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Diebold (NYSE: DBD) is one of the largest manufacturers of ATM machines. The company also makes security products such as vaults, alarms, and safes, and has an election systems business that is based in Brazil. The company sells most of its products to banks, financial institutions, government agencies, and public libraries among others. In 2009, the company generated $2.7 billion in revenue and $29 million in net income.[1]

Since 1995, the number of Americans that use ATM cards has jumped from 35 to over 65 percent. Also, rapid economic growth in China, Latin America and the Middle East has lead to expansion of the banking industry in those countries. The rapid growth of the banking industries in India and China as well as a movement towards self-service technology (ATMs, internet banking) have provided a quickly growing market for Diebold's products.

Company Overview


Diebold manufactures and sells three kinds of products:


  • Self-Service Hardware - includes Automated Teller Machines (ATMs)-electronic terminals that let a person withdraw/deposit money and check their balance without the help of a bank teller. The company's machines have technology that make them cash-checking, bulk cash recyclers, and bulk check deposit machines.
  • Self-Service Software - includes software that processes events and transactions.
  • Self-Service Support and Managed Services - includes analysis and consulting to monitoring and repair. Services includes installation and ongoing maintenance of products.


  • Physical Security and Facility Products - includes in-store bank branches, pneumatic tube systems for drive-up lanes, vaults, safes, depositories, bullet-resistive items,and under-counter equipment.
  • Electronic Security - includes digital surveillance, access control systems, biometric technologies, alarms, and remote monitoring diagnostics
  • Monitoring and Services - includes fire and energy management, and remote video management and storage.

Election Systems

The company, through its wholly-owned subsidiary Procomp Industria Eletronica LTDA (in Brazil), is a provider of voting equipment and related products and services. Diebold provides elections equipment, networking, tabulation and diagnostic software development, training, support and maintenance.


Diebold sells its products directly to its consumers, which include:

  • Banks
  • Financial Institutions
  • Public Libraries
  • Government Agencies
  • Utilities
  • Retail Outlets

Business Segments[3]

Diebold is divided into three segments:

  • Diebold North America (DNA) sells Diebold products in North America.
  • Diebold International (DI) sells Diebold products throughout the rest of the world.
  • Electronic Systems & Other (ES & Other) manufactures and sells election systems.

Business Growth

FY 2009 (ended December 31, 2009)[1]

  • Net sales fell 12% to $2.7 billion. Financial self-service revenue decreased by 7.7% due to negative currency impacts. EMEA sales fell due to a decrease in China related to the Beijing Summer Olympics that did no reoccur in 2009.
  • Net income fell 71% to $26 million.

Trends and Forces

Increased Demand for ATM's Means Increased Business for Diebold

ATM demand in India and China has increased in the past few years, fueled by the regions' prosperity. Increased buying power leads to growth in the financial services market. Relatively large portions of their populations still have limited access to banks, meaning commercial banks have an incentive to increase their presence. ATM machines are an effective way of increasing their presence without the cost of constructing an entire building and hiring staff. The number of ATMs in China and India have been growing at 705 CAGR since 2000.[4]

Self-Service Movement

Self-Service has expanded beyond just ATMs and gas stations. Advancing technology has allowed consumers to carry out more transactions on their own. Diebold is setting itself up to take advantage of this trend through securing five U.S. patents on technology that will connect mobile phones to ATMs. This new technology will let consumers find the nearest ATM and make withdrawals and wire transfers through their phones.

Proliferation of Identity Theft

Identity theft is a constant threat to consumers throughout the country. Since credit card companies are making it harder to steal customer information, identity thieves have turned to skimming PIN numbers from ATM machines in order to gain access to others' bank accounts. Current estimates place average loss per ATM at $900 and $2.75 billion in total losses due to identity theft. Companies that manufacture ATMs thus have an interest in constantly upgrading their technology in order to deal with the threat of skimmers. However, more advanced technology tends to make the ATMs more expensive, so in order to keep selling as many as possible, the same producers cannot make the machines too expensive. Diebold has addressed this issue by developing new skimming detection technology (which usually costs between $1,200 and $1,500 per ATM) that is included in its new card readers at no extra charge


ATM Competitors

  • NCR is a global technology company that produces ATM machines as well as self check-out machines for supermarkets.
  • Triton is a subsidiary of Dover (DOV), a conglomerate that owns a portfolio of manufacturing companies. Its manufactures products for the industrial products, engineered systems, fluid and electronic technologies markets.
  • Wincor-Nixdorf provides Information Technology products to the banking and retail sectors. The company produces ATMs and automated deposit machines for banks as well as software for Internet and telephone banking.

Voting Machine Competitor

Diebold provides elections systems products. Competition in this market is limited and based upon technology pre-qualification demonstrations to the government. Due to the technology investment required in elections systems, barriers to entry in this market are high.[5]

  • ES&S (Election Systems and Software) has installed a total of 170,000 machines worldwide and played a part in 30,000 elections worldwide. The company produces both paper and touch screen voting machines.


  1. 1.0 1.1 DBD 2009 10-K "Selected Financial Data" pg. 18
  2. DBD 2009 10-K "Product and Service Solutions" pg. 3-4
  3. DBD 2009 10-K "Segment Information" pg. 86
  4. Banking Blog "Can the villagers spell A-T-M?" 2 March 2009
  5. DBD 2009 10-K "Competition" pg. 5-6
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