Customization of ATMs in Brazilian banks challenges suppliers

The high levels of customization of ATMs and related banking equipment demanded by financial institutions in Brazil has forced suppliers to adapt their operations and manufacturing processes in the country.

That's according to Elias Rogério da Silva, VP for the Caribbean and Latin America of US ATM and self-service provider NCR, which claims to be the worldwide leader in the segment.

Silva referred to adaptations and modifications required by each bank in the design, such as the location of the cash withdrawal hole, and the interface of ATMs. Security, he added, is a concern particularly relevant in Brazil.

"While in other markets this rate of customization is around 10-15%, here in Brazil it is about 90%," Silva told reporters at an NCR year-end conference in São Paulo. "I can't sell to bank A the same technology I sell to bank B."

According to the VP, such a level of customization led the company to design a specific business plan for the country, making Brazil an international R&D hub. Around 3-5%, or some US$300mn, of NCR's global revenue goes on R&D and innovation, he said.

Precisely to meet the Brazilian customization needs, the company opened in March this year an ATM manufacturing and engineering facility in São Paulo, with annual capacity of 7,000 units.

The plant is NCR's fifth ATM factory worldwide and first in Latin America. The company has other manufacturing facilities in Brazil, located in the Manaus tax free zone in Amazonas state, that are used mostly for assembling purposes, Silva said.