ATM’s are getting a lot of attention right now for three reasons:

1. Old hardware that needs to be replaced
2. Regulatory pressures to provide Triple DES encryption
3. Fraud from card skimming, driving to EMV readiness

This is incredibly expensive, with a typical decent sized bank fleet renewal running to US $200 million plus. But this doesn’t get you anything new; just the typical depsoit withdrawal, bill payment that exists today.

The real benefit arises when you get into new applications for the ATM that lever the fact you have secure hardware deployment at convenient consumer locations across the country.

Three strong examples:

1. loyalty points
2. cell phone top up
3. Transit/ tube/ subway card

Thinking this way will start to see a business model around ATM’s evolve that views them as a profit centre, not as a sunk cost.