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Cash is vital to disaster recovery: How IADs can help

May 19, 2014 by Mark Smith — VP of Financial Solutions, Kahuna ATM Solutions

I grew up in the Deep South where hurricanes are always worrisome this time of year. Everything heats up and the deluge begins — unpredictable, but certain. Similar weather patterns in America’s heartland are reminders of nature’s brutal force. We prepare for these seasons well in advance.

Every child living along the Gulf Coast grows up knowing that hurricane season starts June 1, and how to prepare for these deadly storms. With the arrival of a hurricane in the Gulf of Mexico, the family should fill up the car with gas; bring in any furniture or loose objects outdoors; and stock up on water, ice, canned goods, batteries, flashlights — and most importantly, cash.

It pays to have a disaster recovery plan in place and we should all account for our own safety. If caught unprepared, one soon realizes that modern world conveniences have disappeared. No power, no water, and no cash.

In recovery areas, cash is the only means of payment for emergency goods. And by the way, the cost of everyday supplies escalates in these situations. A lot of cash is needed.

This can be challenging in today’s world. Most of our data is electronic, so what do we do when the power goes out?

How can an independent ATM deployer help?

Many IADs have ATMs that are mobile and suited for outdoor events. Such an ATM can easily be deployed to run on a generator that powers the machine and its wireless communication device.

IADs are nimble and can quickly assist financial institutions to provide cardholder access to cash. An IAD can have service up rapidly and reliably — the entire community benefits. Once cash is flowing, crews can get busy restoring power and life can begin to get back to normal.

How does an IAD start?

Shake hands. Visit local and regional Fis and meet with their operations teams. What most FIs don’t realize is that in a disaster, they can’t replace damaged ATMs in a timely manner and their employees may have evacuated, leaving them without a workforce.

It could be months before they are open for business. IADs have fast access to inventory and can work quickly with processors to have ATMs in place in a matter of days, not months.

Learn as much about the FI’s cardholder base as possible. Prepare a strategic plan with the FI’s operations team stipulating how and where to respond in the event of a disaster. The FI serves certain areas that have more cardholders than others. You’ll need a plan that specifies which rapid deployments make the most sense.

If your services are called upon, execute flawlessly. Have a few ATMs ready to go, have parts in the event of terminal failure, and have a means to secure large amounts of cash in a hurry. Easier said than done? It is — unless you plan for it.

Ultimately, helping out in a disaster could result in your business securing a lasting relationship with the financial institution. By responding quickly and backing your promises, you’ll prove what your company can do for them. You’ll get a solid foot in the door and could gain their business for traditional ATMs when they rebuild their branches.

It’s unfortunate that we must always remain diligent about impending weather, but it pays to be well prepared. There will always be others who didn’t prepare well enough — and for them, cash will be vital.