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Sunsetting, ATMs, and Planning for the ATM of the Future

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As if maintaining your ATM fleet didn’t come with enough headaches and expenses, the imminent sunsetting of the most widely used ATM hardware/software in the U.S. is forcing  credit unions to re-evaluate their fleet and ATM strategy going forward.

Two of the largest ATM manufacturers in the U.S. have announced plans to discontinue support, or “sunset”, their most popular ATM products, meaning roughly 50% of U.S. ATMs will need to be replaced or upgraded with a hefty price tag within the next two years.

Chances are your credit union falls into the majority who will be required to pour additional investment into an ATM fleet that already comes with a laundry list of expenses and tedious management tasks that eat away at precious staff time and capital.

While credit unions weigh their options of how to handle the sunsetting of their ATMs, it’s also important to keep in mind the simultaneous shift we are seeing in the financial services landscape. Meaning: How do your ATMs fit into the digital era and self-service expectations of your members? What hardware should you be considering to future-proof your investment? When and where should ITMs be implemented into your plans? The list goes on…

How and when to invest into ATM/ITM fleets is becoming a growing topic as credit unions of all sizes are looking to the future and laying out there plans for “digital branch transformation” and incorporating more advanced and sophisticated ATMs into those plans. These new machines may be deposit-taking ATMs, “future-proofed” ATMs with equipment that streamlines upgrades when needed, or the top of the line: interactive teller machines (ITMs).

We are seeing heightened interest in credit unions eager to make the leap into ITMs, and who can blame them. It is clear that this is the direction the financial services world is being pulled by digital consumers who demand convenience and self-service. ITMs also give credit unions the ability to extend service hours, increase their footprint with mini-branches, and shrink their cost per transaction by reducing staff and overhead costs. But, ITMs come with a significant investment, which is why many credit unions are taking an interim step into a future-proofed ATM carrying hardware that is easily upgradable for seamless ITM conversion down the road.

The looming sunsetting of ATMs means the clock is ticking and pressure is being put on credit unions to make buying decisions in regards to their ATM fleets. But, as we have discussed, decisions made now will have a big impact on member service capabilities for years, and investment should carefully considered as to fall in-line with your long-term ATM/ITM strategy.

With staff and budgets stretched thin, your credit union simply may not have the bandwidth to prioritize your ATM/ITM strategy. You’re not alone, and there are options available to helpguide your institution through the changing ATM/ITM technology and self-service expectations. ATM Outsourcing, ATM Managed services, ATM-As-A-Service, or any other way you want to define the service makes more sense now than ever. But, it’s important to find the right partner.

Dolphin Debit, the pure play ATM outsourcing company, is comprised of ATM experts stem to stern, it’s all we do! Since 2005 we have provided credit unions with consulting and turnkey management services, using our own capital to upgrade your machines, or replace them on your behalf. Helping you wade the waters of the ATM industry while allowing you to maintain control of the program and collect interchange and surcharge revenue.
We are your ATM department. Our experience and vision will legitimize your ATM/ITM strategy long-term, our economies of scale will drive down costs and improve service levels, and our people will carry out our track record of reliability to maintain pristine ATM uptime. Talk with your league representative today about scheduling a free consultation. Members will thank you and new accounts will find you.

This content is for CU BUSINESS eMagazine , Special Deal: 2 websites , and NEW! The Leadership Team Builder Group Subscription members only.
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