STRATEGIC PARTNERS
The transfer of power that recently took place at E-TRADE Access was as peaceful as the one that took place on Pennsylvania Avenue, though the old and new management teams at E-TRADE share a bipartisan goal.
January 23, 2001
At the recent inauguration of George W. Bush, several speeches referred to America's unique system of peacefully transferring power. Like politics, transfers of power in the business world can be bloody.
That was not the case in a recent top-shelf shuffle at E-TRADE Access, the 10,000-machine strong ATM network that elevated a new president and said good-bye to four other managers who had helped take the ISO to the top of the industry. The leadership team shepherded the firm through its acquisition by E-Trade Group Inc. and earned a reputation for innovative deployment strategies.
With little fanfare, Dave Grano stepped aside this month as president and chief executive officer. His handpicked successor, Doug Steck, joined E-TRADE last summer as chief operating officer with this move in mind. Also gone from E-TRADE are chief financial officer Chris Marsh, along with vice presidents Jay Halverson and Matt Buhler, who were responsible for sales and distribution, respectively.
Steck promoted Rick Holt, who joined E-TRADE last August as director of business development, to the position of vice president of sales. Holt will be responsible for many of the duties that had been handled by Halverson and Buhler. Steck said other in-house promotions might take place later.
"Dave (Grano) did a great job of getting us a whole new set of opportunities, that will take us to the next level," Steck said. "My first thing is that if it's not broke, don't fix it. Dave and I had an understanding about where things were going. Timing was the variable."
The situation draws parallels to the American political landscape. Grano, like Bill Clinton, said he has no immediate post-presidential plans, and is fulfilling a promise to spend time at home with his wife and two kids. Grano said he will consider business opportunities down the road, but wouldn't put a timetable on a return to the business world. He said there is no plan for he and Marsh, Halverson or Buhler to work together again, but didn't rule it out.
Unlike the American political system, the new leader at E-TRADE adheres to and enthusiastically supports the policies of his predecessor. At E-TRADE Access, a changing of the guard was not only peaceful, but also planned for and endorsed by all the parties involved.
The key initiative underway at the company is the development of advanced functionality features for ATMs. Steck says the emphasis will be on using new tools on ATMs where it makes sense from a revenue perspective. The company has experimented with ideas such as placing ATMs at workplaces and with installing a deposit-taking machine at a Georgia Target store.
"I would say some accounts will want to leverage functionality, that some will understand the advantage of adjusting, while others are happy with cash dispensing," Steck said.
Steck said the company is studying those applications and will continue to explore different functionalities along with its primary manufacturing partner, Triton.
E-Trade Group Inc. acquired the company last May, seeking to extend its growing Internet bank brand with a large ATM network. The ATMs made it easier for E-TRADE customers to set up brokerage accounts. In December, E-TRADE Access announced it was extending the E-TRADE brand on all its ATMs, providing no-fee service with links to stock prices and investment accounts.
E-TRADE Access is the third-largest off-premise network in the country and the third-largest ATM network overall, according to American Bankers Association statistics from last July.
Steck said the company's base of 10,000 ATMs is likely to grow by at least 2,000 in the next year, and he expects to have around 13,000 operational by the end of 2001. He said some of the growth is likely to come through acquisitions, continuing a strategy that the company adopted under the previous managers.
