How banks can benefit from ATM service providers

(STL.News) With the world growing smaller, the banking world has grown more complex, with its intricate jungle of networking and the management of its various operations.  Financial Institutions are now faced with a new world, and they need to stay relevant, updated, and quick on their feet before this becomes a world they no longer recognize.  And so, a Bank can use all the help it can get to keep its table uncluttered for its core business work if it needs to stay ahead in the game.

Banks typically use an in-house ATM team to manage their fleet of ATMs and meet all the requirements and compliances.  But this is now becoming undoubtedly an expensive and dated way to go about things, especially when ATM service providers are now available and have been proven to be more cost-effective.  These providers offer wide-ranged, specialized, intensive, and thorough services in a way that an in-house team could never provide, whether these are ATMs spread in a particular place or whether over a large territory.

The need for ATM service providers

This article seeks to emphasize how an ATM service provider could be hugely resourceful for your financial institution.  Consider how regulations and compliances have grown and have become more complex over the years, with all the technological developments and systems growing out of their old skin.  And so, the implementation of these varied requirements needs a trained service provider that is up-to-date.

For instance, consider the compliances for small entities, such as Electronic Fund Transfers (EFTs).  These compliances enumerated in Regulation E, where there are requirements such as making general and initial disclosures, issuing access devices, providing notice for pre-authorized transfers, notice and procedure for error resolution, and so on.  In the U.S, from October 2016, the liability for the counterfeit card has shifted to ATMs that don’t accept EMV cards, the ATM acquirer will be liable for the issuer’s losses.  And so, it is important to make sure that ATM card readers can read EMV cards and for a Bank’s network of ATMs to meet the EMV compliance in full.

The enforcement of the regulations and providing security for ATMs is high-priority for the Federal Financial Institutions Examination Council (FFIEC), with this council having agencies such as the Consumer Financial Protection Bureau (CFPB), the Board of Governors of the Federal Reserve System (FRB), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC)

The Banking Industry is also filled with difficult compliances, such as compliances for Americans with Disabilities Act (ADA) which are taken very seriously along with compliances for the Payment Card Industry (PCI).  There are also compliances for the Europay, MasterCard, Visa (EMV) migration.  Banks must also meet the Data Security Standard (DSS).

The nature of services offered and their benefits

Apart from avoiding the management costs that come with having an in-house team, you also get to lower your operational costs.  The service providers will significantly reduce your acquisition,
installation, and improvement costs for ATM machines.  It is an easy way to reduce your capital expenditure.

It is obvious that branded ATMs are more easily recognized and trusted, owing to their popularity.  Such esteem and recognition can be achieved through good marketing.  It is done by way of the use of colors and words that are very characteristic to your Bank.  It is wise to devote plenty of time to generate brand awareness.  It will also include studying and choosing good, busy, populated locations and focusing on convenient and clever ATM placements.  ATMs are prime locations for your brand to stand out and be showcased. Customers may even become regulars who will want to visit your branch or open an account for surcharge-free ATM use.

It is important to retain customers.  Such retention and growth can be achieved by way of providing a good user experience, especially for technology-loving millennials, who expect a quick and smart user interface, interaction, and convenience.

ATMs capabilities must be extended in as many ways as possible, such as harmonizing the ATM experience with a tech-savvy user’s smartphone, allowing him or her to have a personalized user interface, and save his or her time.  Functionality must always be sought to be increased.  User experience must never be slighted.  It is also necessary to ensure all the safety mechanisms are in place for the user’s best interests.

Maintenance services are also provided. Such services will include avoiding any cash jams, resolving cash outages through quick replenishments, adding paper supplies for cash receipts, and avoiding any surpluses.

The services also provide you with any off-site and on-site support that you may need, along with helping you with your annual safety audits.  These services will leave your bank staff with more legroom to focus on the core banking business tasks while the ATM service providers dedicatedly provide you with cash management services.

Cash forecasting helps determine the optimum cash amount required for an ATM to have adequate cash and also to make sure there is no idle cash.  Armored cars for Cash-In-Transit (CIT) operations and insurance also help in overall monthly savings for banks.

The services will include a consolidated electronic report that will provide all the essential information that a client may need and can have access to.  Such reports help in a quick settlement
and reconciliation.

Summing up

Banks may heave a sigh of relief, knowing that a good chunk of their day-to-day operations is entrusted to an ATM service provider.  Outsourcing to a trusted, reputed service provider makes it the primary contact point for all levels of your ATM operations and for speedy resolutions of any issues that may arise.  A dedicated and devoted service provider will undoubtedly save time and cut costs in a monumental way in the big picture.