By Joe Woods, SVP Marketing & Partnerships
It’s estimated that there are roughly half a million ATMs throughout the United 
States. And an estimated 25% or more of those ATMs will need to be replaced over the next fifteen months. Two of the largest manufacturers have product lines that are sunsetting this & next year. Many credit unions have models in operation that will be expiring.
Budget and planning conversations are in process at many offices. 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 members that need cash and make deposits after hours. ITMs have grown significantly in popularity. If you’re currently considering ITMs, now is the time to speak to the professionals about how an ITM solution can complement and enhance the service you provide your members.
There are several key points or concepts to consider as you begin planning. The first is the capability of your current fleet. What types of transactions do your ATMs perform today? What are members 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 continues to hover at $4.50. You can save staff time and reduce your operational expenses by expanding the transactions available on your new units.
The second consideration 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 providers across the country are only capable of offering ATMs from one manufacturer. This dramatically limits their capabilities and your potential for success. If you’re working on an acquisition of another FI, they may have a different brand of ATM, which can mean a completely different set of service providers and contracts.
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(s) operational.
Our partner Dolphin can reduce your ATM expenses and vendor contracts. In addition, Dolphin can purchase new equipment and potentially purchase your existing equipment. Saving you a large amount of capital that you can direct to new programs. Reach out to your association representative to set up a call.
