{"id":29220,"date":"2020-01-24T14:20:55","date_gmt":"2020-01-24T19:20:55","guid":{"rendered":"http:\/\/www.charanis.com\/blog\/?p=29220"},"modified":"2020-01-24T15:06:32","modified_gmt":"2020-01-24T20:06:32","slug":"is-it-time-for-iso-20022-atm-driving-is-it-time-to-abandon-atm-driving-all-together","status":"publish","type":"post","link":"https:\/\/www.charanis.com\/blog\/2020\/01\/24\/is-it-time-for-iso-20022-atm-driving-is-it-time-to-abandon-atm-driving-all-together\/","title":{"rendered":"Is it time for ISO 20022 ATM Driving? Is it time to abandon ATM Driving all together?"},"content":{"rendered":"\n

Summary: Could an ISO 20022<\/a> web-services based ATM Terminal Handler\/Driver reduce costs and accelerate innovation by consolidating applications, connections and platforms. Would bankers, ATM vendors and bank application providers get on board with such a strategy? Do we still need ATM drivers in an IOT world<\/a>? One idea to help banks remain PCI compliant<\/a>, maintain legacy connections but become more innovative and extensible with their ATM strategy in an open banking world. <\/p>\n\n\n\n

There are a lot of reasons to change the way bank\u2019s control and manage ATMs including the software applications driving and running on them. After all, the ATM platform is one of the few channels that continues to be both hardware and software dependent \u2013 in a world of increasingly mobile first customer engagement. As I\u2019ve observed the ATM and Card Based banking technology space over the past ten years, it\u2019s become clear to me that most of us are focusing on how to work around switches and terminal drivers rather than to improve them. And maybe that is what we should be doing.  Or maybe there is a better way\u2026<\/p>\n\n\n\n

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ISO 20022<\/figcaption><\/figure><\/div>\n\n\n\n

My hypothesis is that adopting a flexible ISO20022 protocol, Web Services based universal ATM Driver would be much more efficient rather than today\u2019s current approaches: Implementing new API or microservices based applications<\/a> that connect directly to the ATM, redundant core interfaces based on stand-alone business services or having to customize the ATM driver every time the bank wants to add a new account type, transaction or changing an existing transaction. I believe that new capabilities could be managed through simple configuration of the ISO message with downstream orchestration and integration services in a common middle tier shared by all channels.<\/p>\n\n\n\n

There has always been a trend in banking software technology\nto abandon old channels or methods of connectivity for new ones, to become more\nefficient, and that is a good thing! But too often banks leave the old methods\nand channels in place, creating an operational and customer experience\nnightmare. Think about it \u2013 today\u2019s smart ATM applications connect to the back\noffice and third-party providers via many different channels. There are business\nservices on the ATM for managing the cash, components and operating systems.\nThere are APIs to connect to authorization and third-party account services providers.\nThere are encryption services to manage RKL\/HSM<\/a>\nand PCI compliance. And there are the good old terminal drivers\/handlers that continue\nto drive most of the basic transactions, encryption, user experiences and other\nlegacy technology. Layer upon layer upon layer.<\/p>\n\n\n\n

Today\u2019s IOT devices bring new focus on this age-old question\nof how best to manage the ATM estate at a bank. Most of the new and exciting experiences\nin commerce\/business today are enabled by network-enabled devices like our iPhones,\nBluetooth headsets, smart-speakers, digital watches and then some. Should we start\nto think of ATMs as IOT devices? Would the industry break the legacy standards\nand approaches to driving and managing ATMs? \nWhat is the better way?<\/p>\n\n\n\n

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Legacy ATM Driving<\/figcaption><\/figure><\/div>\n\n\n\n

Most of the current terminal handling protocols today are based on antiquated ISO 8583 messaging<\/a> standards that rely on brittle, bitmap-based data definitions and inflexible message formats that are a nightmare to update and configure. Why not abandon all of this for a new IOT based ATM software platform connected to the bank\u2019s systems and payment networks via web services and APIs. One based on microservices and like the way we drive all these watches, iPhone apps, voice-based devices? I think it is worth exploring this. Consider the new API based applications that banks are developing in the mobile banking space \u2013 giving customers the means to connect to their bank the way they want to either through the bank\u2019s mobile app or third party FinTech\u2019s. Extending this to reworking the branch experience \u2013 why not connect to shared printers and tablet apps, rework the whole branch flow. That is the way of the future and ATMs should be a part of it. But special consideration must be made for the valuable media (cash, checks, cards) that ATMs work with. How can banks stay PCI compliant and still implement these new IOT like solutions? I think it makes sense to find a better way to do both\u2026<\/p>\n\n\n\n

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ISO 20022 Simplified Yet Extensible<\/figcaption><\/figure><\/div>\n\n\n\n

Consider the ISO20022\nstandard. ISO20022 takes a different approach \u2013 leveraging proven XML type\nweb-services for messaging between applications. Very few legacy ATM vendors\nhave had success with this protocol, but it is taking hold in the payments\nspace particularly in faster payments and POS transaction processing. If you\nreally want to dig in here is a\nwhitepaper on the topic<\/a>. Fintechs and commercial banking vendors are doing creative\nthings with this flexible protocol, utilizing the available payload\/body\ncontent to encapsulate rich data, streamline reconciliation creating downstream\nefficiency. The beauty of this approach is that it could keep the current application\nflows in place, including expensive investments in current bank operating environments\nwithout layering on yet another platform or system. In fact, it might reduce the\nnumber connections considerably. Banks would likely have to  swap out the current business services used\ntoday that drive the various forms of the legacy ISO8583 protocols (such as\n912, NDC, NDC-SMI) but it would be an evolution and open up the bank to start\neliminating redundant services and other custom interfaces that are to the ATM today\n\u2013 eliminating the complexity creating high costs for compliance, upgrades and\nmaintenance.  <\/p>\n\n\n\n

Progressive banks are implementing a smart middle tier of\nmicroservices based applications often using some sort of ESB or API toolkit. Is\nan ISO20022 based protocol consistent with a microservices based multichannel\nplatform or ESB<\/a>? Absolutely, but on the back-end of the terminal driver\/handler\nwith flexibility to connect to and orchestrate with many other bank and third\nparty applications, rather than through direct, redundant connections to the\nATM software. After all, the business logic for orchestrating these new\ntransactions and the interfaces should be in a smart middle tier or legacy\nswitch \u2013 available to all channels for a better banker and customer experience!\n<\/p>\n","protected":false},"excerpt":{"rendered":"

Could an ISO 20022 web-services based ATM Terminal Handler\/Driver reduce costs and accelerate innovation by consolidating applications, connections and platforms. Would bankers, ATM vendors and bank application providers get on board with such a strategy? Do we still need ATM drivers in an IOT world? One idea to help banks remain PCI compliant, maintain legacy connections but become more innovative and extensible with their ATM strategy in an open banking world. <\/p>\n","protected":false},"author":1,"featured_media":29226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,4],"tags":[77,81,21,87,94,95,93],"class_list":["post-29220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-tech","category-technology","tag-api","tag-atm","tag-banking","tag-cloud","tag-iso20022","tag-iso8583","tag-terminal-handler"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2020\/01\/ISO20022.png?fit=433%2C311&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3mX8K-7Bi","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":29096,"url":"https:\/\/www.charanis.com\/blog\/2021\/07\/23\/driving-devices-iso-202022-and-faster-payments\/","url_meta":{"origin":29220,"position":0},"title":"Driving Devices ISO 202022 and Faster Payments","author":"Jimmyc","date":"July 23, 2021","format":false,"excerpt":"I came to NCR to sell a modern ATM driving and transaction processing platform. 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Grammar be damned - the things bankers are doing these days with mobile in the branch just make me think of this ugly bionic man with all kinds of weird\u2026","rel":"","context":"In "Banking Tech"","block_context":{"text":"Banking Tech","link":"https:\/\/www.charanis.com\/blog\/category\/banking-tech\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":154,"url":"https:\/\/www.charanis.com\/blog\/2013\/08\/20\/the-customer-journey-experience-in-banking-hbr-article\/","url_meta":{"origin":29220,"position":2},"title":"The customer journey experience in banking: HBR Article","author":"Jimmyc","date":"August 20, 2013","format":false,"excerpt":"Interesting article in the September issue of the Harvard Business Review: The Truth About Customer Experience by Alex Rawson, Ewan Duncan, and Conor Jones.\u00a0 The focus of the article to me is about how we have often focused on individual customer interactions but fail to look at the end-to-end \u201cjourney\u201d\u2026","rel":"","context":"In "Banking Tech"","block_context":{"text":"Banking Tech","link":"https:\/\/www.charanis.com\/blog\/category\/banking-tech\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2013\/08\/The_Truth_About_Customer_Experience_-_Harvard_Business_Review.jpeg?fit=1168%2C259&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2013\/08\/The_Truth_About_Customer_Experience_-_Harvard_Business_Review.jpeg?fit=1168%2C259&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2013\/08\/The_Truth_About_Customer_Experience_-_Harvard_Business_Review.jpeg?fit=1168%2C259&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2013\/08\/The_Truth_About_Customer_Experience_-_Harvard_Business_Review.jpeg?fit=1168%2C259&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2013\/08\/The_Truth_About_Customer_Experience_-_Harvard_Business_Review.jpeg?fit=1168%2C259&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":24139,"url":"https:\/\/www.charanis.com\/blog\/2015\/01\/23\/new-gig-aci-worldwide\/","url_meta":{"origin":29220,"position":3},"title":"New Gig – ACI Worldwide – Farewell TIS","author":"Jimmyc","date":"January 23, 2015","format":false,"excerpt":"So this is my last day at TIS (though I'm on Vacation) and my journey starts with ACI tomorrow morning with \"Challenger Training\" - then a week of sessions and keynotes and parties at the ACI Worldwide International Sales Conference. \u00a0Big changes for me - going from a small, almost\u2026","rel":"","context":"In "leadership"","block_context":{"text":"leadership","link":"https:\/\/www.charanis.com\/blog\/category\/leadership\/"},"img":{"alt_text":"Kotel","src":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2015\/01\/Isaac-and-Me-under-the-wall1.jpg?fit=640%2C480&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2015\/01\/Isaac-and-Me-under-the-wall1.jpg?fit=640%2C480&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2015\/01\/Isaac-and-Me-under-the-wall1.jpg?fit=640%2C480&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":31021,"url":"https:\/\/www.charanis.com\/blog\/2022\/11\/09\/data-exchange-to-shared-sessions-where-treasury-management-and-digital-banking-wants-to-be-now\/","url_meta":{"origin":29220,"position":4},"title":"Data Exchange to Shared Sessions – Where Treasury Management (and Digital Banking) Wants to Be Now","author":"Jimmyc","date":"November 9, 2022","format":false,"excerpt":"Problem\/Solution Bank's exchanging data with their commercial customers to manage their finances and execute payment transactions: Realtime connections between the companies and their financial institutions so that the information exchange is realtime, integrated, robust and efficient. And dare I say, it just happens: embedded banking. I have the benefit of\u2026","rel":"","context":"In "Banking Tech"","block_context":{"text":"Banking Tech","link":"https:\/\/www.charanis.com\/blog\/category\/banking-tech\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/data-exchange.jpg?fit=1200%2C434&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/data-exchange.jpg?fit=1200%2C434&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/data-exchange.jpg?fit=1200%2C434&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/data-exchange.jpg?fit=1200%2C434&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/data-exchange.jpg?fit=1200%2C434&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":30989,"url":"https:\/\/www.charanis.com\/blog\/2022\/11\/06\/a-year-with-microservices-and-omnichannel-banking\/","url_meta":{"origin":29220,"position":5},"title":"A year with Microservices and Omnichannel Banking","author":"Jimmyc","date":"November 6, 2022","format":false,"excerpt":"Omnichannel - that won\u2019t get a lot of hits on my blog. But Microservices will. The reality is Omnichannel is overused but it is important. And microservices have enabled it. Last year I shifted from enterprise solutions to our digital first solutions - selling the combined solutions between our Channel\u2026","rel":"","context":"In "Banking Tech"","block_context":{"text":"Banking Tech","link":"https:\/\/www.charanis.com\/blog\/category\/banking-tech\/"},"img":{"alt_text":"Jim at NCR","src":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/charanis-NCR-1-scaled.jpeg?fit=900%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/charanis-NCR-1-scaled.jpeg?fit=900%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/charanis-NCR-1-scaled.jpeg?fit=900%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.charanis.com\/blog\/wp-content\/uploads\/2022\/11\/charanis-NCR-1-scaled.jpeg?fit=900%2C1200&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/posts\/29220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/comments?post=29220"}],"version-history":[{"count":2,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/posts\/29220\/revisions"}],"predecessor-version":[{"id":29225,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/posts\/29220\/revisions\/29225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/media\/29226"}],"wp:attachment":[{"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/media?parent=29220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/categories?post=29220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.charanis.com\/blog\/wp-json\/wp\/v2\/tags?post=29220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}