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ATMIA CEO Q&A: 'Cash and digital payments need to coexist' Contributing Editor: Amy Castor, ATMmarketplace.com
Mike Lee is the quintessential diplomat. The CEO of the ATM Industry Association greets you with a smile and a warm handshake. He is the sort of person who appears to always have time for everyone. But in meeting him, what you quickly learn is that despite his pleasant demeanor, Lee is a man with strong convictions, fiercely devoted to defending the use of cash. Last week at ATMIA Europe in Rome, ATM Marketplace caught with him over cappuccino for a long chat about the war on cash and the future of ATMs. We even asked him about bitcoin. Q: What are your thoughts on the war on cash? A: The war on cash has become a philosophical and a political issue. It has reached a stage where the entities that want to abolish cash are impacting human beings around the world, and we are neglecting to look at the realities of the need for cash as well as some of the qualities that cash offers, such as privacy, which can't be replicated in a digital equivalence. Q: The U.K. is moving toward cashlessness. Access to Cash Review chair Natalie Ceeney made it clear Britain doesn't know what will happen next. What role does Sweden play in all of this? A: Britain is looking to Sweden as model for not going too far in pushing a cashless society. The Swedish government suddenly woke up one day and realized it had entered a period of high risk, in the sense that if a cyber attack were to take down their systems, chaos would ensue. So Swedish authorities are now recommending that the citizens of Sweden keep an emergency stock of cash at home. Britain is saying, hang on, Sweden was the poster child for a cashless society, and now they are pushing back and saying we went too far. You need to have a cash system that works, so that people are free to choose. That was the philosophical issue. But you also need cash so that society can continue to operate in the event of an emergency. Q: Earlier, you said something about the public not fully understanding the consequences of access to cash being taken away from them. What did you mean? A: It is a kind of brainwashing through openly propagandistic anti-cash messages, which are completely phony. These messages have no basis in reality or fact. They are designed to brainwash people into thinking that it is inevitable that cash has to go away. Q: Does it have to be one or the other? Cash or digital? A: It is actually a false dichotomy. You have cash, and you have digital payments. They co-exist quite happily. Keep your access to cash. It is one of the most important freedoms that we have in society. Q: Many people have this, sort of, "Well, I have nothing to hide, so what am I worried about?" attitude toward privacy. What are the dangers? A: Whenever you use an electronic form of payment, your movements are tracked by GPS, your transactions are tracked and recorded, and that data is aggregated and sold to be used for marketing purposes where it (potentially) becomes a violation of your privacy. Cash offers anonymity. When I pay with cash, there is no company watching over what I am doing and collecting data about me, which is put into a pool, so that it can be exploited for marketing purposes. Q: Who are the companies pushing the cashless agenda? A: Visa and Mastercard are spending the most money to do that. It is primarily a war that they started. At the expense of so much going on in the world, they are promoting messages that are ultimately destructive. But their technology, I don't have a problem with. It is a good technology, which is why I say we all go together on one journey. Q: Do you think digital currencies, like bitcoin, could replace cash and the need for anonymity? A: I don't think digital currency is going to replicate the qualities of cash. It is a whole different ball game. I don't have a problem with digital currencies as long as they are well regulated. Bitcoin is mathematically sound, it has benefits, but there has got to be some regulation, and you've got to look at the security aspects of it. We also see a company like Uber that was supposed to be cashless from day one. They realized that was impossible in the real world, and they came out with Uber cash. And Amazon now hast real stores. So the physical and the digital, they coexist. That is why I say the future is parallel. Digital payments and cash work together, in my view. Q: What is the story behind next-gen ATMs, starting with a definition? A: A next-gen ATM is an app-based ATM. The consumer would have an app and transact with the ATM through the mobile phone instead of the card. The architecture that you need to make that happen is quite complicated, but we have designed a blueprint, which has got incredible global consensus around it. The initiative started with a bunch of banks effectively saying, "Hey, we are tired of these costly upgrades to Windows." You have a 10-year hardware lifecycle but these migrations to new operating systems are happening in between. As a result, a subcommittee of banks got together, and over several weeks back in 2016, came up with this idea of an API app model and put it in the form of a request for information, which ATMIA sent to 65 manufactures, vendors and suppliers for confidential feedback. We were astounded that the vendors and suppliers totally agreed with the deployers that this is the way to go. So the whole idea is to link over 3 million ATMs and more than 5 billion mobile phones and create a new ecosystem around that. Q: So the ATM then becomes like a bank? A: A bank in a box. We use the word "hub," and I think that is a beautiful description because ATMs are really financial services and community hubs. The next-gen ATM will be more flexible. It will allow different configurations, so retailers will be able to get involved as well. The Importance of Cash and ATMs in Today's Payments Landscape Cash and ATMs still have an important role to play in our everyday lives, and will continue to do so for the foreseeable future. However, banks do need to change how they regard ATMs as simply "cash and dash" machines. There is a huge missed opportunity to explore how the technology can be advanced to deliver a superior customer experience. Over half a century on from the ATM's birthday, headlines about ATMs closing at a record rate and the rise of so called 'ATM deserts' – areas where the cash dispenser is a rare sight – have not been in short supply. ATMs under threat from rising costs One of the main reasons why cash and ATMs are under threat is high and rising operational costs. Additionally, the convenience of contactless digital payments seems to be pushing the use of cash closer to extinction. Indeed, in some countries like Sweden, where cash makes up only 2% of transactions by value today, it is said the use of cash could end by 2021. Nevertheless, it is too early to write an obituary for the ATM. Some people may think ATM technology has lost its edge, but they're wrong. As Mark Twain once almost said, news of the death of the ATM is much exaggerated. Banks who do not invest in their ATMs risk missing out on inherent benefits of the technology, such as to improve customer engagement and create new opportunities and services. Banks should be fighting to retain customers and access to cash is one way of achieving this. Cash will continue to be part of a wider mix of payment methods Cash usage isn't declining across the board – we need to recognise the strong attachment customers have with using ATMs to manage their financial affairs. For example, 75% of point of sale transactions in Western and Eastern Europe are cash-based according to the Pymts Global Cash Index. Research Auriga sponsored also revealed that nearly one in two Britons visit a cashpoint weekly. Cash is losing its pre-eminence, but it is going to continue to be part of a wider mix of payment methods – especially against a backdrop of the questionable reliability of other bank channels following a string of high profile outages of online and mobile banking services. Indeed, the reliability and security of an ATM is often unmatched by those other channels. ATMs can do more than churn out bank notes ATMs need to be redefined. All fleets of ATMs can do much more than deliver a mono-service of churning out bank notes, and there is real demand for ATMs to offer more services. For example, when we researched the types of service that UK consumers would like to see, they responded that bill payments (34%), currency exchange (22%), loan applications (5%) and even ticket sales would be welcomed at cash points. This finding is reinforced by how ATMs already offer multiple services in many European countries like Italy and Portugal. It is not surprising that consumers are demanding to be able to do more on one device. Mobile phones were once just a tool for making phone calls, but now they're used for everything from live video streams to making payments (provided of course the bank's infrastructure holds up). ATMs are in a strong position to adapt as banks rethink how the digital experience can be transformed by vendor-independent software, web and cloud technologies. In fact, the technical barriers to transforming ATMs are relatively low with even the oldest of ATMs having the potential of a revitalised role. What's more of a challenge is getting banks to change their way of thinking about ATMs as "cash and dash" machines. ATMs can offer additional revenue streams New revenue and operational models can support a brighter future for ATMs and self-service banking in branch or on the street. The ability to cross-sell other bank or third-party services and products could provide revenues that could secure the future of previously unprofitable ATMs. High operational costs for running networks of ATMs could also be reduced by new generations of ATM management software that is multi-vendor and can use better data analytics to deliver major cost efficiencies. By better data collection and correlation, banks can automate how they determine the most efficient cash delivery and collection schedule and processes, enabling a drastic reduction in operational costs as well as reduced out-of-service time for cashpoints. This of course will impact customers and improve the bank's reputation for quality of service. Having passed the 50-year milestone, many ATMs have ended up as isolated parts of many banks' customer relationship management systems. How ATMs can be seamlessly integrated into other customer engagement channels is very much the future of the ATM within a new generation of bank branches that many banks are beginning to roll out. Personalisation can take customer experience to the next level The ATM remains one of the main ways consumers interact with their bank – which means banks need to make as good an impression as possible. Personalisation can take your customer's experience to a new level. Smart ATMs could pre-empt what a customer wants to do at the machine – for example pre-set fast withdrawal for the customer who always takes out a set amount of cash for weekend expenses, or allowing customers to set up their dashboard to meet accessibility needs. With the large sums of money that banks invest into their marketing activities and into their digital transformation they need to make sure this is replicated across all channels or they will lose out in the future. Digital is strongly reshaping customer experience. Implementing transformation in banking is synonymous with implementing a true omnichannel banking strategy/architecture in which the ATM is fully integrated with all other banking touch points. The bank branch is by no means dead, despite banks having to take hard decisions about their branch networks. Banks are reinventing their branches with a focus on a hybrid branch of self-service or assisted-service machines with better equipped and trained staff. The success of this lies in how staff can be more than highly qualified receptionists and maximise their access to in-branch systems to fully engage with branch visitors on a one-to-one basis. A lot of this intelligence comes from how the branch can optimise its use of cloud-based customer management software to deliver advanced, personalised services in-branch. Self-service machines are freeing up staff Self-service machines, like ATMs, will allow banks to run branches that give customers the best service possible, freeing up staff to focus on delivering exceptional service and advice. Cloud technology allows information and services to be shared over devices in-branch. For example, staff could use a tablet to check the status of machines, and when a customer accesses a device, receive an update about the assistance they might need. Traditional ATMs and other self-service machines with richer, more flexible functionality and features are at the heart of major banks' future strategies, and this is being illustrated by many banks globally. For example, Portugal's Millennium BCP banking group is creating a new kind of customer-centric branch for the future. Each of its new branches is radically remodelled to have a core of self-service and assisted-service machines that can serve all its customers' needs at all times. This includes a video conference function integrated into its self-service terminals that enables face-to-face services for complex financial transactions after the branch has closed for the day. Vendor-independent software is key It is completely within reach for banks to utilise their ATMs to increase revenue and improve service. The challenge for banks in developing smarter digital banking hubs is how they can break through the constraints of sometimes outmoded legacy technologies. This is why it is becoming so essential to choose vendor-independent cloud-based software that can rejuvenate existing ATMs, customise how advanced assisted service devices and terminals are used to lower total cost of ownership, improve time to market and enable more rapid development and deployment of new services. We are on the brink of some very exciting developments for ATMs, but a mindset change is needed. Without the right infrastructure in place banks could risk missing out on some great opportunities. The way people bank has changed. Not only have smartphones completely transformed the way the world engages, global regulations and new software innovations have dramatically shifted the narrative around what it means to be a bank. As a result of these trends, modern consumers are more fickle and fluid in their brand interactions than ever before—because they can be. Watch: Connected commerce is already at work in your consumers' daily lives. (https://www.youtube.com/watch?v=oNQWIec_OK0) Banks and credit unions have an enormous opportunity to take advantage of these changes. After all, financial institutions (FIs) have spent decades building infrastructure and trust. As non-traditional competitors attempt to unbundle financial transactions, FIs should "lean in" to those two key attributes and build on their ability to engage with consumers through their full spectrum of touchpoints, both digital and physical. In the modern, digitized global economy, the ATM is a critical connection point—and it should be a key component of FIs' digital strategies moving forward. Today's digitized self-service channels empower consumers to connect and transact the way they want, wherever and whenever they want to engage. Diebold Nixdorf's new family of self-service solutions, DN Series™, connects physical and digital channels, offering more personalization, more efficiency and more availability to help FIs drive deeper connections with consumers. We've moved from a reactive to a proactive service model, harnessing our powerful DN AllConnect℠ Data Engine—an intelligent data-driven system that integrates big data, machine learning and advanced analytics—to deliver heightened performance and a better customer experience. And we designed recycling capabilities into every terminal, ensuring an optimized cash cycle and a future-proof solution that's ready for FIs' changing needs. DN Series delivers a more personalized experience in a more integrated solution. Take a look at how we rethought the ATM channel from the ground up to offer our customers and their consumers more: explore the family at DieboldNixdorf.com/DNseries.
TLS Enabled ATMs May Still Be Vulnerable to Attack Recent testing in DPL's research and development lab has confirmed that some TLS enabled ATMs in North America may be misconfigured, leaving them vulnerable to man-in-the-middle attacks. Many TLS enabled ATMs leave TLS certificate validation disabled. This means anyone with the right knowledge, hardware and software could manipulate the data being transmitted to jackpot ATMs or read card holder information.
Committed to helping IADs and the industry as a whole to strengthen ATM security, DPL has compiled TLS certificates for all major payment processors into a single file. The file can be downloaded from their website at dplwireless.com/tls-resources and placed on a USB storage device, then installed on ATMs.
DPL is inviting anyone with questions regarding proper TLS configuration or other ATM security best practices to contact them toll-free at 1-800-561-8880 or by emailing [email protected]. GRGBanking, Innovation for a Better Life GRGBanking, a high-tech enterprise listed in the Shenzhen stock exchange market, was founded in 1999 and headquartered in Guangzhou, China. With more than 20 years of development, GRGBanking has become a well-known provider of intelligent financial products and services in the world. In order to stay current and competitive with the latest technology, GRGBanking gives prominence to AI technology. By devoting AI+ Finance, AI+ Transportation, AI+ Smart Security and AI+ Convenience Retail industries, GRGBanking commits to become a leading AI solutions provider. GRGBanking is now the No.1 ATM supplier in China and the 3rd largest in the world. With over 300,000 machines installed, our products and solutions are widely used in over 80 countries and regions worldwide. The products and solutions of GRGBanking have been used in Finance, Retail and CIT sectors. GRGBanking has set up branch offices or subsidiaries in the USA, Germany, Turkey, Mexico, Russia, Singapore, Hong Kong, Indonesia and Vietnam. Over 20,000 GRGBanking employees throughout the world are working together with our local partners to provide the best services. H68V Series:
GRGBanking has been launched its new Cash Recycling Machine, H68V series for a while, and they have been accepted and praised by customers. The H68V series are new generation cash recyclers with modern appearance and large volume cash processing capacity. Their cutting-edge design, high reliability, wide scalability make them a perfect fit in various scenarios. The optional note auditing functionality of H68V series can realize more efficient and precise cash management to reduce your TCO (total cost of ownership). "4S" Key Features of H68V series
Self-auditing solution, new procedure of cash management
Supreme validation, Optimized note validater
Superior expansion, Beyond your expectation
Besides H68V series hardware, GRG Banking is ready to provide you a comprehensive branch service solution:
Besides, GRGBanking provides abundant series of hardware and software products including ATM, cash recycler, cash depositor, cash sorter and branch transformation solutions. GRGBanking also strategically invests into R&D of key AI technologies, such as biometrics identification, big data analysis and blockchain, etc. GRGBanking AI solutions are focused in 4 areas: intelligent finance, intelligent transportation, smart Security and convenience retail. Smart Teller Machine GRGBanking Smart Teller Machine is the remedy to digitize the banking experience for both the teller and the customer. With its many features, over 90% of traditional teller transactions requiring time consuming verification and authentication can be migrated to our solution. The Smart Teller Machine can be customized to transform your banking processes like: Opening a Bank Account, Issuing or Replacing a New Bank Card, Changing your Particulars, and Printing Bank Statements. The Smart Teller Machine can provide your customers with self-service solutions inside bank branches for most transactions while tellers focus their attention promoting bank services. Versatile functionalities: Providing one-stop business processing platform for customers, satisfy comprehensive business needs such as account opening, card dispensing, contract signing, consultation, etc. Counter business migration: I64A ensures easy and seamless migration of complex counter services to self-service, assisted self-service and remote service channel, providing new real-time collaborative customer interaction model. Flexible application deployment scenarios: I64A is easy to be deployed in branch lobby and 24h service zone as an effective way to expand the banking service channels. In fact, according to the Central Bank of China, over 86% of counter services in branches are being migrated to digital solutions meaning that digitized platforms are trending in the banking industry. One customer was able to reduce their average queuing time by 65% and average transaction time by 67% with our Smart Teller Machine that handled over 90% of non-cash counter transactions. With experience using our Smart Teller Machine around the globe, we strive to provide the best digital solutions for your banking needs. If you are seeking branch transformation solutions to digitize your common teller transactions and enhance your customer experience, the Smart Teller Machine is the right solution for you. For inquiries or more information, please contact us at: [email protected] Contact Us TODAY! The future of enhanced function, recycling ATMs is here. In fact, it has been here for years with Hyosung's innovative cash recycling technology. When Hyosung machines are deployed with our integrated software and video assistance support, they can support a wide range of transactions, not just traditional ATM transactions. Hyosung's technology also assists financial institutions by migrating routine teller transactions with the perfect blend of functionality and modern design to complement evolving branch strategies. Not only do we assist in moving teller transactions to a more cost-effective channel, but we also fit into the changing branch and off-premise formats. Our solutions allow customers to choose how they want to interact with your financial institution by enabling a more robust set of self-service transactions including on-demand video assistance delivered through Hyosung's innovative core integration option. Our modular design and high capacity drive our industry-leading availability and serviceability. Learn why large and small financial institutions continue to standardize on our advanced technology, helping make Hyosung the fastest-growing ATM company in the United States. Along with a tailored customer experience, branch owners and operators know that customers and employees are constantly looking to use the most advanced technology in the market. Hyosung is your partner of choice to build the branch of the future with industry-leading ATM technology that is tested, installed and available today. Hyosung remains the industry leader in retail ATMs. In the retail and financial segments, Hyosung has over 140,000 ATMs installed in the U.S., the most of any ATM vendor.
OptConnect to Launch Special Class 4G LTE Modem, mylo With the explosion of the Internet of Things (IoT), expanding as billions of devices connect in our lives, OptConnect has remained focused on making connectivity simple and reliable for everything that matters most. As part of our commitment to innovation, we are getting ready to release OptConnect mylo, a high-quality, category M1 4G LTE cellular modem with magnetic feet built-in. We know how important it is to listen to our customers, and we knew there was a need for a modem with dual carrier failover. You spoke, we listened, and the result is mylo. OptConnect mylo is specifically designed for ATM, POS, and sensor applications using the latest 4G LTE Category M1 cellular technology that offers benefits not seen before. These benefits include:
Steve Garrett, Chief Product Officer at OptConnect, helped create mylo and says that the special class modem is a game-changer when it comes to critical data and constant connectivity. "We're excited to introduce mylo to the ATM, POS, and sensor IoT markets. mylo is perfect for applications that require tenacious cellular connectivity for critical financial and environmental transmissions. mylo operates on the LTE Category M1 bands — the first cellular network that is intended specifically for machines. Unlike other cellular devices that run out of steam when crowds start posting updates and sharing videos, mylo keeps going strong. It doesn't have just one network dedicated to machines; it has two. mylo connects to AT&T and Verizon networks — automatically switching between them — or the most reliable connection possible. Its compact and lightweight design means that it fits virtually anywhere, and its magnetic base means it stays put. When data is critical, and tenacious connectivity is required, mylo is the way to go."
Here at OptConnect, we are continuing to grow and innovate. If you think what we have built and what we have provided has been impressive, just wait. We're never done, we're just getting started. OptConnect mylo will be available in Q1 of 2020. For more information, give us a call at 1.877.678.3343. Despite the emergence of new payment technologies and the growth of digital payments cash remains a resilient payment method, and in many cases is the preferred option. For some consumers, their cash preference is due to its convenience, ease of use, acceptance, privacy, as well as the gig economy's contribution to cash usage. The relevancy of cash is clear in its frequency of use, with cash accounting for 26% of all personal consumer expenditure globally.[1] ATM features and services are of critical importance to consumers. This is supported by the fact that in a recent survey 64% of participants said that participation in a surcharge free ATM network was an important characteristic when choosing an new bank, and that in general younger consumers place a greater importance on ATM features.[2] While we know that ATM is an important channel for consumers, it is also clear that there is room to improve upon the consumer experience at ATM. Visa supports the continued demand for cash payments by 1) providing cardholders with increased access to surcharge free ATMs, 2) offering enhanced functionality at the ATM, and 3) creating greater clarity about ATMs by improving the Visa ATM Locator. Surcharge fees are a known barrier to ATM usage, with 77% of consumers stating that they would do anything to avoid paying ATM surcharges.[3] Our strategy in expanding surcharge free access is to create a surcharge free ATM foot print in convenient locations around the world, such as airports and retail locations in the most heavily trafficked tourist destinations. Domestically, Visa has begun to grow a surcharge free network through a partnership with Cardtronics, which currently has 800 surcharge free ATMs in Costcos across the United States that are available to any Visa/Plus cardholder. Cash is even more significant of a payment method in a cross-border context, with 77% of consumers preferring to pay with cash while traveling internationally,[4] making ATM a critical channel for acquiring foreign currency. In order to remove barriers to ATM usage, Visa is in the process of establishing a surcharge free ATM network with a set of international issuers and acquirers with the hopes of driving cross border ATM usage. This service will create a consumer experience that disproves the misconception that ATMs are a more expensive means of acquiring foreign currency. This network will provide value to our clients by providing them with a Visa backed and managed solution that drives value to their cardholders and helps issuers earn top of wallet status. Additionally, in order to continue to improve the cross-border ATM experience Visa recently approved changes to allow certain ATM acquires to conduct dynamic currency conversion. Dynamic currency conversion offers consumers the option of paying in their home currency while traveling abroad, which allows them to know the exact value of their transaction in real time. Dynamic currency conversion is beneficial to acquirers, because they then capture the foreign currency exchange fee from the consumer rather than that fee going to the network. Consumers are accustomed to receiving rides, food, and shopping experiences when how and where they want- banking and paying should not be any different. Consumers are increasingly comfortable with and prefer digital solutions for their banking needs, and the rise of branchless banks increases the desire for ATMs to stand in for the functionality of a teller at a branch location. One area of focus for developing ATM features is increasing availability of cash in deposits at ATMs. There are many use cases for this, one of which being for those working in cash and tip heavy industries. Expanded access to cash in deposits will allow these individuals to safely deposit and store their cash, reducing the risk of theft and loss, while providing an additional use case for ATMs. Not only is Visa seeking to expand access to surcharge free and higher functioning ATMs, but we are also looking to help consumers make more informed decisions about their ATM transactions. Investing in the Visa ATM locator will provide greater transparency into ATM transactions, by adding additional features, such as indicating which ATM locations offer DCC, an integrated foreign currency calculator, whether an ATM has a surcharge fee, and if so the fee amount. Visa feels that by addressing ATM pain points, such as the presence of surcharge fees, limited functionality, and lack of information, Visa can increase consumer preference for ATMs and drive value for ATM acquirers. If you are interested in being a partner or learning more about the ATM products and services described here please reach out to the global ATM product team at [email protected]. [1] Euromonitor Merchant Segment Study 2018-2019, July 2019
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"Simply enabling TLS is not enough. TLS certificate validation must be enabled and the correct certificate needs to be installed on the ATM", recommends DPL's CEO Marc Albert. "IADs can also try requesting message authorization codes (MAC) from payment processors. MAC keying, as it is also referred to, adds an additional layer of security commonly used in other countries, such as Canada. Unfortunately, most US payment processors do not currently support MAC"
says Albert.
Furthermore, DPL will be launching two new security products in 2020; a new flagship wireless modem, the 
While DPL's 
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