Grand Prairie State Bank, a one-branch community bank, has installed an intelligent-deposit ATM.
Grand Prairie, which is based in Grand Prairie, Texas, near Dallas, deployed in October the Nautilus Hyosung Inc. Monimax 7600D drive-up ATM. The machine accepts envelope-free cash and check deposits as well as bulk deposits, said Rob Evans, a spokesperson for Nautilus Hyosung America Inc., which is based in Coppell,Texas.
Although Grand Prairie State Bank operates only one ATM, the company's decision to install an intelligent-deposit ATM was influenced by its much larger competitors. They are Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co., Evans said.
Bank of America and JPMorgan Chase, which operate the nation's two-largest ATM networks, have completed deployment of envelope-free ATMs. Wells Fargo is still deploying intelligent deposit ATMs in its nationwide network.
Officials of all three financial institutions said envelope-free ATMs increase consumer deposits at the ATM. Bank of America and JPMorgan Chase also air television commercials that emphasize how easy it is for consumers to use their envelope-free ATMs.
"Those banks compete within Grand Prairie State Bank's footprint," Evans said. "They [Grand Prairie State Bank officials] can cry about what is occurring in their market or they can deploy intelligent-deposit ATMs that allow them compete with the big boys."
Small banks slowly have embraced envelope-free ATMs. In a recent analyst report, Gil Luria, senior vice president of Equity Research and Financial Technology at Wedbush Securities in Los Angeles, noted that Diebold Inc., a Nautilus Hyosung competitor in the financial services market, would see continued improvement in ATM orders from smaller U.S. banks.
Nautilus Hyosung has moved into the financial services market. The company's largest customer is Citibank, which is based in New York City.
Nautilus Hyosung sold 2,000 ATMs to Citibank in 2008. The manufacturer also has hired former Diebold Inc. and NCR Corp. executives to market and sell ATMs to banks and credit unions. The company, however, is still searching for a vice president of sales for financial services. Nautilus Hyosung controls an estimated 70 percent of the off-premise retail ATM market in the United States.
