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women using atm, bank atm

Keeping every ATM in your network running effectively can be a challenge. Terminal management, ensuring units are stocked with a sufficient supply of cash, updating firmware and software, servicing the physical components of the ATMs and balancing are just a few of the tasks a financial institution has to deal with on a daily basis.

With over 70% of consumers expecting self-service options from their financial institution, branches closing in record numbers and the increasing cost of running an ATM network, many banks and credit unions have turned to ATM outsourcing to reduce expenses and increase efficiency.

inserting credit card in atm, using atm

Meeting Accountholder Demand

As we enter the digital age, more consumers rely on remote and/or mobile banking yet numerous studies show that cash is still the most widely used payment method and consumers are relying on ATMs more and more. Maintaining ATMs in high-traffic, convenient locations have increasingly become more important with over 95% of account holders utilizing an ATM at least once per week, according to a recent paper published by Star Financial Services.

For financial institutions, ensuring consumer brand interaction is vital to maintaining a loyal deposit account base. While long-time accountholders of an institution may be willing to travel farther to access their bank or credit union’s ATM, many consumers find this inconvenient and difficult to fit into their busy schedules. Younger consumers, especially Millennials who are expected to make up 75% of the workforce by 2020, demand more self-service options in a variety of easy to access locations, and may be quick to change to a more convenient institution.

Despite the increasing costs of maintaining an ATM fleet, consumer demand for branded financial institution ATMs in a wider geographic region is growing. That’s why so many banks and credit unions are turning to ATM outsourcing.

Save Time & Money with ATM Outsourcing

Rather than spend the time and effort managing their ATMs and dealing with the increasing ATM regulations, banks and credit unions are finding they can save time and money by outsourcing their ATMs ‒ using the extra money to develop new products and services, and time savings to direct their employees to focus on selling and customer service.

There are three types of outsourcing programs available, allowing financial institutions to choose the option most suitable to meet their needs.

  1. Institution Owned Machine and Cash, Vendor Management – In this type of program, the financial institution retains ownership of their machines and loads their own cash but contracts the ATM outsourcing provider to handle service, maintenance, processing, compliance and all other aspects of daily operation.

  2. Institution Cash, Vendor Owner and Management – In this program, the financial institution retains responsibility for the cash in their machines but pulls the depreciating ATMs off their books. Instead, the bank or credit union leases the ATMs back from their outsourcing vendor who is responsible for providing all the service, maintenance, compliance and daily operations.

  3. Complete Vendor Outsourcing – Financial institutions looking to save the most time and money often select to completely outsource their ATM networks. In this program, the vendor will purchase the machines from the institution and provides all the required services to keep the ATMs well-maintained, cash loaded and operating at optimal performance.

To learn more about how you can save time and money while meeting changing accountholder demands, contact the ATM experts at Star Financial Services.

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