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CASE STUDY: Credit Union banks on ATS Uptime for cash replenishment

The Chicago Patrolmen's Federal Credit Union hired ATS Uptime for cash replenishment and vault pull services, on Diebold's recommendation.  Read more about this relationship in this case study.

September 21, 2004

ATM customers, for the most part, don't care who puts the money into the ATM machine, as long as money comes out when they need it. The same is true of ATM repairs and service. Keep the receipt paper rolling and the machines up and running, and ATM customers are a happy bunch. Knowing who to call to keep your ATM machines operating problem-free, and loaded with cash, makes financial institutions happy as well.

An industry referral led a growing credit union to an up-and-coming provider of first-line maintenance and cash replenishment services.

The Chicago Patrolmen's Federal Credit Union was established in 1938, originally for Chicago patrolmen ("blue shirts") and their immediate families. The credit union boasted more than $1 million in assets by 1949. In that same year, the credit union's Board of Directors implemented a policy permitting members to maintain their accounts as they move up the police ranks or retire. This policy has led directly to the continued growth of the credit union, which claims assets in excess of $175 million - and 18,300 members - today.

Industry referral means business

Back in 2000, the Chicago Patrolmen's Federal Credit Union, in conjunction with Diebold, started rolling out ATMs, offering banking convenience to its members. The credit union began with two full-service machines in its main office and cash dispensing machines in seven of the 25 police districts (similar to precincts). The police training academy and the police headquarters each have one machine. Before 2005, three more full-service machines will be added in the districts. As the ATMs were rolled out, Diebold, recognizing the credit union's need for cash replenishment and vault pull services, recommend ATS Uptime. James Carlson, the company's president and CEO, gives credit to Diebold for the referral. "We had a local relationship with Diebold in banking and armored car services. We could satisfy the credit union's needs. The credit union was comfortable signing with us directly. Diebold sold our service."

Although Diebold is a multibillion dollar company with thousands of employees worldwide, it did not provide the armored car service that the credit union needed. According to Jim Bedinger, the credit union's CIO, ATS Uptime was chosen because the company offers an armored car service as well as ATM maintenance and repair. ATS Uptime reviewed the ATMs usage and made recommendations to the credit union to streamline operations.

"ATS looked at the cash in the machines and reduced the amount of cash in machines that weren't being used (as frequently)," Bedinger noted. Money sitting unused in an ATM is worthless money. "It could be lent out or invested," he added.

Newer service company boasts experience

ATS Uptime's management team has more than 30 years of combined experience in the ATM and banking industry. Starting the company was easier than convincing new customers to do business with ATS Uptime, according to Carlson. He likened it to "coming out of college and looking for a job, and needing experience."

Carlson and his partners felt strongly that their mission was best reflected by adding Uptime (what every ATM customer needs) to the company name. Most customers, in Carlson's experience, consider a combination of factors including cost, efficiency and integrity when choosing an armored car/ATM service provider. In the end, ATS Uptime's size actually made it a good fit for the credit union. "We were new in the business. We had experience and they (the credit union) didn't get lost in the shuffle." ATS Uptime also understood the credit union's goal of reaching targeted customers and offering convenient service.

Carlson explained that ATS Uptime's cash replenishment process now in place is seamless. "We go to the Federal Reserve Bank, pick up the money (on the credit union's behalf), vault the money, and load the ATMs." ATS Uptime follows up this procedure with a daily report faxed to the credit union. The company also offers online reporting for customers who request it. ATS Uptime pulls deposits from the credit union ATMs Monday through Friday. The ATM cartridges, stocked with $10s and $20s, are restocked weekly. Tellers verify the deposits and maintain a balance, as does ATS Uptime. In addition, ATS Uptime is conducting first-line maintenance in conjunction with Diebold, including stocking receipt paper.

ATM locations offer built-in security, no fees

In addition to banking convenience, the Chicago Patrolmen's Federal Credit Union offers its members security as well. Members can feel especially safe using any one of the 12 ATMs deployed throughout the police districts. No one is going to rob someone using an ATM in a police station. In addition to safety, members do not pay a surcharge for using the credit union ATMs. Nonmembers who use the credit union ATMs are not charged. Their banks, however, pay a small fee to the credit union per transaction. Since Chicago has a residency requirement for its police officers, 95% of the credit union members (active police officers and their families) live in the Chicago metropolitan area. As a result, members were very much looking forward to the addition of ATMs for their banking convenience.

According to Bedinger, the Chicago Patrolmen's Federal Credit Union plans to continue to work closely with ATS Uptime as it considers adding ATMs to additional districts. By not charging its ATM customers a surcharge, the credit union's budget for future ATM rollouts remains somewhat tight. For now, the Chicago Patrolmen's Federal Credit Union is meeting its customers need for instant cash and convenient 24-hour banking with the help of ATS Uptime.

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