NCR Wins New Deal from SBI - Analyst Blog
April 09 2013 - 4:20AM
Zacks
NCR Corporation
(NCR) has won a deal from a new banking client. Recently, the
company secured a contract from the largest bank in India “State
Bank of India” (“SBI”) to deploy roughly 600 NCR SelfServ 32
Intelligent Cash Deposit ATMs across India.
This is one of the largest orders
made by the State Bank of India for its cash deposit ATMs in recent
times. With the implementation of the new NCR SelfServ intelligent
deposit ATMs, SBI customers can avoid the long queues at its
branches as well as avail cash deposits cash using these machines
beyond banking hours.
These ATM’s will help SBI reduce
the cost incurred during cash transactions as it will be able to
shift most of its deposit transactions from the banks to the ATM’s.
Normally, a transaction costs roughly Rs. 40 to Rs. 45, which will
come down by approximately 66.0%.
As per a latest report by RBR
Research and the ATM industry association, the global ATM space
will likely grow at a rapid rate, especially cash withdrawal
services in emerging markets. The report suggests that ATM cash
withdrawals will grow by 90.0%.
The under-penetrated markets of the
Asia-Pacific, the Middle East and Africa are deemed to see the
strongest growth. Thus, these regions appear to be apt for
companies like NCR to focus on.
NCR has been constantly inking new
deals, which are expected to be beneficial for the company going
forward. A couple of months back, NCR agreed to provide support to
eBay Inc. (EBAY) to expand its mobile payment
business, PayPal. As per the terms of this agreement, the PayPal
mobile service will be integrated into NCR's POS technology,
enabling customers to pay their bills at restaurants using a
smartphone.
However, with more players
introducing new products, competition is heating up. NCR’s broad
exposure and years of experience in the ATM space is encouraging
and could help it stay ahead of its traditional competitors
Diebold Inc. (DBD) and Wincor Nixdorf.
Currently, NCR Corp. has a Zacks
Rank #2 (Buy). Investors can also consider other technology stocks
such as Faro Tech Inc. (FARO), carrying a Zacks
Rank #1 (Strong Buy).
DIEBOLD INC (DBD): Free Stock Analysis Report
EBAY INC (EBAY): Free Stock Analysis Report
FARO TECH INC (FARO): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis Report
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