Members still love cash and convenience, so it’s up to CUs to find the best way to keep these machines in their delivery channel mix.
By Joe Woods
Sponsored by CU24
I'm a credit union member. My direct deposit paycheck hits twice a month. When I need cash, I go to the ATM. For me, the ATM is a necessity. The ATM is how I get to my money, and I couldn’t belong to the credit union without ATM access. As far as I’m concerned, no ATM, no credit union. Credit unions know they must provide convenient and cost-effective member service. As a result, ATMs are a critical component of their delivery systems strategies. ATMs can perform basic transaction functions more cost effectively than full-time employees, obviate additional brick-and-mortar branches, and provide 24/7 critical service in a convenient way. Often members don’t even have to get out of their cars for service. Despite decades of predictions to the contrary, people still use cash, and people love their ATMs. But credit unions don’t just wheel these big machines up to the wall and plug them in. The costs and steps required to install and maintain an operational ATM are considerable:
- selecting, negotiating and buying or leasing the ATM and equipment;
- armored service to provide vault access and cash replenishment;
- insurance coverage;
- telecommunication connections;
- daily settlement and reconciliation;
- security equipment, such as cameras and lighting;
- service technician and maintenance contracts to maximize up-time and ensure proper operation;
- employee safety considerations;
- compliance with changing regulatory and technological requirements;
- keeping current with software upgrades; and
- on-line monitoring.
Clearly many elements go into deploying and operating even a single ATM, involving almost every department of the credit union: operations, finance, human resources and compliance. Now a credit union’s expertise and core mission are not to operate ATMs, but to maintain and build relationships with members, and identify the services members need. So, why spend so much time managing increasingly specialized, cumbersome and technical processes? For some credit unions, outsourcing ATM operations is a good solution. These CUs prefer engaging a company with the core competence of ATM deployment and operation. That way they get to leverage a staff of experienced professionals who perform specialized functions related to ATMs every single day ATM outsourcing can often reduce overall costs by as much as 30 percent, and allow more flexibility in the deployment of CU staff resources. A solid ATM management partner also can take the lead on dealing with changing regulations, and help you to keep abreast of technological developments, like EMV compatibility. With an ATM management partner dedicated to ensuring quality ATM operation, credit union staff can focus on the critical task of serving members. Joe Woods is VP/sales of CU24. Also read “Does Chicago’s ‘Cupcake ATM’ Suggest Creative Options for CUs?” CUES School of Payments is slated for April in Chicago. CUES School of Member Experience™ is slated for September in Charleston, S.C.
