NCR Atleos: ATM Management at ‘Critical Inflection Point’ Due to New Complexities

How can financial institutions (FIs) optimize their ATM operations?

That’s the question at the heart of a new paper published Tuesday (March 18) by NCR Atleos and Datos Insights, focused on the concept of improving ATM operations through ATM as a Service (ATMaaS).

“The evolution of ATM management is reaching a critical inflection point,” NCR Atleos said in a news release. “While ATMs remain a vital channel for financial institutions, the increasing complexity of technology, security requirements, and customer expectations is forcing financial institutions to re-evaluate their operating models.”

According to the release, the paper includes the “ATM Continuum Index,” a framework to help banks and credit unions analyze their ATM operations and find ways to evolve alongside customer needs and technological capabilities.

“ATM networks remain a crucial component of financial institutions’ channel strategies even in an increasingly digital world,” said Stuart Mackinnon, COO of NCR Atleos. “Financial institutions must ensure their chosen approach — whether through traditional management, hybrid models or full ATMaaS adoption — aligns with their broader strategic objectives and operational realities.”

According to the report, the concept of ATMaaS addresses a growing need, as complex ATM technology requires special expertise, particularly in terms of authentication systems and security requirements.

The report also found that there is a continuum of service for ATM management, from traditional in-house operations to fully outsourced ATMaaS models.

“The research identifies four distinct stops along this continuum: traditional do-it-yourself, managed services, advanced services, and full ATMaaS,” NCR Atleos said.

The study comes as ATMs continue to evolve, as PYMNTS wrote last year. For example, these machines are increasingly found at nontraditional locations, such as boutique retail stores, doctor offices and restaurants.

ATMS are also “performing different services in the connected economy,” that report said, citing previous data from NCR Atleos showing the company positing its machines “as a full-service location that can allow deposits, cash recycling and access to account information.”

In other banking news, PYMNTS wrote last week about efforts by banks to use metal cards to tackle a surge in credential-based fraud.

“Metal bank cards aren’t just sleek, status-symbol cards reserved for the ultra-wealthy,” that report said. “The new generation of metal cards feature built-in biometric authentication and tap-to-verify technology, allowing users to approve transactions in real time. Think of it as two-factor authentication, but without the hassle of one-time codes or easily hackable passwords.”