November 25, 2003

BAI News 2003

Various new annoucements at BAI RDS show + nice wrap by Ann All,

Announcements


  • Polaris Software Unveils Award-Winning Orbi One Integrated Multi-Channel Banking Software Solution for U.S. Market and Announces Sun Microsystems, Inc. Alliance Link

  • TransAct Technologies Incorporated (Nasdaq: TACT), a leading producer of transaction- based printers for customers worldwide, today announced that in conjunction with Digital Check, a leading provider of check imaging equipment worldwide, it will be showcasing a new teller printing and check imaging solution for the banking industry at the Banking Administration Institute's (BAI) Retail Delivery Conference and Expo 2003. The solution will feature TransAct's Ithaca(R) brand BANKjet(R) 1500 two-color receipt printer and Digital Check's TellerScan(R) 200 (TS 200) check scanner.

  • Diebold, Incorporated (NYSE: DBD) is expanding intelligent check handling at the automated teller machine (ATM) to include the capture, validation, management and transfer of check images and related transaction information. By forming a strategic relationship with Alogent, both companies have worked together to couple Alogent's award-winning, Sierra Xpedite deposit automation software with Diebold's world-class ATM terminal software. The result is ImageWay(TM). This enables Diebold to offer financial institutions the significant cost savings and operational efficiencies of image-based ATM deposit processing.

  • Mosaic Software, the global transaction processing solutions provider, today announced the forthcoming release of Postilion Realtime 5.0. The software will be available on Linux in addition to Windows and will support both SQL Server and Oracle.

    "This step enables corporations with an investment in Oracle to gain the advantages of using Postilion without the cost of investing in an alternate database," says Johann Dreyer, CEO of Mosaic Software. "In addition, Linux has gained worldwide acceptance as an operating system. We decided to focus on only two operating system platforms -- Windows and Linux -- and two database platforms - SQL Server and Oracle. This focus provides choice, yet allows us to maintain our very high level of quality and client support."

  • Software Earnings, Inc. (SEI), a leading vendor of check image-based application software solutions for financial institutions worldwide, and Infonox, a leading transaction processing software, solutions, and infrastructure provider, today announced the certification of SEI's Enterprise ATM Deposit Processing(TM) solution. This combines SEI core processing imaging technology with Infonox's Active Payment Platform (TM) to support the image capture of both check and cash deposit transactions at the Automatic Teller Machine (ATM). The resulting deposit automation and imaging solution enhances cash and check deposit processing at ATMs, heightens customer convenience, and dramatically lowers the traditional operating costs associated with ATM deposit processing.

  • Alogent Corp., a provider of payment transaction processing solutions for global financial institutions, remittance and payment processors, today announced a partnership with TouchPoint Solutions, a division of Fidelity Information Services and a leading provider of customer interaction software for financial institutions. This product-based partnership provides co-operative certification, seamless integration and interoperability of Alogent's Sierra Xpedite(R) with TouchPoint Teller(TM).

  • NCR Corporation (NYSE:NCR) is taking its highly successful Convenience Connexions(TM) program to the interior bank lobby and grocery store customer service counter. Convenience Connexions offers a Quick-Start program, specifically designed to help banks and grocery stores simplify and accelerate the introduction of new, revenue-generating self-service transactions while reducing service delivery cost.

  • NCR Corporation (NYSE:NCR) today announced a global agreement with ScanSoft, Inc. (Nasdaq:SSFT) to embed ScanSoft's RealSpeak Solo(TM) text-to-speech (TTS) engine within NCR's APTRA(TM) Edge and APTRA(TM) Advance NDC self-service software. The agreement provides the tools for financial institutions to improve automated teller machine (ATM) access for visually impaired banking customers.

  • NORTH CANTON, Ohio and FREMONT, Calif., Nov 19, 2003 /PRNewswire-FirstCall via Comtex/ -- Diebold, Incorporated (NYSE: DBD) today announced it is teaming with Sygate Technologies, the market leader in enterprise endpoint security solutions, to provide superior protection against software security threats targeted at automated teller machines (ATMs).

  • he demonstration will focus on Diebold's Intelligent Depository Module(TM) (IDM), which accepts a check deposit without the use of an envelope -- increasing the accuracy and speed of the transaction and allowing financial institutions to adjust funds availability policies in the self-service environment so they are similar to those applied in the teller line. An image of a check is captured and displayed on the terminal screen for verification and the check image is printed on the receipt along with the transaction details. The IDM is a benefit to both the financial institution and customers.

  • Omron Transaction Systems, Inc., a subsidiary of OMRON Corporation, today introduced its EX-BH2 and US-ABIO banknote recyclers, which are the company's first to serve the North American financial services and retail markets. The recyclers will be featured at the BAI 2003 Retail Delivery Conference & Expo.

  • Today Epson, a leading supplier of value-added banking solutions, introduced its TM-J9100, the only banking printer available today that enables check and ID imaging at the teller station, dramatically lowering check processing costs and losses due to check fraud. By integrating digital check and ID imaging technology into a multifunction inkjet printer, Epson enables banks to capitalize on the tremendous cost-saving advantages of the Check Clearing for the 21st Century Act ("Check 21"), while dramatically improving document handling and printing speed.

  • A new wireless communications option for connecting ATMs was unveiled by Triton today at BAI's Retail Delivery Conference 2003 in New Orleans, Louisiana.

  • Diebold, Incorporated (NYSE: DBD) today announced it will preview three new concept technologies at BAI's Retail Delivery Conference & Expo, November 19-20, in New Orleans. Demonstrations include Magneprint(R), a technology that combats automated teller machine (ATM) card fraud, 3-D imaging at the ATM and Diebold's Thin Client concept ATM software platform. Diebold technologists will be available in Diebold's booth (#2433) at the Ernest N. Morial Convention Center. link

  • Exametric today announced the release of Time and Performance, the latest addition to its Workforce Management Suite. Exametric Time and Performance automates the entire timekeeping process, from time tracking to approvals for payroll processing. Tightly integrated with Click2Staff Scheduling solution, Time and Performance drastically reduces payroll errors and provides managers the insight they need to make decisions "on the fly" about their most significant bottom line cost -- the cost of labor.

Ann All Wrap

Too much Retail Delivery, not enough time
by Ann All, editor 24 Nov, 2003
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Who knew the ATM business was so full of intrigue?

Robin Nenninger, a senior vice president at U.S. Bank, joked that it seemed as if mandates for Triple DES encryption and voice guidance at ATMs were part of some kind of high-level conspiracy for ATM manufacturers to "make bankers spend bazillions of dollars."

Nenninger, who led U.S. Bank's ATM program for nine years before moving into small business sales at the bank, moderated a standing-room-only discussion at last week's Retail Delivery Conference and Expo billed as the "Ultimate ATM Technology and Regulatory Update."

During the fast-moving presentation, Nenninger asked Rob Evans, director of industry marketing for NCR's Financial Solutions Division, and Dean Stewart, Diebold's director of product planning and management, for their takes on several top-of-mind issues including Triple DES, the Americans with Disabilities Act (ADA) and how it relates to ATMs, and the migration from OS/2 to a Windows-based ATM platform.
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Stephen Durrett, president of Iberia Bank, says his bank will run Diebold's Agilis software on both Diebold and NCR ATMs in its fleet.

"Contrary to popular belief, we didn't invent the millennium either," said Stewart, mentioning the industry's last major costly equipment overhaul.

The presentation's overall theme: ATM deployers making an effort to combine "have-to-dos" like Triple DES and ADA with "want-to-dos" like check imaging and customer personalization to take their networks to the next level.

Multi-vendor software, such as Diebold's Agilis and NCR's APTRA, will help deployers do so, Nenninger said. "That's where the conspiracy theory falls apart. It's good for us as bankers."

The presentation's question-and-answer period yielded some interesting comments:

Both Evans and Stewart said that their respective employers have experimented with various forms of biometric identification -- but neither of them believes there will be an ATM-related implementation any time soon. Both cited the lack of standards as a major drawback. Evans believes it's more likely that biometrics may be used to offer premium banking services or as a customer segmentation strategy rather than for security.

"Best efforts are what's important," said Stewart, urging the audience not to wait until the Department of Justice issues its final sign-off on changes to the Americans with Disabilities Act before making efforts to audio enable their ATM networks. "I wouldn't use the fact that we don't have good, final language yet as a reason to do nothing," Evans agreed.

When asked about EMV (Europay/MasterCard/Visa, a standard for chip-based cards), Evans predicted that the "next big discussion" about security would concern the growing problem of card skimming/cloning -- an issue not addressed by Triple DES.

Evans believes that federal regulators could become involved. "I think this will be almost a force of nature," he said. "We cannot have a system that is so susceptible to fraud. If we can't come up with a better, more ubiquitous way of dealing with the fraud threat, then we'll have one handed to us."

As always with the Retail Delivery event, this editor found there were too many interesting stories and too little time to see/hear them. Here's some of the scuttlebutt:

Do-it-yourself marketing: Several ATM manufacturers, notably Fujitsu with its Prism 1:1 and NCR with its APTRA Promote/APTRA Relate, demonstrated how just about any doofus with the ability to point and click a mouse could design ATM marketing campaigns. Drop-down menus allow folks like me (the aforementioned doofus) to switch out campaigns by selecting Flash graphics, times/dates and other relevant details.
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Retail Delivery attendees who crossed the aisle for NCR's and ACI's two-part demonstration of a live implementation of IFX got a snazzy remote control car for their trouble. Now no need to read all of the spam touting this season's "hottest toy!"

"Now it doesn't take a programmer to do it," said Thomas Kabat, director of professional services for NCR's APTRA Center of Expertise.

Screen scene: ATM graphics are ever more eye catching, as evidenced by those seen in the booths of all of the major manufacturers. Sports-oriented graphics designed for an ATM deployed at Villanova University, seen in the Fujitsu booth, featured a basketball that looked real, right down to its pebbled texture. Diebold even showed some 3D (yes 3D, though no glasses were required) images of floating cash and other items.

Returning from a tradeshow and using local ATMs with the old black or green screens is always a major letdown.

Return of the wrap?: Several manufacturers, including Diebold, NCR and Fujitsu, showed ATMs encased in bold vinyl wraps. Unlike previous incarnations, used less than successfully for third-party advertising campaigns, these wraps are intended for branding. Makes sense, as wraps are far less expensive and more flexible than the usual ATM enclosures and signage.

Wall-to-wall ATMs: Through-the-wall models, that is, in the booths of Triton, Tidel, Tranax, GTI and NexTran. These retail-oriented manufacturers are rolling out new models targeted to financial institutions, just in time to offer lower-priced alternatives to FIs faced with the prospects of either replacing or upgrading some of their oldest machines, including costly drive-ups. Triton has sold 50 of its new through-the-wall FT5000 since it went into production three weeks ago, said Triton President Brian Kett.

Serve somebody: Rumor has it that one of the manufacturers mentioned above, in an effort to boost its service infrastructure to better serve FIs, is close to announcing a deal with a company that has a nationwide network of service technicians.

Churning the base: All of the turmoil over EFT networks and changes in the transaction processing side of the business triggered by Concord EFS' acquisitions of several companies and its own pending sale to First Data Corporation have benefited at least one third-party transaction processor, to the tune of 10,000 new terminals added in less than a year.

XML in action: Though XML is still largely a buzzword -- and probably at least five years from widespread adoption, believe most industry watchers -- ACI Worldwide and NCR have teamed on a pilot with the First National Bank of Omaha for a live rollout of the new message protocol slated for 2004's first quarter.

To promote the technology landmark, ACI ran a live BASE24 host on the show floor across from the NCR booth so that attendees could see IFX code for themselves if they wished. "It doesn't look all that exciting," acknowledged George Throckmorton, a senior marketing manager for ACI when he pulled up the XML code -- which to this editor's eyes looked a lot like a diagram of DNA I dimly remember from my college biology text.

The live BASE24 implementation was also a Retail Delivery first, Throckmorton said. Taking BASE24 on the road is just as complex as installing it for a customer -- and ACI's only payoff was publicity.

Concord EFS also ran an IFX demo in its booth. With IFX, proprietary message protocols like NDC and 911/912 will eventually go away, making it far easier to develop and share financial applications. "A teller station can't run 912," explained Kevin Carroll, Concord's director of ATM Services. "With IFX, you won't have to worry about interpreting the messages for each delivery channel. You'll be able to add a new transaction like bill payment to all of your channels with just one change."
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NOVA Savings Bank will combine automated ticket distribution and eye-popping ATM graphics and branding at a machine on on the Villanova University campus.

Not your father's manufacturer: Diebold revamped its booth with lots of brightly colored signage, employees attired in the same vivid hues and vaguely electronic background music. The edgier look was in support of its new Opteva line of ATMs, which were being displayed for the first time in the United States.

About 750 Opteva units have been installed since the line's March introduction, according to a Diebold rep. The biggest booth draw was the 740 drive-up, the newest Opteva model. The manufacturer also was quite bullish on the Opteva's prospects in its third-quarter earnings.

OS options: Eric Sternberg, Tranax's vice president of marketing, said Tranax opted to use the Windows XP embedded operating system in its new PC-based machines such as the MiniBank 2500 and MBS5000 because earlier experiments with Windows CE showed it didn't offer enough functionality. For instance, CE (an OS chosen by some Tranax rivals) will not support a high-resolution SVGA screen, he said.

Leveling the playing field: NOVA Savings Bank CEO Brian Hartline believes the Fujitsu 8015 equipped with Prism 1:1 software his $330 million financial institution recently deployed at Villanova University may help NOVA win more of the university's banking business when its account with larger rival Wachovia expires next year. Working with Fujitsu and software developer mCom Financial Solutions, NOVA designed a method of distributing basketball tickets through the ATM, which is located at the school's athletic office -- and a flashy marketing campaign to promote the service.

Some 35 ATM users have opened accounts with NOVA in the machine's first three months of operation, and Hartline expects a major increase during basketball season.

Double standards: An ANSI (American National Standards Institute) committee (X9.24-2) is expected to approve not one, but two, methods of cryptographic key management for ATMs in its forthcoming standard. According to Dennis "Abe" Abraham, president of Trusted Security Solutions (TSS), a method championed by NCR uses certificates to authenticate keys while the other -- backed by Diebold -- uses digital signatures.
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Behold IFX, the new message protocol that will facilitate the development and sharing of financial applications across delivery channels.

Both methods will allow keys to be remotely loaded into ATMs, a boon for deployers who currently must dispatch two service technicians to an ATM to manually load the keys. However, Abraham wondered, "Why can't we develop one standard everybody can use, just like we did with DES and Triple DES?"

A remote key module just added to TSS' A98 Initial Key Establishment System supports both methods of key management, he added.

Prepaid push: James Anderson, bcgi's vice president of Payment Services, said that prepaid phone top-ups (and prepaid services in general) will get the market push they need when financial institutions begin offering them -- largely because of FIs' strong brand power.

Prepaid customers are more likely to seek out services if they know they can find them at "any Bank X" ATM. In contrast, few if any ISOs have the necessary scope of coverage with a single retail chain, Anderson said. He believes his company's deal to integrate its ATM Recharge interface with ACI's BASE24 software will bring more banks on board.

Interesting idea: Kevin Flood, FleetBoston Financial's vice president of Consumer Banking Delivery Operations & Support, said Fleet has enrolled some 1,800 users in its "Paycheck Anytime" program. Fleet issues an access card/PIN for non-customers who regularly cash on-us payroll checks at its branches, then directs them to an ATM to keep them out of the teller lines.

Fleet cashed about 13,000 checks at six Diebold 1062ix ATMs -- equipped with check scanners and coin dispensers -- during a three-month, proof-of-concept pilot. Flood wasn't sure if the program would expand.

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Posted by Craig at November 25, 2003 04:22 PM