Ah, the venerable drive-up ATM. Most bank branches have at least one, and typically it's the machine that sees the most usage.
Because of its popularity, financial institutions of all types are showing interest now in placing them off-site, too.
"If you want to work with financial institutions, you have to offer a drive-through solution," said Gary Walston, senior vice president and general manager of Momentum Cash Systems, an independent ATM operator that recently beefed up its turnkey ATM outsourcing program geared toward FIs.
Bancard Systems, another independent operator offering ATM outsourcing, recently began manufacturing its own ruggedized enclosure for that very reason, said Russell Pandina, the company's director of operations.
Bancard's enclosure costs about one-third less than those manufactured by traditional enclosure manufacturers, Pandina said, and it offers improved features such as an aluminum case and a high quality powdercoat finish that does not scratch.
Bancard uses separate components for heating and cooling, rather than the usual combined unit, Pandina said. "That way, if your heating goes, you don't have to replace the whole thing."
"We took everything we didn't like about other kiosks and tried to improve upon it," he said. "Most companies assume banks can spend whatever they want and price accordingly, but that's not how we look at it. If the kiosks were more cost effective, a bank could afford to increase its number of locations."
Go where you want
Bancard operates ATMs for about 90 FIs, some of which also use the company's exterior enclosures. Many of Bancard's customers are clients of i_Tech, a subsidiary of First Interstate Bank Systems that offers transaction processing for FIs in Montana, Wyoming and North Dakota.
Tim Jackson, i_Tech's ATM/EFT services manager, said working with a provider like Bancard helps FIs "get into places where they couldn't go before because the lower transaction volumes didn't warrant putting an ATM there."
Providers like Momentum and Bancard typically use lower-cost ATMs and communications methods. They also receive more favorable pricing for services like transaction processing because they purchase in larger volumes than most FIs.
Richard Jochim of Montana's Flathead Bank said his institution uses a Bancard kiosk at two locations and is considering adding two more. The bank is using Triton ATMs and has trained a house technician to service them.
Although it was a small risk to switch to Triton since the bank had no previous experience with them, Jochim said their experience with the machines has been positive.
"I consider our business relationship (with Bancard) as one of the best in our entire organization. It's been a win-win every time we work together," Jochim said.
