The business model that Tom Hannon uses for selling ATMs in the UK is imported from the U.S., where it made his Hanco Systems one of the country's largest ISOs with more than 4,000 machines in 40 states.
But practically everything else about his British venture, Hanco ATM Systems Ltd., is homegrown – from the workers who built the 7,500-square-foot office near London to a full-time staff of 35.
Hanco ATM Systems was recently tapped as "best international newcomer" by Investment in Milton Keynes, an organization similar to a Chamber of Commerce for the Milton Keynes area, which is about an hour's drive from London.
Business is booming in Milton Keynes, as evidenced by an unemployment rate of less than 2 percent and the presence of a number of foreign-owned companies such as Minolta and Daimler Chrysler.
Terry Turner, managing director of Hanco ATM Systems (and a native Brit, natch), said the award was especially exciting considering the caliber of the competition – heavy hitters such as Charles Schwab.
The "totally objective" award also gives the ATM industry some much-needed validation in the UK, Turner said.
"Cash machines in retail locations are still pretty far-out stuff here," he explained. "As the supplier to a brand-new market, we don't have a great deal of credibility yet. When you're trying to make a sale, people want to know if you're going to be there in five years' time."
Hannon also welcomed the recognition. "We've made over a seven-figure investment here, and (the award) documents it," he said.
Hanco ATM Systems went live with its first ATM last July, opened its headquarters in September and incorporated in January. It was one of the first independents admitted into LINK, the UK's national ATM network.
Spare parts and some machines, mostly Triton 9600s, are now inventoried in several warehouses, according to Hannon. Fourteen of the company's 35 employees are service techs outfitted with company vans.
Hanco Systems employees, including Hannon, make frequent trips overseas for sales training sessions. Turner said the training gives his British sales force a better understanding of the product.
"They have to sell the concept along with the machine," he said. "In the States, every c-store owner understands the benefits of an ATM. That isn't true here yet."
Turner said the company has 550 ATMs in the ground, with "more in the pipeline."
The retail market is taking longer than expected to develop in the UK, Turner said. "We're making money off it – but how big the market is, we have no idea."
Hannon hopes Hanco ATM Systems will become "a catalyst into the rest of Europe." But he believes it's too soon to predict where the next logical market will be. "I don't think the target has shown itself," he said.
