NCR CASE STUDY:Extraco Banks

Extraco Banks is a community bank which first started life as

Exporters and Traders Compress and Warehouse Company in

Waco on July 12, 1902. Today, it has evolved into the largest

and most comprehensive independent financial institution

headquartered in central Texas.

With assets exceeding $1.2 billion, Extraco has 135,000

customers, 16 branches and, to date, a network of 30 ATMs

(18 of which are intelligent deposit machines).

It offers a wide variety of traditional consumer and

commercial banking services including trust, insurance,

mortgage, financial services and technology across 13 central

Texas communities. A highly respected and valued community

institution, it employs 390 staff and participates in hundreds

of volunteer leadership roles. Additionally, Extraco now offers

banking consulting services featuring it’s patent pending

SWARM Banking® methodology.

After nearly a 30-year partnership with one of NCR’s leading

competitors, Extraco realized that in order to meet its self-

service strategy, it would have to evaluate all options available

in the industry.

A key part of Extraco’s self-service strategy is to deliver to

customers the opportunity to bank where, when and how

they wish—which reinforces the company’s corporate value

of “Simple, Fast and Fun.”

Previously only offering cash dispensing through its ATM

network, Extraco knew it needed the advanced functionality

of intelligent deposit machines in order to successfully

fulfill this strategy. Additionally, Extraco was in the process

of restructuring its branch model, which included the

reduction of branch hours to create staff and cost savings

efficiencies. The transition to intelligent deposit self-service

ATMs therefore needed to support this new model without

sacrificing brand image and the hard-earned, valued

relationships already established with its customers.

Other key requirements included:

• The opportunity to advertise additional products and

services

• The capability to add transaction preferences and market

to non-account holders

• The power to attract and capture new customer

relationships

• The ability to offer outstanding availability, reliability and

ease-of-use

The customer The challenge

Key HighlightsIndustry/Market

Retail, small business and commercial banking

Challenge:

To introduce Extraco’s customers to banking when,

where and how they want with an unrivaled level of

availability, usability and security

Solution:

A total end-to-end self-service solution, with

NCR SelfServ Intelligent Deposit ATMs perfectly

complemented by NCR’s market-leading APTRA™

software and support services

Results:

• 24x7 deposit capability

• Extraco’s 11 highest performing NCR SelfServ 38s,

called iTMs, average over 15,000 deposit transactions

a month. The remaining six iTMs allow Extraco to

either serve areas without the expense of a brick

and mortar or reduce branch hours while enhancing

customer access to deposit and withdrawal services.

• Customers have experienced deposits to be 3x faster

on the new iTMs compared to a typical drive-thru

transaction

• Customer confidence is growing; large checks in

excess of $125,000 are being deposited

NCR offered Extraco the perfect platform to deliver its

self-service strategy. In fact, NCR was unique in that, unlike

its competitors, it guaranteed a total end-to-end solution—

offering hardware, unrivalled APTRA software and a complete

installation service as well as the essential support structures

and check imaging and processing expertise to help facilitate

the transition to intelligent deposit self-service.

As a result, Extraco made the NCR SelfServ 38 its ATM of

choice across its branch network, combining cash dispense,

along with intelligent cash and check deposit for the

ultimate in customer convenience. In 2011, Extraco added

the SelfServ 34 in an attractive kiosk to service offsite

locations.

NCR’s Professional Service Consultants teamed up with an

Extraco taskforce and together the two groups developed

a rollout plan for the new ATMs. Extraco branded and

trademarked their machines, renaming them “iTMs” to

distinguish them from their traditional cash dispensing ATMs.

Marketing opportunities were also maximized by wrapping

the ATM, designing custom transaction screens, and creating

custom advertising campaigns that play between transactions.

Lastly, Extraco created banners, a website promotion and an

email blast to raise customer awareness of the new ATM’s

functionality.

The intuitive design of NCR SelfServ ATMs, which offer

outstanding ease-of-use (a key requirement for the bank),

entices uptake by making transactions simple, fast and fun—

perfectly in keeping with Extraco’s values.

And, while NCR SelfServ ATMs makes things simple for its

customers, additional NCR products and services also make

things straightforward for Extraco.

• APTRA Passport for ATM—electronically submits check

images and data to Extraco’s back office for immediate

processing.

• APTRA Edge—leverages the latest web technologies and

provides an open and flexible architecture. APTRA Edge is

designed for financial institutions who desire a state-of-the-

art, innovative software solution for their ATM channel.

• Solidcore Suite for APTRA—provides proactive protection

against security threats and risks.

• NCR Incident Management—allows enhanced uptime

by quickly identifying problems and dispatching service

engineers to guarantee ATMs are performing at optimum levels.

Extraco’s first intelligent deposit NCR SelfServ 38 ATM was

installed at Waco, Texas in 2009. The response from customers

has been so positive that it prompted the order of additional

NCR SelfServ 38 ATMs. Extraco now averages over 15,500

deposit items per month of which it receives over $1 million in

cash deposits per month. Extraco is ecstatic to see this volume

of activity!

The convenience of making an ATM cash/check deposit,

together with the check image quality and ease of use of NCR

SelfServ ATMs, has set Extraco apart from its competitors and

driven new customers to the bank, with many preferring the

experience of a NCR SelfServ ATM to that of a drive-in teller—

as customers testify:

“The deposit for cheques is awesome!”

“I really appreciate the immediate update of the account

balance as well as the photocopy of each check that is

deposited.”

Extraco has experienced high customer acceptance and

confidence in the new iTMs, large checks in excess of $45,000

are being deposited. One customer was confident enough to

deposit a $125,000 check.

This kind of positive feedback, together with the guarantee

of depository banking services 24x7, has resulted in a 10%

increase in transaction migration from the teller to the iTMs

enabling a reduction in bank branch costs. Customers have

experienced deposit transactions to be 3x faster on the new

iATMs, On average, 3 checks can be deposited in under a

minute versus previous drive-up transaction time of 3 and a

half minutes.

The addition of the NCR SelfServ ATMs supported Extraco’s

transition to reduced lobby hours with minimal impact on

customers. In fact, by adding the new NCR SelfServ ATM

network, Extraco actually expanded its service hours to 24x7

for those locations. Extraco have also achieved additional

benefits of enhanced customer service and reduced branch

costs.

Intelligent Deposit ATMs continue to positively affect Extraco,

from the possible expansion of its customer base to creating

another opportunity for a superior customer experience—

not only offering consumers banking when, where and how

they want, but exceeding the company’s and its customers’

expectations at the same time.

The solution The solution benefits

WHY NCR?

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www.ncr.com

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© 2010 NCR Corporation Patents Pending EB10303-0212

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