customer experience. “C-level bank execu- tic view of the customer experience can be difficult.” tives realize the importance of offering good customer “Having team members change their view of building their experience if their bank is to remain a primary FI for their widget and instead look at the entire experience from customers,” O’Brien said. “Banks are moving to omnichan- branch, ATM, online banking to mobile apps is the key to nel so they can compete more effectively against the direct being successful,” Hemming said. “Consumers change the banks and the new innovative payment companies as well way they bank perhaps several times a day using smart- as against other incumbent banks.” phones, tablets, online banking websites and ATMs, so “A key barrier to omnichannel integration is legacy sys- these all need to be consistent.” tems,” said Lamberto Spadari, systems manager at Italy’s Banca Marche. ATM growth forecast Management constraints caused by organizational siloes U.K.-based consultancy RBR predicts the global ATM also represent a key barrier to omnichannel integration, installed base will increase to almost four million ATMs according to the ATM Industry Association (ATMIA) report by 2019.

Growth patterns will vary widely over the forecast period, to the shared Banco24Horas network as an alternative to RBR’s “Global ATM Market and Forecasts to 2019” report increased off-site deployment. Elsewhere in Latin America, says. Several Asia-Pacific and Middle East and Africa four of the region’s seven major markets grew by 5 percent or (MEA) countries will see double-digit annual growth rates, more in 2013, with cost-cutting and strong demand from new while a small number of markets — primarily in Western customers among the principal drivers of new installations. Europe — will contract. It’s a different story in more established markets, with The Nigerian market will almost triple in size between more than half of the 20 major markets in North America 2013 and 2019, as banks ramp up levels of off-site deploy- and Western Europe contracting in 2013. The only no- ment to compete for a share of the increasing transaction table exception to sluggish growth in these two regions volumes. Other major MEA markets will experience strong is Turkey, the youngest of Western Europe’s major ATM growth as well, driven by both customer demand and gov- markets; much of Turkey’s growth came from state-owned ernment requirements. banks, as these began to replicate the private banks’ recent expansion. 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 Off-site ATMs low-cost ATMs will help boost CEE installations, while Off-site ATMs make up almost half of the global installed Latin American deployers will expand their fleets to meet base, although their share declined slightly in 2013, RBR demand from newly banked customers. says. In some countries, high off-site shares can be at- RBR says deployers in the majority of markets remain tributed to the presence of independent ATM deployers cautiously optimistic about the potential for further growth, (IADs); this is the case in the U.S. and the U.K., which with possible inhibitors — particularly cost-related factors have well-developed IAD sectors. Overall, IAD ATMs make — continuing to weigh on ATM strategies. Even in the few up 16 percent of the global installed base, RBR says. countries where a decline in numbers is expected, this is Globally, the lobby was the only location type to see its likely to occur slowly and possibly even reverse in the lat- share rise in 2013, RBR says. One reason for this is the ter years of the forecast period, RBR says. increasing implementation of automated deposit technology, as lobby ATMs offer the convenience of extended- Regional breakdown hours availability, with transactions in a secure branch- like environment. The 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 ATM share by location, end of 2013 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

Improving existing operations According 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.

© 2015 Networld Media Group | Sponsored by Auriga 9 CHAPTER 1 ATM monitoring and management survey results 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.

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

3% Australia Canada While 29 percent of respondents have 101-500 ATMs, 7% 25 percent have 1-100 ATMs, 21 percent have 501-2,000 Western Europe ATMs and 26 percent have more than 2,000 ATMs. United States 7% 28% Latin America/ 9% South America

Eastern Europe Asia 11% 20% Middle East/ Africa More 16% than 2,000 1-100 26% 25%

501-2,000 101-500 The U.S., with 28 percent, accounted for the largest share 21% of respondents answering this question. 29%

One-fifth (20 percent) of respondents have their headquarters 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.

3. Do you have a single omnichannel management system to manage all your distribution channels 5. Do you have a single omnichannel monitoring (ATMs/kiosks, branches, mobile, PC Internet, system so you can control all your existing digital signage, etc.), or do you manage your channels and ensure high service availability channels as silos? for all your customers’ contact points?

24% Yes 76% 27%

Omnichannel Silo management management system

No 73% Nearly one-quarter (24 percent) said they have a single omnichannel management system, while 76 percent have siloed channel management systems.

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

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

Only 34 percent of respondents plan to migrate to a 6. Do you plan to migrate to a single omnichannel single omnichannel management system, while 23 per- monitoring system? cent have no plans to do so. Nearly half (44 percent) said they aren’t sure. 53%

28% Yes 20% 34%

Not sure 44% Just over one-quarter (28 percent) of respondents said No they plan to migrate to a single omnichannel monitoring 23% system. However, 20 percent said they don’t plan to do so, and 53 percent said they don’t know.

7. From which of the following platforms do you access your monitoring system? Just over half (56 percent) of respondents use a desktop operational management console to access their monitor- Web-based operational management console accessible ing system, while 44 percent use a Web-based operation- from any device used to connect to the internet 44% al management console accessible from any device used to connect to the Internet. Desktop operational management console 56% None of the respondents use a native application for smartphones and/or tablets enabling staff to access their 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? No 6%

No 20% No No 27% 30% Yes Yes Yes 80% Yes 94% 73% 70%

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.

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- Yes 57% tion said deploying meters and greeters in branches with a monitoring app on their smartphones/tablets could help No 13% reduce out-of-service time and costs. Nearly one-third (30 I don't know 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 12. Do you use an ATM monitoring solution from your ATM monitoring solution with your an external supplier, or do you use your own existing architecture? monitoring solution that was developed and managed in-house? Strong integration with your existing central system and ATM software 46% In-house monitoring solution Light integration with your existing central system and ATM software 54% 26%

External supplier 74%

More than half (54 percent) said they required light integration with their existing central system and ATM Nearly three-quarters (74 percent) of respondents said they software, while 46 percent required strong integration. use an external ATM monitoring solution supplier, and the remainder (26 percent) use an in-house monitoring solution.

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

11. How important a criterion for you is the cost of integrating your ATM monitoring solution into your existing architecture? 44% 56%

Low 9% Yes No Of the respondents to this question, 44 percent said they High would use an ATM monitoring system from an external 46% supplier, and 56 percent said they would not. Medium 46% 14. Do you use an ATM monitoring solution supplied by your ATM software vendor, e.g., NCR ATM monitoring software and NCR ATM software?

40% 60% 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 Yes No it is of medium importance. Nine percent said the cost is of low importance. 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.

15. Do you use an ATM monitoring solution from 17. Do you use a monitoring solution from a vendor- a third-party supplier that is also a hardware independent ATM software supplier such as provider, e.g., NCR ATM monitoring software Auriga that provides ATM transactional software with Wincor Nixdorf ATM software? but doesn’t provide ATM hardware?

64% 42% 58% 36%

Yes No Yes No

While 42 percent of respondents to this question said Just over one-third (36 percent) of respondents said they they use an ATM monitoring solution from a third-party use a monitoring solution from a vendor-independent supplier that is also a hardware provider, 58 percent said ATM software supplier that provides ATM transactional they do not. software but doesn’t provide ATM hardware. However, 64 percent answered no to this question.

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

31% Yes 25%

Neutral 52% No No Neutral 6% 17% 69%

Just under one-third (31 percent) of respondents said they One-quarter (25 percent) of respondents said they would be would be willing to use a third-party ATM monitoring solution willing to use a monitoring tool from a vendor-independent supplier that is also a hardware provider, but 17 percent said ATM software supplier that provides ATM transactional they do not, and 52 percent said they were neutral. software but doesn’t provide ATM hardware. However, 69 percent said they were neutral, and 6 percent said no.

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

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

Yes No

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

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

Yes No Neutral

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 36% their own monitoring solution, while the 64% remainder (36 percent) said they would.

Yes 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 Yes 52% they use the same company to provide their monitoring software and to operate and man- No 49% age their ATM monitoring services. However, 49 percent answered no to this question.

23. Would you be willing to use the same company to 25. Is your monitoring solution management provide your monitoring software and to operate service multi-time-zone? and manage your ATM monitoring services? Yes 42% 56% No 36% 44% I don't know 22% 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. Yes No 26. Does your monitoring solution include terminal monitoring features that collect information about the terminal’s status changes and More than half (56 percent) of respondents said they indicate any potential or real problems? 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. 76%

18% 6%

24. Is your monitoring solution multibank, i.e., Yes No I don't know able to monitor different ATM networks owned by different bank subsidiaries within Three-quarters (76 percent) of respondents said their the same group? monitoring solution includes terminal monitoring features that collect information about the terminal’s status changes and indicate any potential or real problems. I don't know Only 18 percent answered no to the question, and six 16% percent said they don’t know. Yes 44% 27. Does your monitoring solution offer monitoring of technical problems connected with ATM hardware components as well as transactional monitoring? No 40% 18% 71%

Yes No I don’t know

While 44 percent of respondents said their monitoring Nearly three-quarters (71 percent) of respondents said solution is multibank, 40 percent answered no, and 16 their monitoring solution offers monitoring of technical prob- percent said they didn’t know. 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.

28. Does your solution include proactive monitoring 30. Does your solution include remote with automatic self-healing capabilities, automated management operations capabilities enabling incident processing and resolution flow? a remote operator to send commands from the central system to the terminal in order to avoid engineers’ field visits? I don't know 18% Yes 31% 66%

24% 11%

No 51% Yes No I don't know

Two-thirds (66 percent) of respondents said their solution includes remote management operations capabilities that allow a remote operator to send commands Half (51 percent) of respondents to this question said their from the central system to the ATM. One-quarter (24 solution doesn’t include proactive monitoring with automat- percent) answered no to the question, and 11 percent ic self-healing capabilities, automated incident process- said they didn’t know. ing and resolution flow. Just under one-third (31 percent) answered yes, and 18 percent said they didn’t know.

31. Does your solution include an incident 29. Does your solution include predictive management ticketing system using all the maintenance capabilities? messages and data from the terminals to automatically trigger a process in compliance with a predefined tracking and alerting workflow?

I don't know Yes 22% 27% 9% 24% No 67% 51%

Yes No I don’t know

More than half (51 percent) of respondents said their solu- Two-thirds (67 percent) of respondents said their solution tion doesn’t include predictive maintenance capabilities, includes an incident management ticketing system, while 24 while 27 percent answered yes to the question, and 22 percent said it does not, and 9 percent said they didn’t know. percent said they didn’t know.

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

Yes 31% Less than one-third (31 percent) of respondents said they have to integrate their No 54% monitoring solution with an external ticketing system, while 54 percent said they did not I don't know 15% know, and 15 percent said they didn’t know.

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

Nearly half (46 percent) of respondents said 30% their monitoring solution is able to connect 46% to external hardware vendors’ ticketing sys- 24% tems, while 24 percent said it was not able to do so, and 30 percent said they didn’t know. Yes No I don’t know

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

More than one-third (37 percent) of respon- I don't know Yes dents said their monitoring solution offers real- 30% 37% time engineer tracking and supervision, while 33 percent said it does not, and 30 percent said No they didn’t know. 33%

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

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

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.?

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

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

Respondents gave answers such as: • Service level agreements (SLAs) monitoring;

• ATM down; • Customer availability of ATM by function or critical component, communications failure, out of cash, • Downtime, return to service rates; part failure, mean time to repair, reports by region, district, city, etc.; • Availability, time to arrive, time to fix; • Transaction per day; average transaction time; • Length of time ATM is down; • Reliable error messaging, 24x7 availability of • Failed transaction; monitoring, link into accurate reporting; • ATM uptime; • Ability to view entire fleet at once, automated ticket • Real-time cash, communications and fault monitoring; opening and predictive maintenance would be nice.

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

Only 11 percent of respondents said their 11% monitoring solution offers autonomous 33% configuration of new KPIs without supplier input. More than half (57 percent) 57% said it does not, and 33 percent said they didn’t know. Yes No I don’t know

39. Does your solution include autonomous and on- 41. Does your solution offer complete hardware demand electronic journal collection, storage and software terminal inventory capabilities and consulting? that collect and report on any configured management information available locally on the ATM? I don't know 17% Yes Yes 35% 48% No 37%

No I don't know 28% 35%

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.

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

40. Would you be willing to use a single provider Neutral for terminal monitoring and for electronic 29% journal collection, storage and consulting?

Yes Yes 59% 25% No Neutral 12% No 63% 12%

One-quarter (25 percent) of respondents said they would be willing to use a single provider for terminal monitoring More than half (59 percent) of respondents said they would and for electronic journal collection, storage and consult- be willing to have a single provider for monitoring and for ing. Two-thirds (63 percent) were neutral, and 12 percent terminal inventory capabilities, while 12 percent said they said they would not be willing to use a single provider. would not, and 29 percent said they were neutral.

43. Does your monitoring solution offer software 45. Would you be willing to have a single provider distribution and release management for monitoring, software distribution and technology that links your central system release management? and terminals in order to deploy files on the terminals, retrieve files from the terminals and distribute packages to the terminals? 46% 20% 31% 52% 23% 28%

Yes No I don’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 More than half (52 percent) of respondents said their said they were neutral. monitoring solution offers software distribution and release management technology that links their central system and terminals. One-third (20 percent) said they didn’t know, and 28 percent said it does not offer such technology. 46. Do you use a terminal handling solution and monitoring solution that are both provided by the same supplier? 44. Is your software distribution and release management technology a separate product from your monitoring solution?

I don't know I don't know 17% No 8% 8% Yes No 52% 31%

Yes 85%

The majority (85 percent) of respondents said their soft- Just over half (52 percent) of respondents use a terminal ware distribution and release management technology handling solution and monitoring solution that are both are a separate product from their monitoring solution, provided by the same supplier, while 31 percent said they while 8 percent said it was not separate, and 8 percent do not, and 17 percent said they didn’t know. said they didn’t know.

47. Do you use a monitoring solution and a fraud 49. Are you satisfied with your current management solution that are both provided by monitoring solution? the same supplier?

I don't know 12% Yes 43% 26% 57%

Yes No

No 62% More than half (57 percent) of respondents said they were satisfied with their current monitoring solution, while 43 percent answered no.

Two-thirds (62 percent) of respondents don’t use a monitoring 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. 50. Are you planning to change it?

48. Would you say your monitoring solution has noticeably improved your ATM service availability levels compared with before you No deployed the solution? 39% Yes 61%

I don't know Yes 50% 50%

Half (50 percent) of respondents said that their monitoring solution had improved their ATM service availability Nearly two-thirds (61 percent) of respondents are planning levels noticeably compared with before they deployed to change their ATM monitoring solution, while 39 percent the solution. The remainder said they didn’t know what don’t plan to do so. their improved ATM service availability was.

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

Up to 25% 24% Up to 25% 21% I don't know 26-50% 62% I don't know 26-50% 14% 62% 17%

Just over one-third (21 percent) of respondents said Nearly one-quarter (24 percent) of respondents said their they had been able to reduce field engineers’ on-site improved ATM availability had reduced their operational activities by up to 25 percent due to their improved costs by up to 25 percent, while 14 percent said 26-50 ATM service availability, while 17 percent said by 26-50 percent, no one said above 50 percent, and 62 percent percent, no one said above 50 percent, and 62 percent said they didn’t know. said they didn’t know.

For this report, ATM Marketplace conducted in-depth interviews 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. “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 Alfa Bank engineers,” Daryoshin said. “For the same reason, I would In 2014, Moscow-based Alfa Bank’s ATM network included also be willing to use a single provider for monitoring, 3,100 ATMs that it owned and 12,000 ATMs owned by its software distribution and release management. Our soft- partner banks. ware distribution and release management technology is a separate product from our monitoring solution.” “We have siloed channel management systems,” said Maxim Daryoshin, head of Alfa Bank’s self-service sys- Daryoshin says he is satisfied with Alfa Bank’s current tems development department, retail business. “We don’t monitoring solution because of its convenience, reliability plan to migrate to a single omnichannel management and stability. The improvement the bank has seen in ATM system, as we don’t have a single point of strategic view availability has led to field engineers’ on-site visits being for all channels and have one independent point of view reduced by up to 25 percent, he says. per channel.” “The essential KPIs that need to be provided by a monitor- Daryoshin says Alfa Bank doesn’t have a single omnichan- ing solution are uptime, customer availability and cash-in- nel monitoring system, as the bank sees no need for a transit (CIT) operations effectiveness,” Daryoshin said. single system. “Moving to omnichannel management and monitoring would require Alfa Bank to make organizational Alfa Bank’s monitoring solution and fraud management changes, and this is a cornerstone of the problem,” he said. solutions are both provided by the same supplier, Daryo- shin adds. Alfa Bank uses an externally supplied ATM monitoring system that staff access from a Web-based operational management console, Daryoshin says. Banca Marche Banca Marche operates approximately 300 branches in The bank uses different companies to provide its monitor- Central Italy. “We have silo-based channel management ing software and to operate and manage its ATM monitor- systems and have no plans to migrate to an omnichannel ing services. Its monitoring solution offers autonomous management system,” said Lamberto Spadari, the bank’s configuration of new KPIs without input from the supplier.

systems manager. “The different platforms are based on like to be able to access our monitoring system through specific functional choices, with integration difficulties.” native applications for smartphones and for tablets,” the spokesperson said. Banca Marche also has siloed channel monitoring systems, and currently has no plans to migrate to a single “We think that deploying meeters and greeters within bank monitoring system due to the “difficulties in undertaking branches who have a monitoring app on their smart- innovative projects,” Spadari said. “This would also require phones/tablets would help to align staff to the bank’s us to make organizational changes.” goals and help reduce out-of-service time and costs,” the spokesperson said. Currently, Banca Marche staff use desktop operational management browsers to access their monitoring system, Banco Sabadell uses an ATM monitoring solution from an but Spadari says he would like to use Web-based opera- external supplier. “We think it’s better to have a market- tional management consoles. supplied tool because the functionality is standard,” the spokesperson said. The bank doesn’t think it is necessary Banca Marche uses the same company to provide its ATM to have a single provider for monitoring, software distribu- monitoring software and to manage its ATM monitoring tion and release management, the spokesperson says. services, Spadari says. Its monitoring solution doesn’t offer autonomous configuration of new KPIs without input According to the spokesperson, the essential KPIs that from the supplier. need to be provided by a monitoring solution are:

“I’m satisfied with our current monitoring solution, as the • Percentage of time available over total time; quality of the service is in line with expectations,” Spadari • Average response time by transaction; says. “We have no plans to change it.” • Number of unavailable ATMs.

Spadari says his requirements for effective ATM man- Banco Sabadell isn’t satisfied with its current monitoring agement and monitoring are “speed in the analysis and solution, as it doesn’t allow the bank to customize KPIs resolution of problems.” that it needs, the spokesperson says.

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

Currently, Banco Sabadell has siloed management solutions 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 systems,” 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 desktop operational management consoles as well as Web- based operational management consoles. “We would also

BBVA Compass in order to be successful. Communication is a simple goal and yet is often missed. Make sure to communicate with Birmingham, Alabama-based BBVA Compass is the U.S. the bricks-and-mortar locations. The staff at these loca- subsidiary of Spain’s BBVA. tions are often your first line of defense for the customer Ron Hemming, BBVA Compass’ senior vice president of who has an issue using an ATM.” IT director ATM operations/network/enterprise monitoring, The need to have a monitoring system in place that will says important KPIs are: work across all machine types within an ATM fleet is es- • Repeat failures (which ATMs are having repeat perfor- sential, Hemming says. “The ability for your monitoring mance issues within a certain timeframe); staff to be able to trust the reliability of the monitoring tool • Average first-time resolve percentage; allows the staff to quickly and confidently troubleshoot • Average availability time; issues and resolve quickly,” he said. “The hardest part of ATM monitoring is separating fact from customer percep- • Maintenance vendor response time to resolve an issue; tion. When a customer has a bad experience at an ATM, • Maintenance vendor average ATM failure resolve time; they often think the ATM is down when that isn’t the case. • ATM parts supply stock availability. Being successful at understanding what the customer is truly feeling and experiencing go hand in hand. The cus- “Consumers expect banks to provide a consistently great tomer doesn’t care that the ATM can deposit money if they experience,” Hemming said. “Consumers will want their are trying to deposit a check and the deposit function isn’t bank to allow them to complete transactions where and available right now. Having the proper staff and tools to when they want, which means providing a strong brand do in-depth trend analysis along with the ATM monitoring across all technologies. The barriers to an omnichannel tools is a must.” 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 BECU team members change their view of building their widget Seattle-based BECU, the fourth-largest U.S. credit union, and instead look at the entire experience from branch, ATM, operates 211 ATMs and has 43 branches. “We don’t drive online banking to mobile apps is the key to being success- our own ATMs, but we do all the monitoring, dispatching ful. Consumers change the way they bank perhaps several and reporting in-house,” said Shirley Taylor, ATM channel times a day using smartphones, tablets, online banking manager at BECU. “So we have a hybrid approach. websites and ATMs, so these all need to be consistent.” For several years, BECU has used NCR Aptra Vision (it Hemming recommends that FIs ensure “their staff are ded- previously used NCR Gasper Vision), accessing the sys- icated to the customer experience vision. Secondly, have tem via desktop and laptop consoles. “NCR Aptra Vision a work environment that truly supports a unified culture, gives us insight into our ATM availability,” Taylor said. “Of and that attempts to knock down the siloes,” he said. “The our 43 branches, only two have a traditional teller line, so omnichannel world comprises many different components ATM availability is key for us. In the other branches, the and requires all hands on deck to support customers and ATMs act as tellers.” their ability to do their business with the bank. A network team that has the same customer experience vision as the Taylor says BECU has no plans to deploy interactive teller customer-facing channels is imperative. The importance machines with video links to remote staff. She adds that of a robust and reliable network is often overlooked. Make BECU’s ATMs are 100 percent image-enabled so custom- certain to interact with all lines of business that impact an ers can deposit checks. omnichannel environment; everyone needs to be engaged

“We don’t have plans to migrate to omnichannel monitoring, as we think technology and application monitoring must “Our ATMs act as tellers be ‘channel specific,’” Iannucci said. “Organizational and for our organization, so channel structures are the main barriers to moving to an omnichannel system.” availability is critical.” BNL uses a desktop operational management console to — Shirley Taylor, ATM channel manager at BECU access its monitoring system, but also would like to use Web-based operational management consoles and native applications for tablets. “Our in-branch staff don’t have monitoring duties,” Iannucci said. “But it could be useful to “Across our entire ATM fleet including off-premises ATMs, deploy meeters and greeters within bank branches who we average 7,200 monthly transactions,” Taylor said. “At have a monitoring app on their smartphones or tablets to our financial centers, we average 12,000 to 15,000 ATM help reduce out-of-service time and costs.” transactions a month. These are just traditional standard BNL uses an ATM monitoring solution from an external sup- ATM transactions. Not all our branches hit the 12,000 to plier, and uses the same company for its monitoring soft- 15,000 mark, but a good majority do, and a good number ware as well as for operation and management of its ATM of our off-premise ATMs are also hitting those numbers.” monitoring services. “We have an outsourced full-service BECU uses Inetco Systems’ Inetco Insight software to approach,” Iannucci said. “Developing our own solutions isn’t integrate data into NCR Aptra Vision, as well as Inetco our business, so we look for third parties committed to provid- Analytics customer analytics software. “From an overall ing results. In our ATM environment, the supplier attaches channel-management perspective, it’s critical to pick up on the monitoring system to our ‘application ports,’ and we don’t customer trends as part of ATM monitoring,” says Taylor. influence the choice of the specific monitoring product.”

Taylor says BECU’s ATM division is somewhat siloed. “We BNL’s monitoring solution offers autonomous configuration monitor our ATMs and do escalations from our ATM opera- of new KPIs without input from the supplier. “The essential tions group, not from our IT group,” she said. “We looked KPIs that need to be provided by a monitoring solution are at omnichannel monitoring, but don’t think that moving uptime, cash usage, downtime per type, vendor and ma- to omnichannel monitoring would buy us anything at this chine,” Iannucci said. point in time.” “I would be willing to use a single provider for terminal “We don’t put monitoring software on our branch staff’s tab- monitoring and for electronic journal collection, storage and lets,” Taylor said. “But, if there is a problem at an in-branch consulting,” Iannucci said. “But I wouldn’t be willing to have ATM or an off-premises ATM, we send a system-generated a single provider for monitoring, software distribution and email to branch staff to alert them before they get com- release management. Software distribution is managed by plaints from customers. If you have downtime too often at an internal department and isn’t outsourced.” your ATMs, you will lose the customer relationship, which Iannucci says BNL’s monitoring solution has had a very posi- means losing long-term revenue from that customer.” tive effect on ATM service availability since its deployment. . However, BNL isn’t satisfied with its current monitoring solu- BNL Gruppo BNP Paribas tion, as it isn’t XFS-based, and plans to change the solution. Mauro Iannucci, network innovation manager at BNL, the Ital- The improved ATM availability BNL has experienced from ian subsidiary of France’s BNP Paribas, says the bank has a its monitoring solution has reduced its operational costs by siloed approach to channel management and monitoring. up to 25 percent, Iannucci says. The bank has been able to

reduce field engineers’ on-site activities due to its improved number of existing infrastructures is high. Overcoming this ATM service availability by 26-50 percent. situation needs deep systems re-engineering to face future technology changes.”

CaixaBank CaixaBank accesses its monitoring system from desktop Spain’s CaixaBank has 9,724 ATMs, including more operational management consoles, but also would like to than 1,000 Punt Groc (“yellow point”) advanced multifunc- use Web-based operational management consoles. tion ATMs. “We think deploying meeters and greeters within branches “In a complex environment like CaixaBank’s, where ATMs who have a monitoring app on their smartphones/tablets is are more than cash dispensers, it’s essential to ensure the a good idea,” the spokesperson said. “Branches are the first availability of the range of services that customers require level of service, so ensuring that [branch staff] can predict at all times,” a CaixaBank spokesperson said. “To achieve and solve as many situations as possible helps our bank this, performance management isn’t enough. You need to improve customer service and reduce costs.” study at all times the behavior of each ATM and its users CaixaBank uses an in-house-developed ATM monitoring to predict and detect any changes needing to be made in solution which the spokesperson says fulfills all the bank’s order to continue offering the best service.” requirements.

CaixaBank has silo-based management systems and moni- “We use the same company to monitor and operate our toring systems. “Moving to omnichannel management and ATMs,” the spokesperson said. “This ensures faster service monitoring would require us to make organizational chang- and less downtime.” es, because of siloed business units,” the spokesperson said. “Since each channel is managed by its own team, the CaixaBank’s ATM monitoring services supplier also provides 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 release 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.

CartaSi Milan-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 percent use other components too.” es who have a monitoring app on their smartphones/tablets Gotti says CartaSi has a silobased channel management could help reduce out-of-service time and costs,” Gotti said. approach and doesn’t have an omnichannel monitoring “It could support the maintenance process and increase the system. “We don’t plan to migrate to a single omnichannel branches’ responsibilities.” management and monitoring system, as each bank uses different channels, and a single omnichannel manage- CO-OP Financial Services ment and monitoring system isn’t possible in our business model,” he said. “My recommendations for best practice for ATM management and monitoring in an omnichannel environment are CartaSi accesses Auriga’s monitoring system from a Web- holistic management and monitoring that includes hard- based operational management console, Gotti says. ware, software applications, cash management and transaction processing to maximize the availability and reliability Gotti’s recommendation for best practice for ATM manage- of ATMs,” said Terry Pierce, senior product manager at ment and monitoring in an omnichannel environment is to Rancho Cucamonga, California-based credit union ATM improve monitoring systems with operating system errors network operator CO-OP Financial Services. and ATM driver errors. “My requirement for effective ATM management and monitoring is an affordable and flexible Because it operates disparate systems, Co-op Financial software platform with a Web-based architecture and thin Services doesn’t plan to migrate to omnichannel manage- client technology,” he said. ment from its current siloed management systems, Pierce says. For the same reason, it has no plans to migrate its “I think deploying meeters and greeters within bank branch- siloed monitoring systems to an omnichannel system.

“We use desktop operational management consoles to John Balose, director of ATM product management at access our monitoring system, but would also like to use First Data. “As ATM hardware and software vendors don’t Web-based operational management consoles and native provide switching and processing services, as well as the applications for smartphones and tablets,” Pierce said. diversity of online, mobile and tablet technology providers, common standards don’t exist for the exchange of infor- “I think deploying meeters and greeters within bank branch- mation between channels. So data and hierarchy protocols es who have a monitoring app on their smartphones or tab- for channel preference and a common way to manage that lets could help reduce out-of-service time and costs,” Pierce experience can present a unique set of obstacles. With said. “Proactive instead of reactive monitoring is good credit the myriad of technology solutions available to FIs to sup- union member (i.e., customer) service.” port each channel and the obvious challenge of each silo CO-OP Financial Services’ ATM monitoring software and wanting to control their consumer experience, selecting a services are supplied by FIS using NCR’s Gasper Vantage vendor to develop and deliver a common user experience monitoring system. NCR Aptra Vision is the new version that meets the needs of each channel will be a challenge.” of Gasper Vantage, but CO-OP Financial Services hasn’t Balose says many metrics can be measured by an ATM migrated to Aptra Vision. channel monitoring solution. “However, essential compo- “We aren’t satisfied with our current monitoring solution and nents must include the basic answers to the high-level are planning to change it,” Pierce said. questions of ATM availability, transaction monitoring and fraud prevention,” he said. “These metrics provide the “The essential KPIs that need to be provided by a monitor- fundamental answers an FI must understand about its ing solution are availability, incidents, transactions (ap- ATM channel performance: ‘Are my ATMs up and available proved and declined), cash management and status code to consumers or do they need to be serviced?’; ‘How many summaries,” Pierce said. “Our current monitoring solution transactions are the ATMs processing so I know they are doesn’t offer autonomous configuration of new KPIs without at useful locations?’; ‘Are my ATMs getting hit by fraud- input from the supplier.” sters and causing losses for my FI?’”

Pierce says the barriers to moving to an omnichannel sys- “As a technology provider for the ATM channel, we think tem are disparate systems and legacy infrastructure. “My that, in addition to the KPIs related to ATM monitoring, the requirements for effective ATM management and monitoring big ability that many FIs need is the capability for remote are a configurable and flexible system and robust report- management and settlement of their ATM fleet,” Balose ing,” Pierce said. 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 First Data the need for support from their branch counterparts or U.S.-based First Data provides outsourced ATM monitoring service provider.” and management services to FIs, including PNC Bank.

“Our ATM driving and monitoring are outsourced to First First National Bank (FNB) Data,” said Ken Justice, senior vice president and ATM Abdul Aziz Cassim, Head of Self-Service Delivery at South executive at U.S.-based PNC Bank. “We provide oversight Africa’s FNB, has the following recommendations for best and have a lot of our own reporting, but we don’t own and practice for ATM management and monitoring in an om- operate our own ATM monitoring technology.” nichannel environment: “Legacy infrastructure and operational silos are contribu- • Provide a simple, compelling, and consistent customer tors to the challenges many FIs will face in bringing an experience across all channels; omnichannel experience to their customer base,” said

• Optimize existing investments in people as well as technology, • Help your bank transform itself from delivering transactions 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 omnichannel 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. sim. “We wouldn’t be willing to have a single provider for monitoring and for terminal inventory capabilities, as these FNB is rolling out a new monitoring system offering access parts of the business are kept separate. Also, we wouldn’t via a desktop operational management console from an be willing to have a single provider for monitoring, software external supplier. The system will replace a platform pro- distribution and release management. This is because we vided by a different vendor. “We will manage and run this build our own software, and these parts of the business new system in-house,” says Cassim. “Configurations and are kept separate.” customization will be carried out internally.” Integration between the back-end systems and processes The bank would like to be able to access its monitoring will provide the biggest hurdle to overcome in moving to an system from desktop operational management consoles, omnichannel system, Cassim says. “The lack of current inte- Web-based operational management consoles, and spe- gration makes it a massive task,” he says. “Also, some sys- cific native applications for smartphones and tablets. tems are in-house and others are outsourced, and integration FNB’s monitoring solution doesn’t really offer autonomous between third-party vendors can be sometimes tricky.” configuration of new KPIs without input from the supplier. “To an extent, we have an internal configuration capability, Kiwibank but any big changes to code are outsourced,” Cassim says. “Kiwibank doesn’t have an omnichannel banking environ- FNB would be willing to use a single provider for terminal ment at this stage, but, from a self-service perspective, we monitoring and for electronic journal collection, storage would like to move into this space,” said Neesha Vasan, and consulting. “Transactional monitoring and hardware channel manager of self-service at New Zealand’s Ki- monitoring are both commodities that we will outsource as wibank, a subsidiary of New Zealand Post. “Our technology long as we have full control and transparency,” says Cas- platform will need to be developed to make this happen.”

Moving to a single omnichannel management system is spokeswoman for Vienna, Austria-based Raiffeisen Bank also on Kiwibank’s roadmap for some point in the future. International. “Besides, the ATM strategy has to fit with the overall omnichannel strategy such as what is the role of “Our technology roadmap for an omnichannel system will branches, e-channels, etc. That’s the hardest part. Later on, need to be developed,” Vasan said. “My understanding from it’s easier to decide on ATM management and monitoring an ATM perspective is that we need a technology platform solutions. Furthermore, all channels have to fit together, so to enable an omnichannel system for our ATMs. Currently, the ATM (or, in our case, the self-service) strategy has to be we have Diebold ATMs that have layers of different software aligned with the bank’s overall strategy.” that don’t integrate well. Therefore, robust ATM error diag- nostics has been a challenge. We need to upgrade our ATM Currently, Raiffeisen has siloed channel management software stack and introduce a technology platform that will systems. “For the moment, we don’t plan to migrate to an enable omnichannel benefits.” omnichannel management system,” Krenn-Ditz said. “We are still in design discussions, such as what do we mean by Kiwibank has a siloed approach to channel monitoring, Va- omnichannel management in the first place.” san says. “NCR monitors our ATMs via its Gasper system,” she said. “We would like to be able to access our monitoring Raiffeisen doesn’t have a single omnichannel monitoring system via Web-based operational management consoles.” system and doesn’t plan to migrate to a single omnichannel monitoring system. “We have access to NCR Aptra Vision, but we haven’t been using the application a lot, as we’re currently receiving train- “Migrating to omnichannel management and monitoring for the application,” Vasan said. 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 National Bank of Canada shouldn’t be affected by a monitoring or management “National Bank of Canada has a siloed approach to channel system. The barrier to moving to an omnichannel system management,” said Chantal Morel, enterprise architect at is mainly our central software solution, which is at this time National Bank of Canada, one of Canada’s largest banks. only silo-based.” “We don’t plan to migrate to an omnichannel management system, as we think we can have a better management and Raiffeisen uses a Web-based ATM operational manage- alert console for our ATM fleet when we use a system spe- ment and monitoring system that is currently accessible cifically built for the ATM channel. It’s important to manage only via PCs inside its corporate network. The bank also your ATMs and banking kiosks in a single system, but not all would like to access the Web-based system via tablets and your channels.” smartphones.

In addition, National Bank of Canada has siloed channel Krenn-Ditz notes that the bank’s ATM management and monitoring systems, Morel says. “We use an externally monitoring system handles all of its self-service equipment, supplied ATM monitoring system, which we’re satisfied such as statement printers, cash-recycling units and bill- with,” she said. “We use the same company to provide our payment terminals. monitoring software and to operate and manage our ATM “We don’t think deploying meeters and greeters within monitoring services.” bank branches who have a monitoring app on their smartphones or tablets is a good idea,” Krenn-Ditz said. Raiffeisen Bank International “Meeters and greeters have to take care of customers and shouldn’t fix machines.” “With all the available options (for example, cash deposits, full self-service terminal, bill payments), choosing the right Raiffeisen uses an ATM monitoring solution from an external ATM strategy is complicated,” said Ingrid Krenn-Ditz, a supplier that also provides the client software for its ATMs.

“This means integration and interoperability are perfect, and ing to omnichannel management and monitoring isn’t in we’re very satisfied with the solution,” Krenn-Ditz said. “ATM focus today,” the spokesperson said. “We are focusing operations and management are done by our own staff.” now on transforming and building up our channels — for example, the rollout of a new generation of non-cash terminals in 2016.” Servizi Bancari Associati “We don’t have a single omnichannel management system, However, moving to omnichannel management and moni- nor do we have an omnichannel monitoring system,” said toring wouldn’t require UBS to make any organizational Guido Lingua, e-banking services manager at Italy’s Servizi changes, as its organizational setup would fit already, the Bancari Associati. The company provides IT services includ- spokesperson says. ing ATM and POS terminal management services to Italian UBS staff access the bank’s monitoring system from desk- cooperative banks and small FIs. It currently has 563 ATMs top operational management consoles. “We would like to under management. be able to also use Web-based operational management “We use a Web-based operational management console consoles and native apps for tablets and smartphones,” the to access our monitoring system,” Lingua said. “I would spokesperson said. like to be able to use native application for smartphones UBS deploys meeters and greeters equipped with mobile and tablets.” devices in its branches. “We haven’t put monitoring apps on “Deploying meeters and greeters within bank branches who their smartphones or tablets, as the current low complexity have a monitoring app on their smartphones or tablets is a of functionality and the availability of the systems doesn’t good idea, as they would be accessible at any time,” he said. justify such an investment,” the spokesperson said.

Servizi Bancari uses an ATM monitoring solution from Currently, UBS uses an internally developed monitoring Auriga which also operates and manages the bank’s solution, but its future strategy involves using an off-the- ATM monitoring service. In addition, Servizi Bancari’s shelf system. monitoring modules for digital and mobile banking are pro- UBS would be willing to use the same company to provide vided by Auriga. its monitoring software and to operate and manage its Lingua says that since deployment, the company’s monitor- ATM monitoring services. “The current strategic thinking in 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 monitoring is automatic controls with SMS and email alerts,” Lingua said.

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

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, has been done. This generates a positive loop in the FI’s chief technology officer at Auriga operational activities. Q. Can you estimate the benefits in terms of increased Using Auriga’s WWS Monitoring, FIs typically improve their ATM availability and greater operational efficiency that FIs self-service network availability by a full percentage point have seen from using Auriga’s WWS Proactive Monitoring over previous levels. Thus, several of Auriga’s clients have Manager software? achieved more than 98.5 percent network availability as confirmed through independent testing. A. In a medium-size ATM fleet (2,000-3,000 ATMs), after nine months of using the WWS Proactive Monitoring Man- Q. What are your views of the return on investment that ager system, we observed an automatic problem resolution banks can achieve with your solution? success rate of nearly 12 percent. This was reflected in: A. There are several benefits banks can expect to achieve • An average 5 percent reduction in site visits by the with a solution such as WWS Proactive Monitoring Man- hardware maintenance provider; ager, and these benefits directly affect the costs of the FI’s • An increase that can reach 4 percent (in some cases, ATM infrastructure management: 5 percent) in the average availability of terminals in the customer’s ATM fleet. • The number of on-site maintenance operations will decrease, with an immediate benefit in terms of the cost These figures relate to the Italian market, where FARO, a of the service. This is dramatically affected by the pro- performance monitoring entity set up by Banca d’Italia, the activity of the monitoring system, where some “signals” Italian Central Bank, measures banks’ ATM service levels, can be used to diagnose future faults in advance. and there are penalties for each bank that falls below the • The ATMs’ increased availability allows a greater minimum service level of 95 percent. number of operations, and, using the same number The adoption of a proactive system such as WWS Moni- of ATMs, the FI can add different functions with a high toring results in a big reduction of the number of out-of- ROI value. service ATMs due to conditions that can be managed by • The positive loop described above increases the FI’s branches, such as banknote shortages, paper out, simple operational efficiency, with an ROI in terms of fewer jam resolution, etc. total hours spent by operational staff managing their ATM fleet. Operational efficiency is positively influenced by our system, as it enables the staff who directly manage an Q. Can you give me a brief overview of the key features FI’s ATMs to efficiently identify and solve problems on the of Auriga’s ATM monitoring solution? devices, and they know their supervisor can verify if this

A. WWS Proactive Monitoring Manager is a robust, WWS Monitoring capabilities to augment or replace their complete and proven monitoring solution for self-service existing infrastructure in order to optimally balance their networks, including ATMs, kiosks and assisted service functionality, time to market and investment objectives. devices, which generates meaningful data anytime and anywhere and enables FIs to make empowered decisions Q. What is your view of the business case for deploying that increase business performance and drive better con- proactive ATM monitoring technology? sumer experience, attraction and retention. A. When moving teller operations to self-service and Far beyond a simple reporting tool, due to its data-gather- assisted-service devices, complexity and cost are added ing correlation and analysis functions, our system provides to the self-service channel. The more complex the chan- proactive monitoring rather than reactive monitoring. Some nel becomes and the greater the variety of transactions of the key features of the solution are: performed, the bigger the challenge is for the monitoring solution. A large part of this comes from the data FIs will • Holistic and accurate reporting view; require to understand — not just which physical aspects of • Statistics and graphics; their network are working, but also what the customers are • Technical monitoring and transactional monitoring; using and how they are using it. • Remote operations management and commands; Consequently, banks must move toward more integrated • Alarm management; solutions that provide a holistic view of the network, en- compassing hardware status, cash management, trans- • Ticketing system related to incident management; action data, etc. Choosing the right monitoring solution • Self-healing capabilities; to manage your self-service network means significant • Monitoring user activity advances in availability, customer experience and business performance. • Alert system; • Complete terminal inventory management system; Q. What are the barriers or challenges faced by ATM de- • Software upload/download and release management; ployers wanting to deploy ATM monitoring solutions in an omnichannel environment? • Electronic journal storage, collection and consultation; • Self-service terminal handling/driving; A. One of the big challenges is that there is a strong pressure to maximize the lifecycle of legacy infrastructure • Preventive maintenance and real-time engineer track- investments. ing activities. WWS Proactive Monitoring Manager has been designed WWS Proactive Monitoring Manager is already deployed to be easily deployed to protect and complement existing on a large scale by European banks, including multibank legacy systems. As it’s based on an “agent-server archi- institutions. The system can be deployed as part of a fully tecture,” WWS Monitoring can be easily integrated into integrated Auriga WWS Omnichannel solution or integrat- the FI’s existing environment, as it is easily integrated with ed directly with the bank’s existing infrastructure. third-party ATM software applications as well as third-party WWS Proactive Monitoring Manager is highly modular, not trouble ticketing systems. The WWS architecture and only in terms of the service channels it supports — such standardized connector components ensure that new data as ATMs, assisted-service devices and kiosks, but also as providers can be connected to the system without disrup- it relates to the shared business services available through tion to the existing business services. each channel — from basic monitoring features to proactive monitoring, software downloading and electronic jour- Q. What are the essential KPIs that need to be provided nal management. Banks can deploy any combination of by an ATM monitoring solution?

A. Some standard KPIs must be provided by default by a • Field Engineer App — a mobile and tablet app that pro- monitoring system in order to provide a summary of the vides support for field engineer dispatching, tracks the performance of the whole ATM network or of a specific field engineer’s actions step by step, provides calcula- ATM. The goals of these performance metrics are twofold: tions for optimal routes and feeds data into an asset- to provide a real-time indication about specific manage- management system. 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 omnichannel 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 DAVID SMITH, business development manager performance on the self-service network is achieved with at Auriga complete neutrality on the hardware components. 1. Improvements in ATM availability In addition, a set of integrated tools can increase the power ATM availability is a combination of several factors. ATM of the whole monitoring system in an omnichannel environ- monitoring software is certainly very important, but opera- ment. For example, Auriga provides two integrated apps: tional procedures and the SLAs (service level agreements) • Branch Staff Tablet App — a productivity tool that defined with hardware maintenance teams and CIT provid- combines marketing and sales opportunities that can be ers are also important also. addressed by meeters and greeters, with real-time information about the branch’s self-service hardware and Auriga’s customers have typically improved their ATM avail- the customer’s transaction history. Thus, branch staff ability by up to one percentage point after deploying WWS receive all the necessary information directly from their Proactive Monitoring Manager. If you have a big ATM fleet tablet in order to increase the availability of in-branch and your availability increases from 98 to 99 percent, this self-service devices and reduce the costs of unneces- is a very significant improvement. Moreover, in Italy banks sary engineering callouts; are required to guarantee ATM availability of at least 95

percent or face penalties, so it is a major effort to increase software distribution tools can discontinue the license fees this percentage by half or by one percentage point. on these tools.

Our customers also have reported significant improve- 3. Key features ments in efficiency. In many cases, the size of the operational team required to manage the ATM fleet has been The WWS Monitoring’s trouble ticketing system can be reduced by 50 percent or more. However, a significant integrated with a hardware maintenance firm’s service desk element of these efficiency savings are more attributable so tickets can be automatically opened on the maintenance to Auriga’s WWS ATM Smart Client technology rather than vendor’s system for increased efficiency and traceability. purely its monitoring software. Auriga provides ATM monitoring and maintenance services For example, one of our largest customers had 56 dif- for a number of its customers in Italy. As a consequence, ferent versions of ATM software prior to installing WWS. Auriga continues to enhance WWS Monitoring through These software variations were the result of different direct practical experience. vendor hardware, different models, different peripherals, WWS Monitoring is modular, so customers can have etc. Once WWS was installed, all the customer’s ATMs ran terminal driving and monitoring as a package, or they can the same version of WWS ATM Smart Client. As a result, use their existing terminal driving software and just use the system’s complexity was significantly reduced (56 ATM Auriga’s monitoring software as a stand-alone tool. software versions reduced to one). This had a profoundly positive impact on the reduction of downtime even before 4. Dashboarding the monitoring advantages of WWS Monitoring were taken You need dashboarding in order to see the state of health into account. of your ATM fleet. WWS Monitoring’s dashboard is divided 2. ROI into different views for different types of problems that occur, such as low cash or out of cash. It can also provide The remote management facilities within WWS Proactive geographical views. Monitoring Manager generate substantial savings due to reduced on-site maintenance costs. These facilities Using WWS Monitoring, customers can view ATM prob- include the ability to issue device/ATM reset commands lems either graphically or in report form, and can see what from the central location, automated (self-healing) rules kind of service levels they are achieving from vendors for that can respond immediately to various event and status their network. 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 maintenance costs can be eliminated through remote (central) resolutions.

Further ROI gains can be achieved by virtue of the integrated 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 client upgrades, delivery of removable files and retrieval of electronic journals. As a result, customers using third-party

STACY GORKOFF, vice president of marketing 89 percent availability, but the FI is operating at 99 percent at Inetco Systems during peak usage times. By incorporating customer impact metrics into their success criteria, FIs can maximize the Q. What are the key issues in ATM monitoring and man- investment in ATM and real-time transaction monitoring agement? technologies as a customer loyalty and incremental revenue A. In today’s self-service environments, it’s more likely to generation tool. be the dynamic applications, networks or back-end connections that cause consumer interactions to fail or slow down Q. What is your view of the business case for deploying – not the ATM itself. proactive ATM monitoring technology?

So it’s questionable for FIs to base their success on the A. ATM deployers face major challenges. In addition to metric of overall ATM availability. Although it’s still common maximizing their ATM uptime, they need to manage security to measure the percentage of time ATMs can dispense risks, deliver optimal customer experience and generate cash, this metric alone doesn’t take into account parameters meaningful data about their ATMs and customers to make such as location, time of day or peak transaction times. This better management decisions. But this is becoming more means that, with the overall ATM availability metric, we don’t difficult to do, due to: get true insight into how the consumer is affected, or what • Larger volumes and more diverse electronic transactions the impact of lost opportunities is. ATM channel managers are facing an explosion Today’s FIs are putting a greater emphasis on understand- in the volumes and types of electronic consumer ing and analyzing the consumer experience. How many interactions and service types they must support. transactions weren’t completed? How many negative cus- High-value transactions are now mixed with low- tomer experiences occurred at an ATM during an outage? value transactions – everything from checking bank How did this impact my brand, and what was the impact on balances to depositing six- or seven-figure checks. customer acquisition and retention costs? Obtaining complete, real-time “actionable intelli- FIs are interested in customer impact metrics such as: gence” is more challenging than ever before. • Impact of lost opportunities – still considering ATM • Greater infrastructure complexity availability, but based on parameters such as location of ATM tiers/groups, time of day or peak transaction There are a greater number of multivendor times; devices, fraud and security applications, EFT networks and channel options to manage, including • Transaction completion rates and failed customer inter- connections to third-party bill payment processors, actions – this gives a better measurement of how ATM remittance services, etc. network performance directly relates to the customer experience; Many of today’s consumer transactions are often cross-channel or cross-institution, where start and • Transaction slowdowns – how many transactions didn’t end points are different. A transaction may start at complete as expected by the customer, and as regu- an ATM but end at a mobile phone, or it may be lated or agreed to by the service provider; that the back-end approvals are coming from any • Cash usage rates – to predict cash in/out; number of value-added service and host authori- • Average queuing times at ATMs. zation connections. Best practices such as active/active switch deploy- It could be an FI’s ATM network is available 98 percent of ment are becoming the norm, and so are distributed the time, but most of the outages or performance issues oc- data centers, meaning that consumer transactions cur at peak usage times. Also, maybe the ATM network is at

now follow multiple paths – some go to various pay- • You can significantly reduce the operational costs ments switches, and more go to external applica- associated with time and resources to find the root tions servers and third-party service providers. cause of issues that need repair. With a more proactive • New application and system architectures approach to performance isolation, you can find and resolve issues before your customers complain. Many ATM channels now consist of multivendor ATMs, third-party Software-as-a-Service, virtual, Q. What are the barriers or challenges faced by ATM mobile and Web-based application services, deployers wanting to deploy ATM monitoring solutions in an where real-time performance monitoring is often omnichannel environment? limited by lack of support for all transaction types and protocols. A. The main barrier for people wanting to deploy ATM monitoring solutions is proving the value proposition to ex- • Greater consumer expectations ecutives who hold the buying power in their FI. This is why Transactions need to complete within cut-off times the more scalable a monitoring solution is, beyond the ATM or response time targets to meet customer (and in channel, the better. some cases regulatory) expectations. It’s also why the centralized capture and correlation of cus- All this makes the task of monitoring integrated channel deliv- tomer transaction data is becoming so important. It instantly ery and the end customer experience increasingly difficult. widens the value proposition by making it easy for channel For ATM deployers, the ability to fix problems faster, in- managers, marketers, operations teams and data analysts crease transaction-based revenue opportunities and deliver to instantly access the transaction data and customer ana- an amazing customer experience starts behind the scenes, lytics they need to deliver more value to existing customers, and indeed may have begun with ATM monitoring. acquire new ones and improve profitability through better But transactions now take multidimensional journeys ATM placement and service offerings. through the ATM environment. They move through many links, servers and applications on their journey through the FRANCESCO BURELLI, partner at Innovalue network. Whether there is risk of critical customer transac- Management Advisors tions failing or slowing down when you least expect them to, depends on the ability to achieve a real-time, holistic view Q. Can you estimate the benefits FIs have seen from using into the end-to-end transaction journey, not just the individu- the new generation of proactive ATM monitoring systems? al software, hardware or networking components. A. ATM availability is the outcome of several factors, includ- Real-time transaction monitoring solutions overcome many ing the type of monitoring systems deployed and how these of the data collection and ownership challenges that are are leveraged to take preventive or remedial action. Overall, worsening due to infrastructure complexity and growing we’re seeing three trends taking place: transaction types and volumes. Some of the key solutions • The increased investment in and sophistication of ATM provided by real-time transaction monitoring include: monitoring systems; • You don’t have to worry about trying to access and • The increasing use of third-party/not-OEM ATM moni- piece together fragmented data that is owned by mul- toring systems; tiple teams. • An ongoing wave of internalization where ATM opera- • With automated end-to-end transaction correlation, tors move the ATM monitoring functions in-house. This visibility into a multivendor, multiprotocol payments is particularly the case when the same outsourcer man- environment isn’t an issue. ages the ATM monitoring as well as the ATM support.

Based on our experience, we’re seeing increased avail- Q. What are your recommendations to ATM deployers with ability, improved ATM security and an overall optimization regard to best practice for ATM monitoring in an omnichan- of ATM operations through the implementation of proactive nel environment? ATM monitoring systems. A. ATM monitoring is a mission-critical function of any ATM Q. What are the barriers or challenges faced by ATM de- management that has an impact both in terms of ATM per- ployers wanting to deploy ATM monitoring solutions? formance as well as in spotting and limiting fraud and crime losses. From our perspective, the best practices are: A. Legacy ATM infrastructure is by far the most significant 1. ATM monitoring is best performed by a single func- barrier to the deployment of ATM monitoring solutions. tion/unit monitoring the whole set of ATM services and While siloed business units can potentially prove a chal- capable of providing regular feedback to the other func- lenge, the nature of the ATM business is such that a unified tions. ATM monitoring should be jointly designed and channel management approach is the best viable approach regularly revised as a service unit that is supplied to to ATM fleet management, regardless of the ownership of other strategic business units within the wider organiza- the service being deployed through the ATM. tion. KPIs should be designed and set in a way to best A unified ATM monitoring solution owned by the ATM serve both the spot management of the channel as well channel management unit is in the best position to share as to provide input to each service’s strategic planning. information and work together with the other parts of the 2. Adopt a unified and comprehensive monitoring ap- business in order to optimize the services provided through proach to the ATM channel. This includes any third- the ATM. party performance across all services that are provided through the ATM fleet. Q. What are the essential KPIs that need to be provided by an ATM monitoring solution? 3. Adopt a real-time monitoring platform capable of providing a view down to a single transaction level. This has A. The list of indicators can be summarized in two catego- to be scalable, highly configurable and easily connected ries: real-time and historical indicators. to analytics software solutions. Real-time indicators include: 4. Integrate and automate. Performance monitoring should • Status indicators – for example, the actual ATM status be tightly integrated with a analytics platform as well as (e.g., idle versus dispensing versus providing other ser- with a workflow solution whose reach should extend to vices), cash levels and other dynamic indicators (e.g., the other units providing services through the ATM as number of withdrawal operations completed and value well as to key internal and external strategic suppliers. 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.

ED O’BRIEN, director of Mercator Advisory A. Proactive maintenance is a world apart from the tradi- Group’s Banking Channels Advisory Service tional world of ATM monitoring, as even simple tasks such as remote reboot become the norm, which minimizes the “It’s almost foolhardy not to have ATM systems monitoring,” need for field services. Indeed, we see remote diagnostic O’Brien said. “It’s like preventive maintenance for your home tools removing the need for FLM (first line maintenance), or car. Using ATM monitoring technology that gives you as this can now be performed remotely. The benefits to the advance warning of problems means you can take care of is- ATM estate owner are reduced cost of ownership, better sues ahead of peak time. For example, if you detect that the service levels and greater uptime for the ATM estate. The receipt printer is about to fail, and you know that most people ROI for the estate owner is immense. get paid on Friday and then withdraw their pay packet at an ATM, you can do the repair by Wednesday. This will ensure Q. What are the barriers or challenges faced by ATM an optimum service level for your customers.” deployers wanting to deploy ATM monitoring solutions in an Running ATM monitoring systems means that ATM deploy- omnichannel environment? ers can save on field engineer costs, as they don’t need to A. The cost of change is large for banks and IADs, as they send field engineers out on routine maintenance inspec- must change not only their monitoring tool but also the pro- tions to check every ATM, O’Brien says. cessing platform to one that allows remote interaction with “ATM monitoring that feeds into a dashboard is very useful the ATM. There is then also a knock-on effect on the com- for bank executives,” O’Brien said. “They can tell how wheth- munication infrastructure, as this must be aligned as well. er they are getting 99.99 percent or 99.9 percent availability.” Q. What are the essential KPIs that need to be provided by Newer ATMs have more functionality, so they are more an ATM monitoring solution? complex and need to be monitored more closely, O’Brien says. “Being able to monitor not just ATMs but also network A. The essential KPIs are time to fix, uptime and cost of performance is important, as network uptime is critical,” he ownership linked to maintenance costs. All of these lead to said. “For example, if there is a network feed problem and higher uptime and lower cost of ownership. you operate ATMs with a video teller function, then you can redirect the video feed to another call center.” Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an omnichan- Systems monitoring helps to provide an outstanding nel environment? customer experience, O’Brien stresses. “A bank executive once told me that the worst thing is when a customer of A. Several benchmarks exist. However, the key ones for us your bank calls you to say an ATM isn’t working,” he said. at Retail Bank Consulting Group are moving from an aver- “If you have too much downtime at your ATMs, you will age 18 FLM and SLM (second line maintenance) visits per lose your customers.” annum to six to nine visits, along with availability rising from 98 percent to 99 percent.

The traditional method of managing ATMs through physical ANDREW MARTIN, CEO of Retail Bank contact is the same as diagnosing a faulty car by disman- Consulting Group tling key elements, whereas today cars are diagnosed through computer links. The world of managing ATMs has Q. Can you give an estimate of the benefits FIs have seen changed totally, and estates can now be managed remote- from using the new generation of proactive ATM monitor- ly very efficiently with field visits only required in extreme ing systems? circumstances.

We at Retail Bank Consulting Group manage ATMs remote- that the help desk can instruct the agent via XFS to reset ly in Europe and the U.S. from a 24/7 help desk in the U.K. whatever isn’t working. This couldn’t happen in the old world of ATM monitoring. “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 JIM TOMANEY, managing director of Q-ATM automate the process. Real success in monitoring involves “Many banks have legacy ATM systems and legacy ATM linking monitoring to remedial action as soon as possible driving switches that are 15-20 years old,” Tomaney said. “So so that responses can be automated where possible, and, they have an old-fashioned approach to ATM monitoring.” if not, a field engineer is dispatched to fix the problem.”

Tomaney recommends that ATM deployers include up- graded monitoring technology when adding new features DANNY ROGGE, owner of Rogge Consult or new infrastructure to their ATMs. “When banks upgrade their ATM switches from Base24 to Base24 EPS or up- Q. Can you estimate the benefits that FIs have seen grade from Windows XP to Windows 7, that’s a good time from using the new generation of proactive ATM monitor- to upgrade their monitoring system,” he said. ing systems?

The vast majority of the effort in upgrading ATMs is not A. In modern branches where human cash tellers no the technology itself, but rather the implementation of it, longer operate, it’s mandatory that self-service equipment Tomaney says. “I think the process changes are the real is highly available. Unavailability means customers cannot barrier to implementing new monitoring technology,” he be served with cash. said. “Most banks aren’t organized in such a way as to take advantage of omnichannel monitoring from a single Operational efficiency delivers a tangible benefit. In a platform. For example, the ATM business unit will monitor major bank with 2,500 ATMs, a state-of-the-art monitoring its ATM channel and the online banking department will system will easily generate savings of 32,500 hours per look after the online channel.” year. That’s the equivalent of 20 full-time employees.

“A best practice in ATM monitoring is to use software that Q. What are the essential KPIs that need to be provided puts a virtual agent on the ATM at the XFS level to monitor by an ATM monitoring solution? the machine,” Tomaney said. “The virtual agent can take care of problems locally and send reports to the help desk. • End-to-end availability of customer functions such as In the past, ATMs were monitored by data being put into cash withdrawal, cash deposits; the messages sent to the transaction host. So the Base24 • Technical availability of self-service systems (e.g., system would get a transaction request that included data card reader out of service); for monitoring purposes, which is a very 1990s approach. • End-to-end reasons for unavailability of customer In the XFS world, you can have multivendor software. functions (e.g., network unavailable, out-of-cash); This means that any application can register with the XFS layer, including transaction monitoring programs from • Incident rate; third-party vendors.” • Call rate. As an alternative to fixing a problem locally, the virtual As well as availability-oriented KPIs, it’s useful to provide agent can send the event to the help desk, which will several business-related KPIs such as: have rules for interpreting incoming events and for send- • Average transaction times; ing commands to the agent, Tomaney says. This means

• Average amount withdrawn, deposited; About the sponsor: • Number of notes;

• Transaction frequency related to time of day, time of Auriga, with office in Italy, the UK, France and Germany, week, time of month. is one of the leading European suppliers of software and solutions for omnichannel banking. It provides financial These business KPIs will allow FIs to install the right type institutions with products, services and consultancy and number of ATMs in the right locations, which could in for managing self-service, Internet, mobile and branch turn lead to savings of up to 10 percent and more in the banking. Auriga has a proven ability to help banks improve number of systems installed. their efficiency and competitiveness. For more information, visit http://www.aurigaspa.com/eng/ Cash deposit and cash recirculation systems add a significant number of KPIs, including: ATMmarketplace.com, owned and operated by Louisville, • Jam rate; Ky.-based Networld Media Group, is the world’s largest online provider of information about and for the ATM • L1 (invalid note), L2 (false note), L3 (suspect note) industry. The content, which is updated every business and L4b (genuine but unfit for recirculation) rates day and read by business and industry professionals per denomination; throughout the world, is free. • Cassette fill levels.

Q. What are your recommendations to ATM deployers with regard to best practice for ATM monitoring in an omnichannel 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’ monitoring 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 unavailability 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 management systems, and with cash management systems.

ATMIA “Mobile Wallets: Moving Beyond Pilots” www.ATMIA.com Mobile Payments Today white paper sponsored by Auriga http://www.mobilepaymentstoday.com/whitepapers/mobile- “ATM Future Trends 2015” wallets-moving-beyond-pilots/ ATM Marketplace report sponsored by Auriga http://www.atmmarketplace.com/whitepapers/atm-future- “Windows 7 ATM Migration Guide,” by Robin Arnfield, trends-2015/ Networld Media Group http://www.networldmediagroup.com/inc/sdetail/8593/16674 “ATM - Mobile Integration Guide: Strategies for Successful Omnichannel Banking,” by Robin Arnfield “Four Benefits of Using a Multichannel Architecture to ATM Marketplace report sponsored by Auriga Manage ATM Networks” http://www.atmmarketplace.com/whitepapers/atm-mobile-inte- ATM Marketplace white paper sponsored by Auriga gration-guide-strategies-for-successful-omnichannel-banking/ http://www.atmmarketplace.com/whitepapers/four-benefits-of- using-a-multichannel-architecture-to-manage-atm-networks/ “A successful omnichannel banking for a new branch model” ATM Marketplace white paper sponsored by Auriga Auriga showcase on ATM Marketplace http://www.atmmarketplace.com/whitepapers/a-successful- http://www.atmmarketplace.com/companies/showcases/ omnichannel-banking-for-a-new-branch-model/ auriga-spa/

“EMV Migration Guide,” by Robin Arnfield, “WWS ATM: A world class ATM management solution” Networld Media Group ATM Marketplace white paper sponsored by Auriga http://www.networldmediagroup.com/inc/sdetail/8593/17226 http://www.atmmarketplace.com/whitepapers/wws-atm-a- world-class-atm-management-solution/ “EMV, PCI and the ATM Industry,” by Robin Arnfield, Networld Media Group “WWS one to one ATM Marketing Solution” http://www.networldmediagroup.com/inc/sdetail/8593/17477 ATM Marketplace white paper sponsored by Auriga http://www.atmmarketplace.com/whitepapers/wws-one-to- “Getting More Money Out of the ATM,” by Robin Arnfield, one-atm-marketing-solution/ Networld Media Group http://www.networldmediagroup.com/inc/sdetail/8593/17869 “WWS Proactive Monitoring Manager” ATM Marketplace white paper sponsored by Auriga “Mobile Banking and Payments Security,” by http://www.atmmarketplace.com/whitepapers/wws-proac- Robin Arnfield, Networld Media Group tive-monitoring-manager/ http://www.networldmediagroup.com/inc/sdetail/8593/18751 “Global ATM Market and Forecasts to 2020” by RBR http://www.rbrlondon.com/reports/global