Offsite Retail ATM Points of Presence:A Key Component Of Your ATM Strategy

Whether you’re one of the top 10 financial institutions (FIs) in the U.S. or a bank or credit union providing services within the local community, ATM reach is a key component of your overall business strategy. After all, your ATMs are a key provider of cash to your cardholders. And cash, instead of diminishing in popularity, as prophesized by many pundits, is holding its own* alongside other payment options such as digital and mobile. Consumers are determinedly using it as a simpler, convenient and faster payment option for everyday needs.

For a larger financial institution, owning and operating an ATM fleet requires considerable resources – both human and financial – that are increasingly harder to provide when a wider, offsite ATM reach strategy is needed to support a large cash access footprint for your customers or members. For smaller financial institutions with few branches, ensuring retention of cardholder accounts requires, in part, access to an extensive ATM fleet. How do you overcome challenges like these?

Is Your ATM Strategy Meeting Your Business Requirements and Goals?

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832.308.4000

Non-bank, offsite retail ATM points of presence is a marketing strategy that pairs a financial institution with popular retailers, allowing the institution to self brand ATMs at the retailer’s locations. In addition to extending reach and presence, the strategy enables the financial institution to provide surcharge-free cash to its cardholders – which they can then use to purchase items in the store. For example, ABC Bank might decide to extend its ATM points of presence within the local area by branding ATMs in specific retail stores located in that area.

Or XYZ Credit Union may want to brand ATMs at specific retail stores in an entirely different state than where the majority of its members are located – but where it has a sizeable demographic of other members that desire access to surcharge-free cash and whose accounts the credit union wishes to retain. Or consider a university-based credit union that wishes to retain the accounts of its alumni, or a credit union in the Upper Midwest that sees its snowbird members flock to a Sunbelt region for the winter.

Non-Bank, Offsite Retail ATM Points of Presence

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51%Mercator Advisory Group CustomerMonitor Survey Series,Banking and Channels, 2011–2016

of respondents use ATMs more than once per month

Retail ATM points of presence enable a financial institution to brand topper panels or digital topper screens and ATM screens with custom colors, logos and graphics. The financial institution is also able to brand ATM receipt headers, retail store window signs, decals and more within the store, when those opportunities are available at a particular retail location.

Non-bank, offsite retail ATM points of presence is a marketing strategy that pairs a financial institution with popular retailers, allowing the institution to self brand ATMs at the retailer’s locations. In addition to extending reach and presence, the strategy enables the financial institution to provide surcharge-free cash to its cardholders – which they can then use to purchase items in the store. For example, ABC Bank might decide to extend its ATM points of presence within the local area by branding ATMs in specific retail stores located in that area.

Retail ATM Points of Presence: The Business Case

No capital investment is required for ATM purchases

Operation costs are reduced, because ATM management and operations become the responsibility of the ATM provider

Branch expansion requirements may be mitigated, reducing the need for additional capital and staffing costs

REDUCTION IN COSTS

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FI-branded ATMs are located at popular, high traffic retail locations such as CVS, Walgreens, Costco, Target and more - locations where cardholders regularly shop

Cardholders experience convenient and fast access to cash at numerous locations

Cardholders enjoy surcharge-free access to their cash at a wider choice of ATM locations

EXTENDED ATM REACH•

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Finding a provider that is a good fit with your business is essential when you elect to use a third-party provider to extend your ATM points of presence. After all you are releasing your brand to the protection of someone else. It’s important, therefore, to select an experienced provider with the expertise amassed from both large and small ATM branding deployments – one that has been in business for many years and is financially stable. At a minimum, an experienced provider should offer:

ATM Providers: Finding the Right Fit

Acting as mini-billboards, branded ATMs give cardholders the perception of extensive ATM availability – helping to retain existing cardholders and garner new ones

Customized ATM screens, as available, can relay marketing messages to cardholders about the FI’s other services

Branded ATMs provide an extension to current marketing strategies for creating awareness and driving new business

Branded ATMs offer a soft market entry into a geographic area to which the institution may later expand with branch locations

EXTENSION MARKETING

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With an ATM provider operating and managing offsite retail ATMs, the financial institution doesn’t have to devote resources to day-to-day ATM management, technology upgrades and regulatory and compliance requirements or deal with idle cash or settlement and reconciliation. Management’s time is freed up to focus on and drive the institution’s core business objectives, especially growing its cardholder base.

REFOCUS ON CORE BUSINESS

With an extended fleet of branded ATMs made available to cardholders, your financial institution is better positioned to compete with larger FIs that have considerable-sized ATM fleets of their own.

IMPROVED COMPETITIVE POSITIONING

• High visibility brand exposure in premium retail locations• Surcharge-free access for your cardholders• Intra-transaction marketing opportunities to all ATM users

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Making ATM cash access convenient where people shop, work, and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs, and the customers they share. Cardtronics provides services to approximately 231,000 ATMs in North America, Europe, and Asia-Pacific. Whether Cardtronics is driving foot traffic for top retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

About Cardtronics

In addition to the above, a host of other criteria may be desirable. For example, look for a provider that consistently explores new ATM ideas and innovations and brings them to market when the time is right.

In spite of the plethora of alternative digital payment options, cardholders still want and need access to cash to purchase a host of products and services. Financial institutions can meet that need by providing their own branch-based ATMs complemented by offsite, retail ATMs custom-branded with their logo and other marketing messages.

*2016 Cash Survey conducted by Edelman Intelligence and commissioned by Cardtronics.

Copyright © 2017 Cardtronics. All rights reserved. Cardtronics and the Cardtronics logo are trademarks or registered trademarks of Cardtronics. Other product and service names are trademarks or registered trademarks of their respective companies.

Two-thirds

Mercator Advisory Group CustomerMonitor Survey Series,Banking and Channels, 2011–2016

of survey respondents indicate that an ATM located close to home is a primary criterion for selecting an FI and 43% indicate an ATM located near to their workplace is important.

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