August, 2011

Optimizing ATM Transactions with Intelligent Deposit

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Agenda

• Trends in the banking market

• Business issues solved by Intelligent Deposit

• Member experience

• Case studies

• The Solution

The Next Evolution of Intelligent Deposit

Paul Verra, NCRMalon Updike, NCR

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Polling Question #1

Have you deployed deposit automation (no envelope)?

1. Yes2. No

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Common Financial Institution Issues

Reducing the cost of transactions, a closer focus on teller costs

Enabling revenue-generating transactions beyond deposit to account; e.g., bill payment

Transaction-centric to sales-centric branches

24x7 convenience for members

Eliminating disputed deposit transactions

Common Issues

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Trends in the financial service market

Intelligent Deposit, Remote Deposit

Capture & TruncationMultivendorStrategies

CostReduction

RegulatoryCompliance

Risk MitigationFraud

Management

BranchExperienceRedesign

MemberIntimacy &

Loyalty

MemberExperience

PersonalizationMobile and

Online

Merged Channel

Integration

Managing OperationsManage Cost & Control Risk

Focusing on the MemberGrow Revenue & Improve Service

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Business issues solved by Intelligent Deposit

Cost reduction through operational efficiency

Member experience

Revenue generation

“The self-service channel we provide enables consumers to carry out transactions quickly, at a time and location that suits them.”

- Daniel Stancu, Global Transaction Services, Citibank Romania

- Cillia Thang, IT Project Manager, HSBC

“We are selling more credit cards and housing loans, and the repayment of these can actually come through the Express Cash Deposit Machines.”

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Polling Question #2

What issue would you like to resolve by implementing IntelligentDeposit?

1.Cost reduction through operation efficiency?2.Enhanced member experience?3.Revenue generation?4.Expanded footprint?

How does the cost of accepting deposit transactions at the teller compare with accepting them at the ATM?

Operational Efficiency

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Improving branch efficiency

Member depositamounts match

the member receipt

Branches and the back office will make fewer adjustments /per-year-saving time, postage, and member frustration

Less time spent on FLM tasks

With faster and easier fault identification and resolution, staff spend less time fixing/maintaining and more time selling

Less time processing ATM deposits in

the branch

2x faster identification and resolution of issues

Branches spend millions of hours/per year supporting teller deposits

Faster diagnosis and resolutionof faults

Onboard tuition fornew and inexperienced staff

APTRATM Self-Service Assistant

Faster and more accurate fault identification and

resolution

Minimize SLM escalations, improve staff training

With NCR SelfServ™, branch staff will spend less time supporting the ATMs and errors will be virtually eliminated

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Business services

Bulk cash deposit

Multiple check deposit

Cash and check immediately validated, deposited value credited in realtime

Supports “last-minute” payment of bills, repayments and other payment transactions

Reduce check deposit cost, fees and fraud

24x7 service critical to time-poor business members

Intelligent, daily deposit-based transactions

Effective cash flow solutions

Enhanced funds availability

Address the problems faced by your business members

Bill or loan repayment - through a credit union’s self-service network

What initiatives do you have to sell more products and services within your branches?

Revenue Generation

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Revenue generation

Revenue Generation

Release branch staff to sell

Generate revenue from fees/service charges/commission

Minimize SLM escalations, faster and easier staff training

What impact does queuing have in the branch and on member experience?

Member Experience

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Polling Question #3

Do you still have members coming into your branch/lobby/drive through to make a deposit transaction?

1. Yes2. No

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- Synergistics Research Corporation

“95% of consumers associate the level of service they receive in the branch with the overall impression they have of the financial services provider.”

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The member experience…

• Research has shown that a large FI could experience a swing in revenue by as much as $242M depending on the levels of the customer experience it provides.

• FI revenues could change by $242 million. A large FI with customer experience in the top quartile could end up with $43 million of additional purchases and $51 million of lost business avoided, resulting in an additional $94 million of revenue. FIs in the lowest quadrant, however, can end up dropping $148 million below the norm.

• Getting the member experience right can help deliver tangible business results.

• Attract and retain members.

• Sell more products and services per household/members.

Will it make you or break you?

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Improving the member experience

Member deposit amounts match the member receipt

Faster print and shorter receipts with 2ST™ Technology

Missing envelope is a common member frustration

Credit Unions can extend the cutoff as they are no longer dependent upon processing the physical checks

Immediate credit for validated cash, even checks

Proof of deposit via itemized receipt including the check image

Check images printed on the back of receipt providing proof of deposit

Faster Transaction& Real-Time Printing

Members getTimely Credit toTheir Deposits

No More Envelopes

Extended DepositCutoff

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Member migration = acceptance

24x7 Intelligent Deposit services

More accessible and available

30 minutes reduced to 7 minutes

Around 60 seconds versus 3 minutes average at the teller

Compact and intuitive user interface maximizes adoption

Consistent user experience in any location

Added MemberConvenience

Fast TransactionSpeed

Intuitive andEasy to Use

Reduced TimeSpent Queuing

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In summary…

OperationalEfficiency

Revenue Generation MemberExperience

NCR can unleash costsavings of up to 25% perteller for deposittransactions. NCR is theonly solution provider thatallows you to eliminatepaper waste and printcheck images on both sides of the receipt. With the highest levels of availability, you can reduce the cost of deposit acceptance andprocessing.

NCR has the only platformthat puts time back into the hands of your branch staff. With the highest reliability levels and a state-of-the-art full motion video lead through, staff spend less time fixing.

With a compact and intuitive user interface,fast transaction time,coupled with on-screenimaging and industry- leading printing technology, NCR SelfServ is the only ATM in the marketplace to deliver an unrivalled and fulfilling user experience.

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How Do I Start?

Point-of-Service Experience Solutions

Improving operationalefficiency

Exceptional memberexperience

Expand Branch Footprint

Look what members have achieved with Intelligent Deposit from NCR

Case studies

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Extraco Bank, USA

Integrate the advanced functionality in their ATM network

Deliver to customers the opportunity to bank where, when and how they wish

Support the new model without sacrificing brand image and hard-earned, valued relationships already established with its customers

A total end-to-end solution—offering hardware, unrivalled APTRA software

Accept and validate cash and checks in real time

Extraco branded and trademarked their machines, renaming them “iTMs” to distinguish them from their traditional cash dispensing ATMs with the help of NCR consultants

Within two months, cash and check deposits had exceeded 1,100 transactions per month

The response from customers was so positive that it prompted the order of additional NCR SelfServ ATMs

Six months after their installation, Extraco was processing over 8,800 deposits per month (equivalent to approximately three FTEs if the same transactions were carried out in the branch).

“One of the main reasons why Extraco made the move to NCR was that it demonstrated a real understanding of self-service. It not only matched our strategy, it enhanced it. NCR had to prove its hardware, its software and its ability to provide an excellent service to us. On all counts, they’ve more than exceeded our expectations.”

-Sandra Dixon, EVP/Group Executive, Operations

BusinessChallenges

The Solution

The Results

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Consumer Payments – Citibank, Romania

Easy identification of payments to facilitate consumer adoption

New bill payment collection channel for corporate customers to reduce late payments and high processing costs

Reliable 24-hour payment channel able to cope with variable climate

User-friendly solution that identifies payee, amount and issuer

Accept and validate cash in real time with overpay credited toward next payment

Reliable channel handling high volumes of transactions in adverse environmental conditions

Citibank further strengthened its relationship with its customer base and is attracting new corporate customers

Bank is generating per transaction fee income and improving brand awareness

2,000 payments per month, increasing cross-selling opportunities

“The self-service channel we provide enables consumers to carry out transactions quickly, at a time and location that suits them.”

-Daniel Stancu, Global Transaction Services, Citibank Romania

BusinessChallenges

The Solution

The Results

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ABNB Federal Credit Union - USA

Gain competitive advantage in a highly competitive market

Expand coverage in Chesapeake Virginia

Attain minimum of 6% market share in 3 mile radius

Deposit Automation ATM that accepts checks and cash

End-to-End image processing of the checks to reduce CIT costs

24 x 7 image deposit capability

Now processing 5,000 more deposits a month with no increase in staff

Cost to provide the new service is one-fifth the previous costs fro envelope processing

“The cost efficiencies make it practical for any size institution to deploy deposit automation…A picture is worth a thousand

words.”- Carl Ratcliff, President and CEO

BusinessChallenges

The Solution

The Results

Member feedback has been very favorable and members have quickly accepted new technology

The Solutions

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Polling Question #4

Assuming a touchscreen ATM, what is the optimum number of 'touches’your members should make in order to complete a deposit transaction:

1. 0-42. 5-73. 8-10

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Deposit evolution in the US.

Envelope depositSingle check

and cash deposit

Bunch check deposit

Bunch check and

cash deposit

The Solutions

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End-to-end deposit processing

Distributed CaptureATM Network

Host

Check ImagesCheck and Cash

Deposit Transactions

Physical Checks

ATM CheckProcessor

NCR BunchNote Acceptor

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The Best Member Experience

• Deposits as easy as 1-2-3• Single Bunch• Cash and Checks• One Slot Insert

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The Scalable Deposit Module (SDM)

Single member interface• Accepts up to 50 notes or checks• Up to 1800 notes and 1600 checks capacity• Supports mixed cash and check deposits*• Checks inside safe• No coin dispenser restriction* Depending on software and host environment

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SDM overview

Questions?

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Contact Information:

Malon.Updike@ncr.com770-418-4660

Paul.Verra@ncr.com+31 35 60 32 935

Thank you!

www.nafcu.org/ncr