FIs looking to invest in upgraded ATMs, new technology in 2015
By Jim Ghiglieri
There are more than 400,000 ATMs currently in service in the United States, about half of them owned by financial institutions. So what plans do FIs have for their machines that are aging and in need of repair or replacement?
A recent Cummins Allison survey found that FIs are focusing on the future of ATMs with plans to invest more in ATM technology. In fact, the survey concluded that 58 percent of FIs plan either to expand their ATM fleet or to replace all or part of their existing machines within the next year.
On top of mandated and required security advancements in the form of software upgrades and EMV implementation, many FIs are exploring innovative ATM capabilities. These include video tellers, biometrics and targeted marketing.
The CA report, “The Changing Face of the ATM Market,” broke down FIs’ three-to-five-year ATM plans by the numbers:
- 64 percent plan to install EMV readers;
- 31 percent intend to implement electronic receipts;
- 24 percent are looking to upgrade to touch screen technology; and
- 23 percent are considering integrating targeted marketing.
“The survey clearly shows FIs are committed to deploying new technology and new features in their ATMs as they move toward more customer-centric banking,” said Tom Conroy, senior director of the ATM business unit at Cummins Allison, in a press release.
Asked what they are looking for in an ATM vendor, survey participants cited quality of product and quality of equipment service as their top priorities.
Eighty-eight percent listed price of equipment/services as a top priority, while 87 percent ranked the reputation of the vendor high.
Lastly, 72 percent deemed quality of sales support as a main consideration for new and continuing partnerships.
FIs searching for new ATM partners should outline their expectations clearly before looking for a vendor that will suit their requirements. These should be communicated up front, included in contracts and used as benchmarks for regular evaluation throughout the partnership.
photo courtesy andrew magill | flickr
Jim Ghiglieri leads Shazam’s communication efforts by working directly with industry organizations, trade associations, and media outlets to affirm Shazam’s focus on representing the voice of community financial institutions in the electronic payments industry.