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NCR dominates global ATM market for 11th consecutive year

Johannesburg, 11 Mar 1998

Record-Breaking NCR Implementations Echoed in SA Market, Where NDS Now Holds 80% of Local ATM Market NCR has reported that it delivered a record 42 440 Automated Teller Machines (ATMs) to customers world-wide (excluding Japan) in 1997 - representing a 37 percent increase over 1996 deliveries - with a large part of this growth coming from Europe, the Middle East and Africa (EMEA). "In the EMEA area, ATM shipments grew by 25 percent, with South Africa being a major contributor," said Reg Bohler, divisional general manager for self service solutions at National Data Systems (NDS). NDS, a division of the Fintech Group of companies, and the exclusive distributor for NCR products in South Africa, delivered and installed in excess of 1 000 ATMs in South Africa during 1997. "This increases NDS` South African ATM market share to approximately 80%," Bohler explained. "The international 1997 results - the largest global percentage increase since 1988 - position NCR as the world`s leading supplier of ATMs for the 11th consecutive year. "The NCR US market share increase, combined with its strong global performance, are the result of NCR`s focused global distribution and sophisticated solution offerings." In the Americas ATM shipments grew by 48 percent. NCR`s complete global data, including market share figures, will be released by The Nilson Report later in March 1998. US Market In the US, NCR shipped a record 13 864 ATMs, which represents a 45 percent leap over 1996 deliveries of 9 536 and reflects a doubling in NCR`s shipments in the US since 1995. The 45,4 percent growth rate outpaced the US market`s overall expansion of 42,3 percent (from 34,367 to 48,901 units) and means that NCR`s market share expanded from 27.7 to 28.4 percent last year, according to figures published by The Nilson Report in its annual survey of the US market. By contrast, the combined share of the market`s four other biggest suppliers fell from 69,4 to 65,7 percent in 1997. NCR`s record performance was boosted by growth of full-service ATMs as well as growth in the off-premise market. "We believe that our 1997 results will show that we have maintained our position as the leading ATM supplier to major banks in the US," said Andy Orent, vice-president for NCR self-service in the United States. "For three out of the past four years, NCR has shipped more ATMs to banks with more than $4 billion in assets than anyone else in the industry." Another significant increase for deliveries in the US came from the off- premise market in which financial institutions and other ATM deployers commission NCR to supply and install large numbers of ATMs in locations such as petrol stations, convenience stores and malls. "We more than doubled our off-premise installations last year - it is the power growth sector of the market right now," said Orent. "This is a very different game from installing a simple cash dispenser in the corner of a store and walking away. Banks need a solution provider to whom they can outsource all their risk when they undertake high-volume off- premise deals. "In many cases the banks need to place terminals on properties they don`t control to be managed by employees who work for someone else. Very often the installations are in states where they don`t even operate as a bank." In one major US contract last year, NCR installed 3 000 ATMs in just 150 days for Ohio-based Banc One in petrol stations and convenience stores operated by BP Express, Dairy Mart, SuperAmerica, Sears, Kmart, Exxon and Conoco. "There is still plenty of growth in the off-premise arena as convenience charging continues to make it viable to install ATMs in new locations," "We will also see more innovative solutions - such as the Financial Service Centres we have designed and built for 7-Eleven convenience stores - which allow banks and retailers to offer greater service to consumers through self-service"

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Editorial contacts

Janine B"uhrmann
Pinnacle Communications
(011) 789-5125
janine@bcc.co.za
Freda Sage
National Data Systems
(011) 373-4000
Freda.Sage@SouthAfrica.NCR.COM