Diebold Nixdorf's transformation continues as the company's broadening software business opens new opportunities in banking, retail development.
GREEN The merger of Diebold and Wincor Nixdorf two years ago created the world's largest automated teller machine company, but there was more to the deal than ATMs.
Both companies brought extensive software portfolios used to operate ATMs, as well as the retail point-of-service machines Nixdorf made. With the combined resources, Diebold Nixdorf expanded software packages and created a broader line of offerings.
Now 60 percent of Diebold Nixdorf's business involves selling software and services used for ATMs and retail sales equipment.
In other words, the company no longer is your grandfather's Diebold, said Devon R. Watson, vice president and chief marketing officer for Diebold Nixdorf.
ATMs remain a big part of the company's business, Watson said, with the segment generating $3.4 billion of Diebold Nixdorf's $4.6 billion in annual revenue. The new Diebold Nixdorf is a global financial technology company that brings customers a wider array of solutions that are changing the way people bank and shop, he said.
Locally, Diebold Nixdorf employs about 1,400 people split between corporate headquarters at 5995 Mayfair Road and the global logistics service center in CAK International Business Park.
The combined company is the world leader in ATMs supplier and service company, serving nearly all of the top 100 financial institutions globally. It also is a leading provider of retail point-of-sale equipment in Europe and expects that segment to grow in North and South American markets.
"It's a growth area for us," Watson said of the retail product line. While Diebold Nixdorf faces large competitors in the North America retail market, the company is confident it can compete.
Software is key to growth in both business segments. Diebold Nixdorf has been promoting itself as a global leader in connected commerce, with software that lets financial institutions and retailers develop personal, meaningful connections with customers. As an example, Watson notes someone using an airline travel card might receive information to help them connect with other services in the next city they visit.
If a financial institution can help a customer with information and services, it's more likely to get additional business from that customer, Watson said. Software can allow customers to mix and match on different channels as different entities partner and connect with customers. Optimizing customer convenience can improve efficiency for the financial institution, he said.
Late last year Diebold Nixdorf rolled out a software line it has called Vynamic for ATM and retail point-of-sale products. The software can be used with digital transactions, make connections, drive engagement with personalized messages and loyalty offerings, assist with security by detecting possible fraud and track other activity. Watson said the software lets financial institutions do better leveraging data and creating a more personal connection with clients.
More financial institutions are asking about opportunities with software, Watson said. Banks and credit unions are going through changes and Diebold Nixdorf is trying to show how new technology can help. Software changes can help financial institutions become agile and adapt.
An example has been the company's development of software that allows smart phone users to make cardless transactions at ATMs. While that might be a convenience for some, a cardless transaction would be the only way someone without a bank account — considered unbanked or under-banked — can obtain cash from an ATM. In June, Diebold Nixdorf announced it was teaming with Mastercard on transactions using Vynamic to allow ATM withdrawals.
Reach Edd at 330-580-8484 or email@example.com
On Twitter: @epritchardREP