<<I'm in agreement with you on NCR being a mature company. I can't walk into a gas/convenience store or supermarket without available money machines. Not wanting to start a debate, just letting you know I see it your way. I will be tracking this one though, because Jeff does have his STUFF together.>>
With my 15 years in the banking business, it was certainly true that in the late 80's early 90's it looked like the penetration of ATMs into profitable locations had peaked. However, ATM produces have introduced new models with lots of handy new features like color graphics screens (improving user interface, a big barrier to increased use), flexible dispensers (diversification out of cash delivery only), greatly increased intelligence and reliability (lowering the TCO), etc. etc. etc, that have dramatically reduced the transaction breakeven point so that many locations not previously profitable now become potential installations. Also, there are a lot of old ATMs out there ripe for the replacement market.
The biggest threat to this business, however, would be the cashless society. For the last 40 years, the fastest face to face commercial transaction has still been cash, but smart cards could finally put an end to that. Is NCR hedging that bet with any smart card alliances or R&D? |
