At the helm of Diebold Nixdorf in India is Mr Jaivinder Singh Gill, Managing Director - South Asia & Vice President Operations - Asia Pacific.
With a career spanning near 25 years of sales and operational leadership for various companies in the technology and financial services sectors, Mr Gill joined Diebold from NCR, where he was the Vice President, South Asia Pacific. Prior to NCR, he worked for companies such as Dell, Lenovo and American Express.
In his role as Managing Director, Mr Gill leads Diebold Nixdorf’s sales and services business in South Asia, which includes the India region and Australia. As Vice President, Operations for Asia Pacific, he drives business processes to improve efficiencies for the entire region.
The creation of Diebold Nixdorf represents more than a combination; it’s a new organisation for a transformative era. For more than 150 years, they have been determining the future, guiding their customers strategically for the long term, and forging the path for innovation.
Today, they are the world leaders in driving and enabling connected commerce for millions of consumers each day across the financial and retail industries.
Replying to IIFL, Mr Jaivinder Singh Gill said, “In near future, we believe that the ATMs can become a mini branch through the innovative use of the Multi-vendor solutions”.
Is demonetization the beginning of the end of ATM industry?
We at Diebold Nixdorf India believe that the enhancements in the payments ecosystem both by Banks and technology service providers are complementing the whole payments ecosystem by providing new, innovative solutions and multiple channels for consumers to transact. This is enabling higher customer transactions getting routed through the electronic route. The recent push by the government towards accepting more digital payments accentuates the thrust towards higher transactions in the whole payments ecosystem by including more people financially. This in turn actually benefits all the various channels/ modes of transactions (mobile, ATM, POS, etc.) involved in it as they are direct customer touchpoints.
India is staring at the inception of a digital era which is likely to change the fabric of the Indian market and spending patterns of the customers. How is Diebold planning to place itself in the changing times?
There has been a considerable investment by Banks in the ATM real estate across the length and breadth of the country. Banks realise this investment and are actively looking to unlock this investment value in the channel and expand the locations to become their extended points-of-sale for Banking products, 3rd party tie-ups and customer acquisition points. Diebold Nixdorf’s multi-vendor solutions enable Banks to generate real-time leads from terminals, cross-sell/ upsell products based on customer type, manage customer preferences, and more importantly integrate with other channels – Mobile, Internet banking, CRM systems, to provide a seamless transaction behaviour across channels to their customers. This is what we call an Omni-channel Consumer Experience. In addition, the solution provides real-time analytics to provide the insight to the customer’s behaviour and needs.
Logical security is another area of growth for Diebold Nixdorf. With the ever-evolving digital threat landscape and the persistent risk of physical breaches, security teams are required to constantly face new challenges. For Banks, the security of their banking assets is further complicated by the associated ATM fleets that include hundreds and thousands of terminals, multiple suppliers, service providers and software versions. The attackers are also continuously innovating and creating new malwares; with the advancement in technology, making it difficult to catch the fraudsters. In these circumstances, the ATMs have to be properly secured.
To deal with these threats, it is crucial to secure not only the ATM but the entire ecosystem around it. Every person who comes into contact with ATMs, from consumers to bank staff, technicians and transport operatives, represents a potential weakness in the security chain. Diebold Nixdorf delivers a tightly integrated multi-layer approach that protects against historical and newly-evolving attack vectors. This model ensures that if one security layer fails, others will take over to shield and secure an organisation’s critical assets.
Diebold Nixdorf’s 365° Security Concept consists of several security layers providing a comprehensive protective shield for all channels against all kinds of attacks― physical, logical or fraud. Constantly monitoring for changes to the threat landscape, our approach is proactive and consumer-minded, and it enables FIs to manage risk based on an understanding of both endpoint and consumer behaviour.
Can ATM’s become a single window solution for banking in the future?
Today the ATMs do a lot more than just utilised for withdrawing cash - they are doing bill payments, funds transfers, fee payments, donations, mobile top-ups and cash deposit. In near future, we believe that the ATMs can become a mini branch through the innovative use of the Multi-vendor solutions – generating leads, performing sales for banking products, acquiring new customers, and seamlessly integrating the ATM channel with other channels – Mobile, the Internet, etc. With the extremely large ATM network in the country, this presents a huge opportunity for Banks to expand their virtual & physical presence across.
Critics often question the relevance of ATM’s in the age of app-based payment channels? What’s your take on this?
The cash systems today are more than just cash dispensing machines. They are doing a whole lot of other non-cash transactions which were not possible till a few years back. Also, this business is steadily moving towards cash recycling in which Diebold Nixdorf sees an almost double-digit growth in India – upwards of 30% in FY17/ 18. This is because the cost of cash today contributes to more than 30% of the total cost of operations for a cash dispenser and cash recycling eliminates this by making the same cash deposited by a customer also available for dispensing. All our cash systems today are also equipped with Aadhar-ready biometric readers. With just a local customisation in the software, these cash systems can be enabled for e-KYC which opens up a whole lot of other applications.
Tell us something about the new technologies and the growing retail ePos segment?
With over 29,000 retail e-POS systems installed, Diebold Nixdorf is the leader in this segment in India. According to the various reports, (Planet Retail reports: Internationalisation of Retail, 2016; Global Convenience 2016 - Retail Trends & Forecasts; The Connected Consumer; Global Trends & Forecasts, 2016; Technology Predictions, 2016-2017. EHI Retail Institute: IT-Investitionen im Handel) below are the market trends in the Retail segment:
Business challenges: Changing consumer behaviour, dynamic changes (faster adaptation to market developments, new feature integration), movement between store formats, seamless retailing, expanding geographies, growing importance of technology, IT complexity and growing regulations, Operational challenges: Fast and efficient deployment of IT solutions, Operational Excellence & transfer into new markets, Ensuring IT availability, Enriching the store experience with new technology, Enhancing technical efficiency
In the age of Connected Commerce retailers as well as consumers have to be always “On” across all channels. Nevertheless, the brick-and-mortar store remains as one of the most important pieces of this puzzle. Through advanced technologies and services, Diebold Nixdorf partners with retailers to drive traffic into stores, while helping them update infrastructure and software that can enable a more holistic view of their channels. This and our long-standing expertise in retail, gas stations and banking industries positions us to support retailers around the globe with solutions customised for their unique business needs.
Diebold Nixdorf´s comprehensive, retail-hardened systems portfolio consists of the EPOS, Automated Checkout and Cash Management Solutions; an Omni-channel software suite with an integration layer to easily connect new applications. With an India perspective, Diebold Nixdorf solutions are GST ready.
What kind of growth is the company is expecting by the end of FY18. What are factors that will drive the growth of the Diebold in the coming years?
The company is looking at growth coming in from:
1. Branch Automation:
a. High growth expected in cash recycling with almost 30% y-o-y market growth expected in 2017/18 as per our internal estimates,
b. Branch redesign and teller automation is also a focus area for Banks to reduce their operational costs,
2. Growth in software and services, logical security solutions and ePOS growth in Tier 2/ 3 market segments.
3. There is also a significant ATM replacement market wherein Banks want technology refresh for the ATM portfolio which will result in the replacements reaching up to 52% of the overall procurement by 2021 (Source: Retail Banking Research 2016)