or wait 15 seconds
or wait 15 seconds
I recently had a conversation with an old friend who happens to head the ATM channel in a well-known, super-regional bank. After spending most of the day at the very busy ATMIA show in Las Vegas, we were looking forward to a bit of quiet time with a craft beer and a cigar. While we were waiting for the server to bring our drinks, I asked him about the upcoming initiatives in his channel. As I have grown used to hearing in the past few years, a seemingly never-ending list of buzzwords came pouring forth: omnichannel, branch transformation, cash automation, assisted self-service, ITM, etc. I listened to him intently for more than an hour because I could tell he (and his bank) are very excited about creating branches and touch points that resonate with the customer of the future- especially millennials.
I believe in all these things, by the way. Most customers I speak to today are spending most of their time trying to find ways to fit into this strategy, and they absolutely should. At the same time, however, it seems as if a very large portion of the market is left underserved. There are many thousands of ATMs in the market that have been installed for several years and are there for only two reasons- to serve the customer or member and promote the brand image of the financial institution. No bells or whistles here- just dependability and functionality. With that in mind, here are some reasons that refurbished ATMs should be a part of every financial institution’s strategy for the future…
Refurbished Equals Value
The cost of a new ATM with deposit automation today can exceed $60,000 installed, forcing the financial institution to depreciate for more years than the real-world life expectancy of most ATMs. While new equipment is meaningful and necessary for lots of reasons, many times all that is really needed is a machine that is well positioned and that is dependable. For some institutions, it just makes sense from a cost perspective to replace old and outdated equipment with machines that look like new and have been completely overhauled so that it is possible to get many years of use in the field at a fraction of the cost. By purchasing refurbished ATMs, FIs can stay on top of the technology curve while moving at their own pace. Machines can be purchased in their base configuration and upgraded later when the timing is more favorable.
Refurbished Means Using the Current Fleet
FIs of all sizes can benefit from having their current fleet refurbished. Some of the largest ATM deployment companies in the world figured this out a long time ago- they do not always buy new equipment and depreciate it for years- it just doesn’t make financial sense. Most FIs could learn from this strategy. If machines have been in the field for years and have been dependable, why replace with new? Great value can be found in sending this equipment to a reputable refurbishment center. Most machines can be completely overhauled with new paint inside and out and pristinely reconditioned parts installed. An elite refurbishment center will also provide a checklist of all work performed for every machine, a power conditioner, a warranty, and great support for the team during and after installation. And, the best part is, the machines are already owned by the FI. This can also be a great solution for FIs that need new equipment such as ITMs in some locations but cannot really afford them for all locations- a little strategic planning can produce BIG savings. Finally, FIs can have their branding custom painted and/or wrapped right in the refurbishment center for a great new feel to the fleet.
Refurbished ATMs are Environmentally Friendly
In a world that is closely eyeing the effects of climate change and global warming, the concept of using machines made from recycled components is becoming increasingly appealing to companies and industries of all sizes. Rather than putting more nonbiodegradable material into landfills, old ATMs can be recycled to like-new condition, delaying the process of premature disposal. Most companies are interested in being good environmental stewards, and using refurbished ATMs is another way to make a positive contribution.
New equipment is a necessity as the branch experience continues to evolve, especially in our never-ending need to connect with a younger population. Refurbished ATMs, however, are a viable part of any overall strategy to revitalize an older fleet or to expand into new markets on a budget. Remember, a reputable refurbishment center will always work with you to craft the right solution and mix for your specific needs. There are many benefits to utilizing refurbished equipment- be sure to explore them!
by Marvin Bowers Vice President Sales - Global Division, ACG World