ATM Market Reorganization
LG CNS will sell its automated teller machine (ATM) business unit in five years after it has acquired the division from LG N-Sys in January 2013.
According to industry sources, LG CNS has decided to see its ATM division as part of its restructuring plans and is seeking for its new owner. The ATM unit provides all hardware systems and software solutions to its banking branches as well as basic financial automation devices such as ATM and CD.
On the surface, LG CNS is seeking to sell its financial business division due to its poor performance caused by the decrease in ATM demands. The company announced its plan to establish a second plant in Pyeongtaek, Gyeonggi Province, in May 2014, putting efforts into the ATM business. However, the number of ATMs have dropped rapidly as banks have reduced the number of their branches and internet and smart banking services are increasingly common.
LG CNS manufactured a total of 2,993 units of ATMs in 2016. The figure showed a rapid drop from 7,442 in 2014. The company recorded at 80.3 percent of the monthly average rate of operation at the Pyeongtaek factory, which produces ATMs, in the fourth quarter of 2016.
Currently, two South Korean companies – ATEC and NICE – and one Chinese and one U.S. companies are interested in acquiring the LG CNS’ ATM unit.
Meanwhile, some industry watchers say that LG CNS is planning to sell its ATM business division to focus more on the competence in software rather than hardware. The company supplies panels and operational applications for Pepper, a humanoid robot made by Japan's Softbank. In addition, it plans to supply an AI banking robot consultant “Alpha” that the company developed in collaboration with LG Electronics to Woori Bank.