# KAL makes ATMs futureproof with nexo standards protocols
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-01-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: ATM Software Solutions for Banks | KAL Case Study
Meta Description: Discover how KAL's software suite helps leading banks like Českáspořitelna streamline ATM management, cut costs and enhance customer service.
URL: https://financedigest.com/kal-makes-atms-futureproof-with-nexo-standards-protocolshtml

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**Introduction**

KAL is a world-leading ATM software company that specializes in solutions for bank ATMs, self-service kiosks and bank branch networks. Its multivendor Kalignite Software Suite enables ATM hardware, software and services sourced from multiple vendors to work together perfectly so banks regain control of their ATM networks, reducing costs, increasing functionality and improving customer service.

KAL software is the preferred ATM software and ATM management solution for many of the [world’s leading](https://www.financedigest.com/arora-project-have-experienced-out-of-this-world-returns-with-their-lead-generation.html "Arora Project have experienced out-of-this-world returns with their lead generation") banks, including Citibank, UniCredit, ING, China Construction Bank and Českáspořitelna (Česká), a member of the Erste Group. It is installed and [supported in more than 80 countries around](https://www.financedigest.com/engineering-pipe-hanger-and-support-market-estimates-the-to-expand-at-around-4-8-cagr-from-2021-to-2031.html "Engineering Pipe Hanger and Support Market Estimates The To Expand At Around 4.8% CAGR from 2021 to 2031") the world and is certified in over 30 languages. KAL ATM Software supports 40 ATM [manufacturers and over 250 different ATM model types](https://www.financedigest.com/global-automotive-fuel-nozzle-market-by-manufacturers-countries-type-and-application-forecast-to-2031.html "Global Automotive Fuel Nozzle Market By Manufacturers, Countries, Type And Application, Forecast To 2031"), including NCR, Diebold, and Wincor Nixdorf. There are over 300,000 ATMs running KAL ATM Software today.

KAL began providing its ATM software to Česká in 2016. Česká is the biggest bank in the Czech Republic, with almost five million customers and assets of over $45 billion.Česká provides its customers with the broadest range of [banking services](https://www.financedigest.com/the-gmp-cell-banking-service-market.html "The GMP Cell Banking Service Market") in the Czech Republic via a branch network of over 550 and more than 1,600 ATMs.

This case study explores how KAL software answered Česká’s requirement to improve the management of the largest ATM network in the Czech Republic – while continuing to [innovate and launch new products and services quickly into the market](https://www.financedigest.com/the-microalgae-based-product-market-to-grow-based-on-instilled-innovation.html "The Microalgae Based Product Market To Grow Based On Instilled Innovation"). The case study also addresses how KAL software and nexo standards helped Česká to fulfil its strategy to create a single environment and support for its clients via ATMs, and an online platform that provides consultancy and other [services beyond](https://www.financedigest.com/beyond-the-hype-metaverse-and-the-future-of-financial-services.html "Beyond the hype – metaverse and the future of financial services ") standard internet banking.

**The challenge**

In recent years, Česká decided it had to increase the transaction capability of its ATMs to deliver more efficient [services to its customers and reduce](https://www.financedigest.com/four-tips-to-help-reduce-employee-ghosting-in-financial-services.html "Four tips to help reduce employee ghosting in financial services") operating costs. Its ATMs, however, were supported by the bank’s outdated host computer system, which offered limited functionality and little flexibility.

Česká chose to decommission the host system gradually, transferring [functionality to a new terminal handler system](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-functional-brain-imaging-systems-market.html "Innovation at periodic intervals to upscale the Functional Brain Imaging Systems Market"). At the same time, Česká wanted to switch to a new, open [payments acceptance standard](https://www.financedigest.com/instant-payments-and-the-need-for-standardization.html "Instant payments and the need for standardization") that was forward-looking and future-proofed. Using an open standard would also significantly increase Česká’s options to deliver new [innovative services](https://www.financedigest.com/accelerating-financial-services-innovation-with-the-promise-of-data-mesh.html "Accelerating financial services innovation with the promise of data mesh ") to the ATM, while ensuring interoperability with all other stakeholders within the payments ecosystem.

**The solution**

The answer for Česká was twofold.

Firstly, it opted for the KAL ATM Software Suite including the Kalignite Terminal Handler (KTH). KTH gives banks a new option within the datacentre when replacing legacy host [systems or extending current](https://www.financedigest.com/ventricular-restoration-systems-market-development-history-current-scenario-industry-insights-2030.html "Ventricular Restoration Systems Market Development History, Current Scenario & Industry Insights 2030") host capabilities.

KTH is used as a front-end to a bank’s host system on the ATM channel. This meant that it could be [deployed by Česká to offload a significant amount of work](https://www.financedigest.com/deployed-raises-4m-to-redefine-how-statements-of-work-are-created-and-projects-are-planned.html "Deployed raises M to redefine how Statements Of Work are created and projects are planned") that the old ATM host system was doing. KTH is also highly customizable, allowing Česká to deploy new, [innovative features to the market](https://www.financedigest.com/the-binocular-microscope-market-to-step-up-the-innovative-digitization-ladder.html "The Binocular Microscope Market to step up the innovative digitization ladder") much faster than was previously possible. What’s more, KTH can connect the ATMs to many bank back office systems using multiple messaging protocols at the same time.

This is where the second part of the solution came in – nexo standards.

nexo standards is a global association that develops messaging protocols and specifications which adhere to ISO 20022 standards and enable fast, interoperable and borderless [payment acceptance by standardizing the exchange of payment acceptance data between merchants](https://www.financedigest.com/embedded-payments-for-b2b-merchants-and-marketplaces-4-considerations.html "Embedded payments for B2B merchants and marketplaces: 4 considerations"), acquirers, payment service providers and other payment stakeholders.

KAL, along with a number of other key ATM nexo standards members, jointly developed the nexo standards ATM Messaging Protocol. The protocol is an extension of the ISO 20022 [global standard for host-to-host communication and is the first universal standardization initiative related to the ATM transaction and management](https://www.financedigest.com/energy-management-system-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2025.html "Energy Management System Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2025") domain.

The ATM Messaging Protocol from nexo standards works by ensuring that the ATM message [set focuses on the communication between an ATM and host systems](https://www.financedigest.com/health-care-information-systems-market-growth-set-to-surge-significantly-during-2018-2026.html "Health Care Information Systems Market Growth Set to Surge Significantly during 2018 – 2026"). Under the nexo standards protocol, the ATM’s messages cover extensive transaction processing, security, ATM inventory, [state of health and terminal](https://www.financedigest.com/australian-state-balks-at-energy-companys-request-for-help-with-lng-import-terminal.html "Australian state balks at energy company’s request for help with LNG import terminal") management. The fact that the nexo standards protocol is derived from ISO 20022 made it even more valuable for Česká because it allows for [future developments](https://www.financedigest.com/chromoendoscopy-agents-market-2031-report-details-the-future-development-manufacturers-trends-share-size-and-forecast.html "Chromoendoscopy Agents Market 2031 Report Details the Future Development, Manufacturers, Trends, Share, Size and Forecast") in the transaction value chain worldwide.

The nexo ATM Messaging Protocol was integrated into the KAL ATM Software to standardize the communication between the ATM and KTH. The role of KTH is to convert the nexo message it receives from the ATM into the messaging format required by the other host / central systems at Česká that support the ATMs.

**The benefits**

Using the nexo standard ATM Messaging Protocol provides Česká with many benefits, including:

**New services**

- The nexo standards protocol significantly increases the bank’s ability to deliver new and innovative services to its ATMs. For example, nexo standards’ ATM Protocol gives Česká the option to support contactless card transactions and pre-staged transactions.

[**Lower implementation costs**](https://www.financedigest.com/companies-cost-inflation-is-slowing-but-shoppers-may-wait-for-lower-prices.html "Companies’ cost inflation is slowing but shoppers may wait for lower prices")

- Česká has reduced its costs by using a single, common standard protocol, rather than one of the hundreds of bank-specific, vendor-specific and country-specific protocols currently in use around the world. Unlike these legacy standards, nexo [standards provides open messaging protocols that allow](https://www.financedigest.com/esg-innovation-allowing-everyone-to-meet-the-standard.html "ESG innovation: Allowing everyone to meet the standard") better interoperability between ATMs and Česká’s host computers.

**Easy implementation**

- The nexo standard protocol uses XML over HTTPS which is simpler and quicker to implement than today’s non-secure binary protocols. This resulted in shorter implementation timescales for Česká when updating its ATMs.

The ability to offer the implementation of nexo standards to its customers also generates a variety of benefits for KAL:

- In a very competitive marketplace for ATM software, nexo standards enables KAL to add significant [value to its customers](https://www.financedigest.com/cracking-the-code-of-customers-future-value-in-retail.html "Cracking the code of customers’ future value in retail"), beyond what is readily achievable via other messaging protocols such as vendor-specific and proprietary formats used by many banks.
- The reduced implementation timescales realized with nexo standards enables KAL to complete deployments on both local and [global scale](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") projects significantly faster and more efficiently than before.
- With nexo standards, KAL now has a universally consistent messaging foundation that can be applied around the world, regardless of the domestic specificities of each [future project](https://www.financedigest.com/pediatric-hiv-infection-treatment-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Pediatric HIV Infection Treatment Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends").


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