NCR-Chase ATM Deal - Analyst Blog

Technology and solutions provider NCR Corp. (NCR) kick-started the year with a big move. Yesterday, Chase, the U.S. consumer and commercial banking business of J.P. Morgan Chase & Co. (JPM), announced that it would deploy more ATMs incorporating NCR Corp.'s latest Scalable Deposit Module (SDM) technology.

With this technology, NCR Corp.'s self-service ATMs will significantly reduce the time taken to deposit cash or checks. Generally, customers have the habit of making multiple deposits at ATM counters. The SDM technology can reduce the time for depositing five bank notes and two checks to less than a minute. Apart from reducing transaction time, SDM-enabled ATMs truncate and store checks safely, doing away with the need for an obligatory daily pick up.  

NCR Corp.'s self-service ATMs were introduced in 2008. Since then, the tech firm has continued to build new hardware, software and services to make the future of self-service fast, convenient and seamless. The SDM technology will help financial institutions improve customer experience and manageability of their ATM channels. The technology will not only help Chase to attract more banking customers, but also ramp NCR Corp.'s product adoption. 

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. 

Apart from this recent deal, we remain encouraged by NCR Corp.'s association with leading banks, such as Barclays Bank plc (BCS) and UniCredit Bank, which have upgraded their ATMs using the NCR solution. We are also encouraged by the company's market leadership, successful acquisitions, new product introductions and continued customer wins. However, we believe that near-term visibility is limited due to uncertainty regarding its DVD-kiosk business. 

Currently, NCR Corp. has a Zacks #3 Rank, which translates in to a short-term Hold recommendation.

 
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