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.
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