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ATMs help banks stay relevant during festival season

As festival season approaches for concert-lovers, banks and credit unions can provide music aficionados with much-needed cash through ATMs. During the spring and summer months throughout the country, outdoor food and music festivals offer patrons opportunities to indulge in tastes and sounds. Food and art festivals are free to attend but charge for beverage and food consumption. Many vendors at concerts and festivals are cash only. As such, nearby banks can create a profit by charging slightly higher processing fees at their ATMs while servicing individuals attending events. This creates a relationship between the bank and the consumer regardless of whether they are a customer of said bank.

Banks and credit unions help local spring and summer events by providing services such as ATMs and sponsoring or partnering with organizations. For example, a town may host an annual "Taste of" festival where participating restaurants in the area set up booths. Guests at nearby events can come to the bank to withdraw cash at their branded ATM. This creates brand awareness of the bank in the consumer's mind during pivotal cultural events such as music, art and food festivals. This also gives banks the opportunity to market their services to any newcomers that may be visiting the establishment.

The benefits of ATMs

ATMs have been considered a part of a bank's technology arsenal since the early 1990s. Banks that provide ATMs for consumers do so at their convenience. Investing in an ATM saves a bank the cost of hiring another teller and any additional time the organization may take to train the employee. These machines also provide services at any hour of the day when a teller is unavailable.

As ATMs advance, they have additional abilities only tellers could previously handle. For example, many ATMs over the past five years could not accept EMV cards. If customers had an EMV card and wished to make a withdrawal with it, they may have had a brief period where they must use a teller to withdraw. While these problems are usually fixed within a matter of weeks at banks, all financial institutions must accept EMV chip cards by October 2016. This provides a convenience for customers as more companies issue EMV chip cards as a standard payment option. To help the community during fun local events, banks must invest in smart ATM technology.

May 4, 2016