When it comes to designing ATMs, it is all about security. That was the message last week from transaction terminal manufacturer NCR, the firm that has about 90 per cent of the 3,000 or so machines installed in Hong Kong. NCR launched its latest M Series Personas ATMs in the territory, boasting a slew of new safety features. These include temperature and radio frequency sensors designed to detect card readers and cameras placed illegally on the machine, and a next-generation safe made from composite materials to double the strength of existing models deployed in Hong Kong. In fact, two of the latest units have already been deployed in X'ian by China Construction Bank as part of an overall 74-unit contract. However, with Hong Kong's streets statistically among the safest of the world's major cities, the big question is to what extent extra security will sell. NCR's regional deployment director Keith Au Man-hong acknowledged that Hong Kong ranked far ahead of places such as Eastern Europe and Taiwan, where criminals used third-party devices to 'skim' cards - extract the relevant data through card readers - or steal personal identification numbers and even ram machines with vans before dragging them away to offload the banknotes. Such a scenario seems inconceivable in Hong Kong, although Mr Au said that did not preclude the banks from being interested in added security. 'Globally, the trend of card spinning and card trapping is proving popular, and [just] because it is not prevalent in Hong Kong right now does not mean it could never become so,' he said. 'Banks in Hong Kong are relatively conservative, so the idea of more secure ATM sites is likely to appeal. It is one of those situations where they could wait to upgrade, but they also may not want to risk the headlines if they - or their customers - lost money through fraud.' According to NCR, the latest machines to be deployed in Hong Kong can resist 'all known types of fraud'. Solutions such as 'Jitter' - so called because it causes the card to vibrate randomly when it is inserted - make it very difficult for would-be fraudsters to extract card details from unwitting users. But it is also fair to say that the new models on show last week, though fully compatible and upgradeable, did not include some of the more advanced security features that are offered on machines in other overseas deployments made by the company. In Colombia, for example, NCR installed 400 machines for local bank BanCafe in 2002 that feature biometric fingerprint readers to provide security for coffee-growers and encourage them to open accounts. The device obviates the need for cards, which were a magnet for thieves. In Hong Kong, therefore, the key selling point of the new devices is likely to be new functionality and cost efficiency, according to Anita Tsui, Hong Kong sales manager of NCR's financial solutions division. Automated cash deposits - potentially in multicurrency configurations to enable, say, a simultaneous deposit of yuan and Hong Kong dollar notes - and the ability to redispense deposited cash was likely to appeal to banks seeking cost savings associated with lower maintenance costs and reduced reliance on human tellers, Ms Tsui said. The key will be persuading banks that new features will translate into significant cost savings to justify the cost of upgrading existing machines. Growth in the total number of machines in Hong Kong was relatively flat, NCR said, with the territory already well served by regional standards with 363 units per million people as of 2003. NCR machines dating from the 1980s - such as the 5070 - are still going strong in Hong Kong and Macau. But with the older machines running IBM's OS/2 operating system, compared with a version of Windows on the latest machines, NCR will be promoting functions such as on-screen advertising as a revenue generator worth upgrading for. In India, NCR machines deployed by IDBI Bank are configured to sell airline tickets, allowing customers to see schedules and select meal requirements from the terminals. Another potential application is the ability to use cash to pay bills directly, rather than account transfers as is the norm at present.