10 principles for success in outsourcing ATM testing

With outsourcing firmly back on the agenda, below are ten principles to help ensure it is successfully applied within ATM testing:

1. Outsource what you know
This is possibly the single biggest factor in the success of outsourcing AT M testing. Banks must have the internal expertise of the area before they enlist the support of external partners. Ultimately, outsourcing providers will only deliver within the remit they have been set.

2. Retain control of the development process
While outsourcing can add considerable value in ATM testing, there are certain parts of the process which do not lend themselves well to this approach. The relationship between the banks and their ATM software providers is one such area and it is essential for banks to keep control of this process and of the software itself.

3. Maintain control of the overall project
Before outsourcing the project, banks must clearly define the high level testing strategies. With this in
place, they will be in a stronger position to control the implementation of the overall project and manage the relationship with the outsourcing partner.

4. Deploy test automation to get the best of both worlds
Banks can define the overall test strategy and test scripts using a common application that is designed specifically for end-to-end AT M transaction testing. This means that both parties can more easily follow the same guidelines and processes, creating an efficient working relationship.

5. Execute automated tests
ATM transaction testing will inevitably require an element of manual testing. However, banks must look to streamline the process by introducing automation into the process wherever applicable.

6. Adhere to enterprise-wide testing principles
Increasingly, banks are looking for an enterprise-wide testing solution that adheres to the broader methodology across the organisation. As such, ATM testing must be considered outside of the silo.

7. Establish clear reporting procedures
Proper reporting procedures throughout the lifecycle of a project are key to making sure the deliverables are being met and that each party is successfully fulfilling their role. Banks should establish which parties are responsible for which tasks from the outset and put in place a clear chain of communication.

8. Deploy multiple third party vendors and consultancies
In implementing successful outsourcing strategies, banks should look to work with multiple vendors in complementary areas across multiple projects, extending beyond the ATM. In doing this, they can encourage and maintain price competition and service quality.

9. Ensure appropriate knowledge transfer
Outsourcing is a two-way process. Knowledge will be expanded on both sides as the project progresses and it is essential that both parties remain up to date with any developments. As such, banks should ensure there is an ongoing transfer of knowledge so that there is continuity throughout the project.

10. Ensure intellectual property is protected
The testing process involves deploying software from a number of different vendors. This will include the ATM system itself, the automated testing software and any ancillary applications. When managing these, banks should be mindful of their licensing agreements with vendors and take responsibility for ensuring the outsourcing partners adhere to them when working with the applications.

Reducing downtime was top ATM priority for banks in 2008

A survey of delegates at the ATMIA European ATMs show in April 2008 revealed that nearly a quarter of European banks would be addressing ATM downtime as their top priority through 2008 and 2009.

Network availability is one of the most pressing ATM issues facing banks today as a result of recent changes to the network including the migration to the Windows operating system and the introduction of multi-vendor ATM software, designed to work across mixed ATM estates. The potential problems associated with this added complexity has caused concern as evidenced by the fact that almost a quarter (22 per cent) of respondents saw ‘reducing ATM downtime’ as their top priority. Unreliable network availability resulting in downtime has a serious impact on a bank’s brand and customer loyalty, which can lead to lost revenue and potential customer churn.

21 per cent of respondents said that ‘rolling out new customer services’ was the next top priority for their ATM network, underscoring the need for a stable and reliable platform before new functionality can be added. Ensuring a highly available and reliable service for customers is critical if initiatives to add advanced functionality are to succeed. Furthermore, as banks increasingly look to manage and enhance the customer experience through multiple channels, the ATM remains a key point of customer interaction and having an available network 24/7 is a critical foundation for this approach.

Talk within the ATM industry has focused on visionary multi-vendor strategies and the role of the ATM in multi-channel banking, but the survey highlights the real problem that banks face today. Banks are still struggling to get their basics right; if they can’t successfully tackle ATM network availability, they will find it increasingly difficult to introduce any new revenue-generating services that will retain and attract new customers.

The past six months have seen a reduction in consumer trust in banks, consequently providing high levels of reliable customer service through maximum ATM uptime is likely to continue to be a priority this year.

Level Four survey 50 attendees (out of 200+ delegates) at the European ATMs show, which was jointly organised by ATMIA Europe and Retail Banking Research, on 14th and 15th April 2008 in London.

Martin Macmillan

APACS survey - the ATM is still the banks single biggest customer touchpoint

A survey conducted by APACS in November 2008 has shown that British consumers withdraw £3,785 from ATMs on average per year, compared to £1,375 on online shopping transactions. With an average of 60 ATM visits per year, consumers conduct 300% more transactions at this terminal than online shopping. These results confirm the importance of the ATM as the banks single biggest customer touchpoint.

These statistics reinforce that cash is still king as the ATM remains the primary point of customer interaction with banks. As the backbone of their multi-channel strategy, banks must ensure ATMs are not neglected before focusing resources on growing areas. Network availability on a 24/7 basis is critical since downtime can significantly impact upon customer retention and revenue. Advertising solutions and other advanced functionality at the ATM provide significant commercial opportunities, which would be compromised if the network were unavailable.

ATM security is another crucial concern as the APACS survey reveals that ATM transactions outnumber online shopping in both quantity and value. While much attention is given to e-commerce security, banks must ensure that ATM security is a top priority in an increasing complex technology environment. Rapid detection and resolution of network faults through automated testing has become a necessity to achieve maximum ATM uptime and to realise the full potential of the channel.

Martin Macmillan