Article

Banks turn to outsource more sophisticated, remote ATM deployments

Banks are increasingly outsourcing more sophisticated and remote ATM maintenance to outside firms.

March 6, 2020 by David Jones — Editor, Networld Media Group

Banks and IADs continue to manage cash replenishment and perform maintenance on their own ATM machines for minor issues, but are outsourcing these tasks to expert providers when they need more complex servicing, according to a report by RBR.

The report shows that banks tend to handle cash replenishment and basic maintenance for their in-branch ATM machines, while outsourcing these services for their off-site machines. 

Rowan Berridge, who authored the company's Global ATM Markets and Forecasts to 2024 research, said there is some evidence that banks are increasingly outsourcing maintenance as they deploy more sophisticated ATMs.

"Anecdotally, we are aware that some banks outsource maintenance for their more advanced automated deposit ATMs, while in-housing for non-deposit ATMs," Berridge said via email. 

He cautioned that the research divided ATMs into on-site and offsite systems, so he was not able to provide enough specificity on that aspect of maintenance.

The research shows that banks generally consider it faster and more cost effective to replenish their own branch ATMs, however more off-site locations pose more of a challenge in terms of time, safety and of other factors.

When asked about the frequency of cash replenishment, he said that an increasing number of banks were using technology that can forecast when the ATMs would need replenishment in order to boost efficiency.

"Conversely banks tell us that more advanced, multi-functional ATMs are more likely to require frequent maintenance," Berridge said. "This can be mitigated to an extent, by the use of predictive maintenance software, although we don't believe this is very frequently used."

Cover image: iStock

About David Jones

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David Jones is the editor of Mobile Payments Today. He is a veteran business and technology journalist, with three decades of experience writing about business travel, real estate and technology.

Since 2015 he covered a range of technology stories for the ECT News Network, which includes the E-Commerce Times, TechNewsWorld, LinuxInsider and CRM Buyer, writing about cybersecurity, artificial intelligence, machine learning, open source computing and privacy issues among others. He recently covered FinTech issues for PYMNTS.com.

He worked as a staff writer for Bloomberg Business News and an online reporter for Crain’s New York Business. He has written for numerous media organizations, including Reuters, The New York Times, The Real Deal, Continental, City Limits and The Nation. 

He was previously awarded the George Washington Williams Fellowship for Journalists of Color by the Independent Press Association.