1. 1 The ATM – More than just Cash ? Graham McKay Executive Director ATMIA Europe

2. graham@atmia.com Graham McKay Executive Director ATMIA Europe 2 ATM Industry Association (ATMIA) Non Profit Global organisation with over 1000 members in more than 80 countries, covering NA, LA, EMEA and AP. (Database of 10,000 contacts) ATMIA Represents :- –ATM Manufacturers –ATM Deployers (Banks & Independent) –Cash in Transit –Switch Operators –Transaction Processors –Security Providers –Support Products Three prime areas of interest –Security (Global ATM Security Alliance- GASA) –Legislation, Regulation and Standards –Technology, Functionality and Business Efficiency

3. graham@atmia.com Graham McKay Executive Director ATMIA Europe 3 ATM Industry Association As an independent, non-profit trade association, our mission is to :- – to promote ATM effectiveness, convenience, growth and usage worldwide; –to protect the ATM industry's assets, interests, and customers; –to provide education, best practices, political voice and networking opportunities.

4. graham@atmia.com Graham McKay Executive Director ATMIA Europe 4 Agenda items for Discussion Current technology available General Impact of current technology Drivers focussing current ATM functions Potential factors impacting future ATM functions

5. graham@atmia.com Graham McKay Executive Director ATMIA Europe 5 Latest ATM Technology Developments Cash out & Cash deposit Check reader Ticketing/mktg offers Utility Bill payment Enquiry channel Statement printer Card Top up Marketing terminal Secure transaction environment

6. graham@atmia.com Graham McKay Executive Director ATMIA Europe 6 Technology is not the problem Available from all main manufacturers

7. graham@atmia.com Graham McKay Executive Director ATMIA Europe 7 However……… Buying an ATM with “multi-function” capability is just the start. The “switch” network needs to have capabilities for message routing for utility bill payment, and card top-up (mobile phones and pre-paid cards) Bank back office software will be required for deposit automation, check processing, and media marketing distribution. The drivers for this additional investment will be based on the following…….

8. graham@atmia.com Graham McKay Executive Director ATMIA Europe 8 The Drivers for more than Cash CostCause & Effect DemandCause & Effect SecurityCause & Effect

9. graham@atmia.com Graham McKay Executive Director ATMIA Europe 9 COST - Impacting ATM functions Cause –Overall cost of ownership –Cost/risk of Cash ownership and movement –Need for new Revenue Generation –Need for increased Transaction Generation –Need for more Customer Generation

10. graham@atmia.com Graham McKay Executive Director ATMIA Europe 10 Typical Costs of Operation per ATM

11. graham@atmia.com Graham McKay Executive Director ATMIA Europe 11 COST – Effect on ATM functions Effect –Cash recycling –Increased CRM (targeting) –3 rd Party Advertising –Search for partnerships –Mergers & Acquisitions –Expanding to un-banked

12. graham@atmia.com Graham McKay Executive Director ATMIA Europe 12 Cash Handling Chain ATM S U P E R M A R K E T SecurityPac SecuriSafeSecuriTrans SecuriDab Scorpion Villiger Transport SecuriSaf e SecuriTrans Scorpion

13. graham@atmia.com Graham McKay Executive Director ATMIA Europe 13 The Success of Bulk Cash Deposit Amount of customer deposits In 14 months a major international bank has seen approximately £290,000 deposited per machine per month via 150 Deposit Machine rollout ($40m/month) It would now require an additional 105 branch staff to manage these transactions without the device

14. graham@atmia.com Graham McKay Executive Director ATMIA Europe 14 The best way for direct contact ? Consider Banks with Network of 100 or more ATMs?..With average 100 Transactions a Day! 10,000 Transactions happening per Day If “Wait please” screens takes 8 Seconds to authorized the transaction, then you will have 80,000 Seconds a day of SELLING OPPORTUNITY for 10, 000 Customers DAILY AND… Consider the opportunity to reach your Competitors’ Customers using your ATM (Not on us transactions)? Consider the opportunity to reach your Competitors’ Customers using your ATM (Not on us transactions)?OR…. Social impact of locally advertising missing children, accidents, weather warnings, or events !!

15. graham@atmia.com Graham McKay Executive Director ATMIA Europe 15 Reaching the un-banked Prepaid Debit Cards Top up at Bank or ATM

16. graham@atmia.com Graham McKay Executive Director ATMIA Europe 16 Demand – Impacting ATM Functions Cause –Technology Innovation –Customer requirements –Additional Services –Globalisation –Efficiency drivers –Product Standardisation

17. graham@atmia.com Graham McKay Executive Director ATMIA Europe 17 Possible Choices Credit Cards, Debit Cards, Cash, Prepaid Cards and cheque. Is there a balanced offering between Credit cards, Cash, and top up Debit ?

18. graham@atmia.com Graham McKay Executive Director ATMIA Europe 18 Demand – Effect on ATM Functions Effect –Value Add cards –Mobile phone integration –Kiosk integration –Rural need for Multifunction –Inner City Branch separate functions –Branch redesign –Unmanned branches

19. graham@atmia.com Graham McKay Executive Director ATMIA Europe 19 The Success of the Kiosk Number of customer transactions via Kiosk In 14 months we have seen over 6 million transactions and 1 million unique users via our 510 Kiosks (Major International Bank) It would now require an additional 220 branch staff to manage these transactions without the device

20. graham@atmia.com Graham McKay Executive Director ATMIA Europe 20 New Branch Designs ….. Manned Un-Manned ……

21. graham@atmia.com Graham McKay Executive Director ATMIA Europe 21 Integration of ATM, Telephone and Kiosk

22. graham@atmia.com Graham McKay Executive Director ATMIA Europe 22 Direct Service Transactions Roll out Pilot Branches and first Branches with DirectService Roll out DirectService Optimisation of concept Use commercial leverage of the concept Roll out DirectService Fully commercialise concept by sales programme Phase 1 Introduction of concept Phase 2 Optimise and commercialise Phase 3 Commercialise Sales Roll Out

23. graham@atmia.com Graham McKay Executive Director ATMIA Europe 23 Contactless Transportation Payments Combining Pre-Authorised Debit with contactless technology Targeted transport and retail in transportation area Quick serve restaurants Mastercard with TacoBell Touch and go contactless card pilot with Barclays and Visa in London Proprietary examples – Paris Metro, London Oyster, HongKong © 2006 S1 Corporation. All Rights Reserved

24. graham@atmia.com Graham McKay Executive Director ATMIA Europe 24 Security Impacting ATM Functions Cause –Card vulnerability –Biometrics vs PIN –National vs International –Identity fraud –Cash Target –Criminal technology

25. graham@atmia.com Graham McKay Executive Director ATMIA Europe 25 Card Losses in UK

26. graham@atmia.com Graham McKay Executive Director ATMIA Europe 26 Security Effecting ATM Functions Effect –Cash vs Cashless –New Card Technology –Biometrics –Mobile phone integration –Software pattern spend recognition

27. graham@atmia.com Graham McKay Executive Director ATMIA Europe 27 Chip & PIN vs Biometrics CHIP & PIN has dramatically reduced crime, but created a “displacement” crime Traditional biometrics (finger, iris, retina, vein, etc ) still expensive to implement Biometrics using CRM data for “on screen confirmation”, or additional POS identification. Scrambled PIN using either mobile phone or mobile PIN device

28. graham@atmia.com Graham McKay Executive Director ATMIA Europe 28 Software Systems Predictive pattern spend currently used in conjunction with “credit” cards Implementation to include “debit” cards and SMS update of last transaction and location “International” cards to be tagged for use overseas, and with an additional password. Additional password could be CRM generated and/or using a portable PIN update device

29. graham@atmia.com Graham McKay Executive Director ATMIA Europe 29 …and in Summary There are three drivers for ATM functions other than cash :- – Cost Which will result in increased demand for Automated deposit & Cash recycling at the ATM Advertising, CRM and reaching out to the un-banked – Demand New technologies will push the usage of e-cards, and mobile phone use Branch redesigns and integrated Kiosk functions – Security Will increase the drive for biometrics and CRM customer recognition – negate weakness of magnetic stripe, strengthen PIN authentication Provides focus for “cashless” and customer spend prediction software (used with credit cards – limited with debit cards)

30. graham@atmia.com Graham McKay Executive Director ATMIA Europe 30 Through the Wall ATM ! More than just cash ……..

31. graham@atmia.com Graham McKay Executive Director ATMIA Europe 31 THANK YOU FOR LISTENING QUESTIONS ? Graham McKay Exec Director ATMIA & GASA Please contact me for more information regarding the ATM Industry Association graham@atmia.com