Findings Reveal Who the Real ATM Users Are

NORTH CANTON, Ohio, Nov. 12 /PRNewswire-FirstCall/ -- Diebold, Incorporated (NYSE: DBD) announced today the publication of new research on the next-generation retail banking customer. The research, titled "Identifying the Next-Generation Retail Banking Customer: New demands, interactions, and expectations on the near-term horizon," was conducted by Perceptive Services of Austin, Texas, and commissioned by Diebold.

Designed to provide insight for financial institutions undergoing branch transformation, the information defines who the industry considers a "next- generation" customer, factors that impact their behaviors and the possible implications of each on the current retail banking environment and proposed service delivery. The analysis considers three distinct demographic groups in its findings: baby boomers (age 43 and older), Generation X (ages 26-42) and Generation Y (ages 18-25).

"We want to share this insight and information with our customers to assist them in crafting their branch transformation strategy for improved success rates," said Diebold's Ken Justice, vice president, global self- service marketing and management. "Ongoing research and exploration into consumer behavior within the retail banking channel is critical to our development of products and services. By understanding who the next-generation consumers are, we can design equipment to meet their needs."

Specifically, study results reveal that automated teller machine (ATM) usage continues to find strong support across generations. In fact, the study shows that aside from withdrawing cash, all generations unilaterally rate viewing account balances, making deposits and transferring funds between accounts as their three most-preferred ATM services. Meanwhile, all segments tend to prefer ATM deposits versus making one via online from home. The majority of members from all generations surveyed also support the potential to use the ATM to scan checks directly over making traditional, envelope-based deposits.

Research insights were drawn from a variety of sources, including primary data from a cross-section of retail bank customers' tendencies and preferences; secondary research from existing literature; and interviews with leading banking strategists in the retail sector.

According to Justice, the combination of sources helps provide relevant, yet diverse information from which correlations can be drawn. For instance, such links confirm continued acceptance of the ATM as a preferred alternative to teller banking. More detailed results show that consumers in the baby boomer segment are relatively more interested in using on-premise ATMs over off-site ATMs. This finding contrasts to that of the younger Gen Y and Gen X segments who indicated similar preferences for using both on- and off-site ATMs for assorted needs.

"Part of a consistent pattern echoed throughout the study [reveals]...the younger generations were generally more accepting of a variety of uses of the ATM," explained survey author Tom Thornton. "For example, the study indicated that the youngest segments of Gen Y were more open to the possibility of using ATMs to conduct wire transfers as a vehicle for topping off prepaid gift cards."

Study findings also illustrate that the branch ATM offers a strong alternative to in-lobby PC terminals or to interaction with tellers via closed-circuit monitors, and is generally preferred by customers of all generations.

However, one generation in particular showed significantly stronger interest in the ATM over the teller. "Nowhere was the opposition to wait-time more acute than in the younger Gen Y segment," Thornton said. "While older, baby boomers are willing to wait somewhat longer to gain a personal interaction with a teller, Gen Y customers are more than happy to forego the line in favor of the ATM."

Gen Y members, who grew up with the PC and Internet and are oriented more to parallel information processing and multi-tasking than their older counterparts, can appreciate a highly flexible and easy-to-use ATM interface. Consider the 19-year-old who can simultaneously juggle a telephone, social Web site and music stream in real time, or the young professional who couldn't imagine operating a phone if it required both hands. Customization functions, such as check and cash deposit automation, one-to-one marketing ability and capability to communicate new, retail banking services in real time, further enhance an ATM's appeal to young bank users.

"Next-generation customers will expect their interfaces to be smart in the sense that they predict user actions and maintain a history of interactions with specific users so they essentially learn what users are interested in," Thornton explained. "Truly smart banking interfaces will support both user customization and targeted personalization, key factors in meeting the self- expression needs and the time sensitivity that are hallmarks of the next- generation banking customer."

These and other research results are available in a position paper in Diebold's press kit for the 2007 BAI Retail Delivery Conference and Expo. This research, according to Justice, enables industry thought leaders to determine the most appropriate and effective solutions to emerging industry trends.

"The changing banking habits of baby boomers and younger generations will have a profound affect on how financial institutions approach retail banking," Justice explained. "Through this research, we believe Diebold can assist customers in preparing for and adjusting to these changes, therefore strengthening the retail banking industry as a whole."

For more information about Diebold, please visit booth #1220 on the show floor, or visit Diebold online at www.diebold.com.

About Diebold

Diebold, Incorporated is a global leader in providing integrated self- service delivery and security systems and services. Diebold employs more than 15,000 associates with representation in nearly 90 countries worldwide and is headquartered in North Canton, Ohio, USA. Diebold reported revenue of $2.9 billion in 2006 and is publicly traded on the New York Stock Exchange under the symbol "DBD." For more information, visit the company's Web site at www.diebold.com.

SOURCE: Diebold, Incorporated

CONTACT: Media Relations, Joe Richardson, +1-330-490-5562,
richarj2@diebold.com, or Investor Relations, Jennifer Bako, +1-330-490-6318,
bakoj@diebold.com, both of Diebold, Incorporated
Web site: http://www.diebold.com