We expect further growth in our retail banking and retail businesses, based on market analyses. In particular, we anticipate greater growth from solutions and services business than from products.

In banking, in the established financial markets of Western Europe and North America, we expect continued high levels of investment in retail banking, which has established itself as a stable source of income. The investment will be driven, in large part, by ongoing reorganization and modernization of local branch banking. Banks want to improve efficiency and productivity, and are turning to automation and competitive IT service offerings for support. Replacement installations and new installations of ATMs, in particular by off-premises providers, will continue to generate sales growth on the product side.

Replacement of installed ePOS checkout systems has also been the main driver in the retail product business in Western Europe and North America. A surplus of retail space, especially in major urban areas, and associated price competition are the main developments influencing the investment behavior of large retail groups. At the same time, a trend toward opposing business models is on the rise. Discount and “hard discount” models are proving just as successful as customer-led business models that occupy the higher-price segments of the market. What both developments require are the very latest IT solutions and services designed to reduce costs through improved business processes or improved customer service. Automation and self-service solutions play an increasingly important role in both. All in-store solutions are connected to what is often a completely re-designed in-store IT infrastructure, which, in turn, is linked into the financial and logistics information chains of the relevant retail group.

In the world's growth regions of Eastern Europe, Asia, Latin America and increasingly the Middle East, the solutions and services business in the retail and retail banking sectors will continue to grow strongly. We estimate that both sectors will continue to invest to expand and modernize their local operations.