Skip to main content

ATM Pooling: Solving the ATM Puzzle for Credit Unions


At its inception over 50 years ago, the ATM fired the starting gun for the self-service banking culture and quickly gained steam as a crucial touchpoint that freed account holders from the shackles of business hours and banking at a single branch. Today, a myriad of factors including trends accelerated by a global pandemic, social/political pressures, and rapidly advancing ATM technology are again shifting self-service expectations and changing the framework of the traditional ATM network.

For credit unions, the recent changes surrounding the ATM has created a quandary in regard to their ATM network strategy. On one hand, cash usage decline and scares of a “cashless society” have put a microscope on escalating ATM costs, usage, and regulatory compliance for credit unions, and understandably so. But, simultaneously, access to cash remains relevant, accounting for roughly 20% of all transactions in the U.S., and the pressure for credit unions to serve even the smallest of communities remains constant. All while new ATM technologies continue to add functionality and deeper account access for consumers, giving way to hybrid or fully self-service branch models.

So, to sum it up - If you reduce or stop investment into your ATM fleet, you risk a critical self-service channel becoming obsolete and your institution failing to effectively serve your members and community, likely costing you accounts and goodwill. Conversely, if you continue to invest into your ATM fleet to meet the rising demand for self-service, the cost is high and the return is low, in other words, putting more capital into a loss leader. So, where do we go from here?

Shared Infrastructure:

Across the globe, credit unions faced with this same dilemma have turned to a solution commonly referred to as “ATM Pooling”, a strategy that delivers operational cost savings while expanding the ATM footprint and simplifying the management and security of the ATM channel as a whole.

By definition, ATM pooling involves transferring ATM ownership and operational responsibility to an expert third-party, resulting in significant cost reduction for the individual financial institution, and allowing them to continue serving consumers in locations where low demand would otherwise render an ATM uneconomical.

Prime examples of the success of this strategy are the Geldmaat Network in the Netherlands, and Batopin in Belgium. In both cases, several of the country’s largest banks have joined forces through shared ATM infrastructure aimed at optimizing the network and providing a safe and efficient service to their account holders. In short, these credit unions are less attached to the headache and heartache of ATM ownership and operations, and more interested in the efficiency and performance of the shared infrastructure.

The U.S. ATM Pooling Blueprint:

In the U.S., ATM pooling might not yet be on the radar of our country’s largest credit unions as it is in Europe, but organizations such as credit union associations, chapters, leagues, and other member-based advocate programs create opportunity in the ATM pooling space at the state and regional level. With widespread reach and member bases typically consisting of hundreds of credit unions, opening a shared ATM infrastructure program would create significant cost savings, network optimization, and operational efficiencies for participating credit unions, while passing along convenience to their account holders.

Dolphin Debit (Euronet Worldwide’s North American ATM Services Division) has been “pooling” ATMs since 2005. Currently, the Dolphin ATM Alliance consists of 2,000+ ATMs spread throughout the U.S. With a blueprint already in place, this is a shared infrastructure service model that is poised to rival the ATM pooling initiatives of our foreign banking colleagues.

Service models like the Dolphin ATM Alliance combine the operational simplicity and cost cutting elements of a pure play end-to-end ATM outsourcing solution with the “pooling” effect of shared ATM infrastructure. A combination that effectively solves the ATM puzzle for credit unions: less capital investment into the ATM fleet, streamlined ATM operations, an expanded ATM footprint, and seamless adaptation to everchanging regulatory compliance requirements and rapidly advancing ATM technology.

Joe Woods, CUDE | SVP, Marketing & Partnerships

Dolphin Debit Access, LLC | 1340 Rayford Park Rd., Spring, TX 77386

(M) 614-378-0367

Comments

Popular posts from this blog

NCOFCU Newsletter

The Bucket Coach is a financial advice book designed by Fire Services Credit Union, Tronto, Canada. and written exclusively for Fire Fighters It's a practical guide for household financial management, including investments, credit and mortgages, and retirement. Developed with contributions from Fire Fighters," NCOFCU Newsletter : " Kevin Connolly Chief Executive Officer    Fire Services Credit Union Phone: 416-440-1294 ext 301  Toll Free: 1-866-833-3285 E-mail:  kevin@firecreditunion.ca 1997 Avenue Rd Toronto, ON M5M 4A3 

CUNorthwest Todd A. Powell Award is SFCU CEO Gayle Furness.

Spokane Firefighters Credit Union Big Enough to Serve. Small Enough to Care. This year’s recipient of the CUNorthwest Todd A. Powell Award is SFCU CEO Gayle Furness. Like Todd, Gayle has been instrumental in the growth, as well as the safety and soundness, of the credit union. Congrats to Gayle for living up to the standard that Todd created for our organization and the greater credit union community. __ ________________________________ Check out NCOFCU's additional features: First Responder Credit Union Academy Podcasts YouTube Mini's Blog Job Board

The Shrinking Pool of Small Credit Unions: Why It Matters & What We Can Do About It. - Henry Meier, Esq.

  Henry Meier, Esq. Henry Meier is the former General Counsel of the New York Credit Union Association, where he authored the popular New York State of Mind blog. He now provides legal advice to credit unions on a broad range of legal, regulatory and legislative issues. He can be reached at (518) 223-5126 or via email at  henrymeieresq@outlook.com . For as long as I’ve been around the industry, I’ve heard concerns about the demise of the small credit union. But I’ve come to realize it’s a lot like the weather: Everyone talks about it, but no one does anything about it. This is unfortunate. We need credit unions of all shapes and sizes to survive, and if we don’t take action soon, it will be too late.  Fortunately, there are steps the industry can take to potentially decrease the rate at which small credit unions are disappearing by making it viable for credit unions to survive by getting larger credit unions interested in making the necessary investments to keep the sma...

What Are Your Plans -As Government Shutdown Continues, Credit Unions Expand Offers of Assistance

BILOXI, Miss.— With the federal government shutdown now entering its second week, an increasing number of credit unions across the country are offering relief and financial assistance. All indications are the shutdown is no closer to ending than it has been since it began on Oct. 1. While the House has passsed a continuing resolution (CR) to fund government operations in the short term, the Senate remains at an impasse, even as it has scheduled a vote for today. In addition to the earlier assistance reported by the CU Daily  here , the latest pledges to support members include: • In Biloxi, Miss., Keesler FCU said it is offering paycheck relief for all eligible federal employees affected by the shutdown and will advance the amount of direct deposit paychecks for eligible members during the shutdown for up to 90 days. There is no cost or fee to enroll in the program. • In Nebraska, Cobalt Credit Union is offering furloughed members loans of up to $5,000 with no fees or interest...

Sunday Reading - FIRE, 101 - “financial independence, retire early,”

  Retiring at 30     FIRE, 101 Most US workers aim to retire around age 65—but for many followers of the FIRE movement, which stands for “ financial independence, retire early ,” that’s not the case. FIRE followers, who range from low- to high-income workers, typically prioritize high savings rates, relatively frugal living, and aggressive investing strategies in an effort to work less and enjoy life more in the long-term ( see five distinct approaches ). While many proponents argue that the movement is more of a mindset about achieving financial freedom than any ...