Skip to main content

Planning & Budgeting for your ATM-ITM Program

The numbers show that there are roughly half a million ATMs throughout the United States. And an estimated 30% or more of those ATMs will need to be replaced in 2024. Two of the largest manufacturers have product lines that are sunsetting or expiring next year. Many financial institutions have models in operation that will be expiring.

Budget and planning conversations are rapidly approaching as we head toward the Fall.  This budget season is incredibly important for the success of your future ATM or ITM fleet. Whether you have two or 200 units the coming planning process will be important as your ATMs are an extension of your branch and a lifeline for cardholders that need cash and make deposits after hours. In addition to the typical ATM use, now is a good time to consider ITM technology that can further enhance the cardholder experience and enable even more self-service. Not all ATMs need to be ITMs but if you have to replace a large portion of your fleet, it’s an opportunity to open discussions regarding the technology.

There are several key points or concepts to consider as you begin planning.

The first is the features and benefits of your current units.  What types of transactions do your ATMs perform today? What are cardholders asking for or better yet, what transactions can be reduced at your teller line by adding them to the ATM? There are a few enhancements you can make without taking the leap to the ITM.  Deposit automation and denomination selection are two such features. The average transaction cost at an ATM is $0.70. The average cost of a teller transaction is $4.50. You can save staff time and reduce your operational expenses by expanding the transactions available on your new units.

The second key point to consider is the make and model you choose to deploy. You should be working with a partner that is equipment neutral. Meaning they can provide any make and model of ATM for your program. Most of the providers across the country are only capable of providing ATMs from one manufacturer. This dramatically limits their capabilities and your potential for success.

The third and final point is the financial portion of the project. ATMs and ITMs require a significant amount of capital. There is no reason you should allocate so much money on a box that is going to require multiple software and hardware upgrades as well as potential compliance changes during its usable life.  Many software and hardware upgrades require thousands of dollars in additional capital. Also, consider all the different vendors you need to contract with to make the ATM operational. There are organizations that can consolidate your vendors and dramatically reduce your operating costs while providing a fixed, cost-effective number for your ATM and ITM fleet. 

As always, be sure to consult your state league or association. They have many resources and will provide you with contacts and an introduction to a partner that can offer the best solution.

Comments

Post a Comment

Please no profanity or political 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 
Post a Comment
Read Complete Article HERE>»

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
Post a Comment
Read Complete Article HERE>»

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...
Post a Comment
Read Complete Article HERE>»

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...
Post a Comment
Read Complete Article HERE>»

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 ...
Post a Comment
Read Complete Article HERE>»