NCR Corp. (NCR) recently announced that it will provide its SelfServ Automated Teller Machines (ATM) to Texas-based Broadway Bank. Financial details of the deal were not divulged.
As per the terms of the deal, NCR will provide the Bank with SelfServ ATMs along with Solidcore Suite for APTRA. NCR will also provide support for hardware and software maintenance. The Bank will replace its old ATMs with the new ones to provide best-in-class retail services.
‘Solidcore Suite for APTRA’ is a part of NCR Corp.’s APTRA Software Security, which provides customers with comprehensive ATM security. The software safeguards against unauthorized code on ATMs and insider attacks. The security solution will not only provide real time threat protection from malicious software, but also reduce servicing costs.
We remain highly positive on NCR Corp.’s ATM footprint. According to a study published by Retail Banking Research, NCR has been the world's largest supplier of multi-vendor ATM middleware and applications for 23 consecutive years. We believe NCR Corp.’s commitment to protect the trust and integrity of the ATM channel has inspired Broadway Bank to opt for the company’s services.
Apart from this, we remain encouraged by the company’s association with leading banks, such as Barclays Bank plc and UniCredit Bank, which have upgraded their ATMs with advanced banking solutions from NCR Corp.
NCR Corp. is keen to expand its share in the financial services market with advanced ATMs.
Over the years, the deployment of off-premise ATMs has increased steadily. Financial institutions are looking to extend their brands' presence and serve customers when and where they want to transact. Approximately half of all global ATMs are away from a bank branch, with 69% of UK ATMs found off-premise.
To capitalize on the increasing demand for off-premise ATMs, the company introduced SelfServ 16 in February. SelfServ 16 is equipped with bank-grade ATM features enabling an ATM experience in premises other than banks.
This apart, we are encouraged by NCR’s strong first quarter results. Moreover, geographical contributions were also significant. We are also encouraged by the second quarter guidance, and believe that the company is well positioned to deliver solid momentum across all its businesses.
However, we are a bit concerned about its Japan business, which has been hit by the recent natural calamity. Moreover, the restructuring initiatives have begun impacting results.
Currently, NCR Corp. has a Zacks #2 Rank, which translates into a short-term Buy rating.
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