2 minutes
The ATM price tag
This is bonus coverage from “Relieving the ATM Headache” in the March 2014 issue of Credit Union Management magazine.
Technology has both increased and decreased the cost of operating ATMs.
One big enabler of cost reduction is “centralized remote management,” says Tim Bergman, ATM industry veteran and associate advisor at Cornerstone Advisors Inc., Scottsdale, Ariz., a CUES Supplier member and strategic provider. “There’s an opportunity now for CUs to meet compliance needs and improve network uptime—at significantly reduced cost,” he points out.
“Remote” means the servicer, often a vendor, doesn’t have to send a technician to the ATM site to service it, but can fix many issues automatically from a central location. Most glitches can be fixed with a simple reboot, Bergman points out. In the past, a technician had to visit the malfunctioning unit and reboot it at the site—often a one- or two-hour service call for a five-second fix. If the reboot does not resolve the problem and an on-site visit is required, remote monitoring can often diagnose the problem and dispatch the closest technician with the right part, he reports.
But cheap solutions involve scale, and the steep curve of keeping up with technology and regulatory developments is causing some small CUs to question whether they can afford to operate ATMs at all. $16 million Oshkosh Truck Credit Union, Oshkosh, Wis., has just one ATM, attached to its single office.
“We just spent $4,000 a year ago to upgrade to comply with ADA (Americans With Disabilities Act),” reports CUES member Sara Steichen, president. “Now we’re looking at a projected $8,000 to $9,500 to upgrade again because Windows XP will soon become obsolete and because smart cards are coming. We were preparing to add a chip reader, but the XP issue was the last straw. At our most recent board meeting, we decided to take the ATM out rather than keep upgrading it.
“Before making any decisions, you need to ask your vendors how long a new ATM will be viable,” Steichen advises. “We were told that our current ATM could only be supported through 2016 and then would have to be replaced. We would then have to make another $24,000 investment to purchase a used unit. We couldn’t justify that.”
Richard H. Gamble is a freelance writer based in Colorado.
