Banks Choose Strikesorb® to Protect ATMs
As banking systems become increasingly complex, protection of sensitive data and equipment on the network plays a critical role. Banks see the availability of all ATMs on the network as a Key Performance Indicator (KPI) to the health of their overall business. To protect ATMs and keep them in service was the primary goal.
- Protecting Automatic Teller Machines (ATM) secures the hardware investment and maintains the profitability of the ATMs. Banks profit on average $153 a day, or $55,776 per year off a single ATM.
- ATM failures increase downtime, impacting both bank revenues and the customer experience.
- Added security measures required during ATM repair and replacement increase maintenance costs.
- An industry-wide issue is the lack of stable power, especially in developing markets.
- Banks often misinterpret electrical surges as general “power-related issues.”
- A recent two year trial conducted by the National Bank of Greece and Raycap tracked NCR Corporation’s ATM products at 64 of the highest failure ATM sites in the network.
One of the most important issues facing retail banking institutions today is the reliability and availability of their critical systems. ATMs have proven to be extremely vulnerable to the effects of transient over voltages caused by unstable power grids and lightning strikes.
Protect ATMS – A Little Background
- Raycap’s research showed that the cost of the purchase of one ATM can reach well above $20,000. Adding service or maintenance contracts can increase this cost substantially.
- Banks are installing an increasing number of new ATMs in developing markets, where there is greater likelihood of inconsistent grid-side power problems.
- IP infrastructure is rapidly changing ATM technology, forcing the banks to refresh ATM hardware and software. The average lifespan of an ATM is five years.
- Service contracts may be an essential revenue source at a fixed rate. Reducing the amount of service calls would increase profitability of those contracts. Higher ATM quality will support the ATM manufacturer’s brand promise and increase potential market share.
- In cooperation with NCR Corporation, Raycap Strikesorb was defined as a proof of concept trial with the National Bank of Greece to protect ATMs. The two year study was initiated to understand what was causing the different “electrical” failures which were continuing to disrupt the network. Results of the trial are seen in the table below.
Research Approach & Analysis
- Data was retrieved from the NCR network measuring system (NMS) supervising the National Bank of Greece’s ATM network. It showed that many ATMs had frequent damage from power related incidents.
- For the trial Raycap selected 64 ATMs with the highest incidence of power related problems. Statistical results were collected over a two year period.
- Raycap Strikesorb was designed as a tailor-made product which applied the proper power protection combination for protecting ATMs and keeping them in operation. Their solution facilitated easy installation while protecting both the AC power and ethernet (signal) ports.
- The NCR/Raycap solutions have now also been adopted at other banks worldwide, proving similar results.
- Using NBG KPI values (based on increased uptime) and the savings calculation, NCR/Raycap was able to show tremendous savings.
- Power related incident data were compared for all 64 ATMs. After the deployment of Raycap’s surge protection solution, and having used the same metrics and time period, power-related failures were completely eliminated, from 106 incidents down to zero.
- The financial model considers the total cost per service and the revenue loss due to ATM downtime. We found that the overall net annual savings for one ATM is $2,842; a savings of $181,905 for the 64 selected ATMs.
- This amounts to a total savings of more than $1,145,993 over the lifetime of the 64 units.
- The outcome of the protect ATMs case study showed the payback period of the Raycap/NCR ATM surge protection solution was less than 2 months.
Raycap/NCR study of 64 ATMs at National Bank of Greece, 2012-1014.