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TRANSCRIPT
Nancy Gail Daniels, EVP &COO
What’s Next IS What’s Now
US Conference 2016
Branch ATM’s
Today: Two Separate Worlds
2
• “Omnichannel” • OCC Branch Challenges • Difficult In Driving Further
Transaction Cost Reductions
Consumer
Retail ATM’s
• EMV, EMV, EMV • CFPB “Choke Point” • Lower Transaction Fees and
Increased Operational Cost
Today: Different Consumers
3
“Digital Natives” more comfortable with
technology than people and demand
convenience
“Traditionalists” prefer personal relationships
over technology at the expense of
convenience
“Under-Banked” 30% of the US, who
need both access to a range of services, and
convenience
Common Thread Is Convenience
Branch ATM’s
Tomorrow: Worlds Collide
4
Consumer
Retail ATM’s Convergence
FI and Retail are Converging Now EVOLVE Technology
Why EVOLVE?
5
• ATM Technology Has Reached An Evolutionary Peak
• ATM’s: A Financial Services UTILITY • Consumers Expect Utilities To Be
Available 100% Of The Time • Does Your ATM Fleet Meet This
Consumer Expectation?
What’s Next IS What’s Now
ATM’s And Customer Satisfaction
6
Relational Quality
Customer Satisfaction
Switching Intentions
Loyalty Intentions
Core Quality
Perceived Value
Direct Link Between ATM Availability And Future Intentions
Projected Transaction Shift
7
2015
Off Premise Transactions Will Double
5.8 B ATM Transactions
1.8 B ATM Transactions
Bra
nc
he
s O
ff P
rem
ise
4.0 B ATM Transactions
205,000 ATM’s
220,000 ATM’s
Cash Dispense
Deposit Enabled
2020
6.5 B ATM Transactions
3.5 B ATM Transactions
3.0 B ATM Transactions
Recycling
200,000 ATM’s
VideoEnabled
190,000 ATM’s
Financial Crisis
New Regulation
Cost Increases
Transaction Shift
Emerging Technology
5.5
6
6.5
7
7.5
8
8.5
9
9.5
10
10.5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Billi
ons
of $
20 N
otes
Cash: More Of It 8
$20 Notes In Circulation Will Reach 10 Billion By 2020
Impact of Mobile (e.g. Apple Pay, Samsung Pay)
2015 2015 2020 2010 2005
Retail Market Saturation
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• ATM Are Pervasive
• Low quality locations are a symptom of saturation
• Consumers Will Choose On Value, Quality, Convenience
• ATM Locations Will Decrease Due to Natural Selection
Location, Location, Location
Consumer Behavior Changes
10
2016 2020
Transactions Will Shift To The Most Convenient Touch Point
Fewer Tellers
Consumers Forced To Use Self Service
Consumers Shift To The Most Convenient
Touch Point
Off Premise Technology Will Match FI Capability
Demographic Shift to Tech Savvy Millennials
ATM Ecosystem Pyramid
11
Lowest TCO
Hardware
Software
Multi-Vendor
Break Fix/CIT Services Best In Class
Tight Connections Between Components Drive The Best Solution
Summary
12 Confidential
What’s Next IS What’s Now
• Retail And Financial ARE Converging • ATM Are Now A Utility • Consumer Expectation Is 100% Availability • Transactions Will Shift To Off Premise Locations • Consumer Will Focus On Convenient Touch Points • Integrated HW/SW/Services Essential For Efficiencies
13
Nancy Gail Daniels, EVP &COO
Thank You!
US Conference 2016