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.