ATMs are a focal point in the operations of many financial institutions. They represent an opportunity for giving customers the services they need, including deposits and bill payments. However, maintaining them can be a laborious process for banks and credit unions. It can also be expensive. The question of whether to keep ATM operations in-house can be an important one, especially when control and the bottom line are at stake. One option for dealing with this issue is outsourcing fleet management to a third party. Before taking such a drastic action, it's important to consider several different factors so that it happens with clarity and foresight.
There are various situations where holding on to ATM fleet management in-house is not necessarily in the best interest of the financial institution. ATM Marketplace offers a few examples for banks and credit unions to consider:
There are other things to consider when outsourcing ATMs is on the table. One is minimizing the storage of vault cash, according to a white paper by ATM Marketplace. Money is expensive to oversee, so third parties using their own vault cash as collateral can help keep costs low. Risk management is also an important factor, since cash handling involves paying insurance and considering exposure to theft. Due to their expertise and scaled-up operations, outsourced fleet managers pay less in insurance, which helps bring down overall expenses per load. With these benefits in play, outsourcing ATM fleet management may be a wise decision in the long term.
January 28, 2016