NCR Corporation, traditionally known as an automated teller machine (ATM) provider, is shifting from hardware to focus on software and services, including its digital banking platform. The company’s goal is for 80% of its revenue to come from software and services.

Seventy-three percent of NCR’s 2021 revenue was from services and software, compared with 72% in fiscal year 2020, according to Tuesday’s earnings call.

It’s a sign of the times and a major shift for the Atlanta-based company, which was founded in 1884 as a cash register business and now provides hardware-based solutions such as ATMs, self-service kiosks, point-of-sale terminals, and barcode scanners in the financial services, hospitality and retail spaces.

While NCR saw an increase in demand for its hardware solutions, the company’s services division is also growing, CFO Tim Oliver said during the call.

“We continue to successfully replace our one-time revenue that was traditionally recognized with the sale of ATM hardware with more durable, predictable and valuable software and services revenue streams,” Oliver said.

NCR provides a digital banking platform, competing with Access Softek, Alkami Technology, Apiture, Backbase, MEA Financials, MX and Q2 as non-core digital banking solution providers, according to Aite-Novarica Group.

Digital banking revenue in 2021 was up 9% year over year at $133 million, compared with overall banking revenue of $1.1 billion. In the fourth quarter, digital banking registered users were up 3% YoY at 25.3 million and down 5% from 26.5 million users, sequentially. The company did not break expenses down, so no figures were available for technology spend.

NCR in February 2020 acquired Terafina, a solution provider for customer account opening and onboarding across digital, branch and call center channels. The company provides two primary digital banking solutions: NCR DI, which targets smaller banks and credit unions looking, and D3 which targets larger and regional FIs, according to Aite-Novarica Group.

The digital banking platform continues to have positive momentum, said Mike Hayford, NCR president and CEO.

“In the fourth quarter, digital banking had 37 renewals, four new logo deals and three business banking wins, all positive drivers of growth,” Hayford said. “Demand has been strong for our digital banking platform, as well as for our online digital account opening, which we obtained through the acquisition of Terafina.”

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