With EMV liability shift approaching in the U.S., financial institutions are preparing for the switch. Banks have to upgrade their ATMs in compliance with the EMV standard by October 2016. In relation, we discuss five reasons supporting the outsourcing of their ATM fleet.
Financial institutions that haven’t upgraded their ATMs by October 2016 could face a significant financial burden from fraud, not to mention the loss of consumer trust. There are options available to ease the stress though — including the outsourcing of their ATM fleet to a third party. We present five reasons in favor of it:
Reduced operating costs
By using an ATM management company, banks can take advantage of collective buying power and dramatically reduce operating costs. Not to mention that, with the right provider, they can also receive best-of-class service for an affordable monthly fee.
Less stress on back office resources
Cardholder trends show that financial institutions are focusing heavily on developing mobile applications and sophisticated online banking tools. Therefore, resources to manage ATMs and concerns such as EMV, PCI security standards, ADA regulations, Windows 7 migration and software integration might be very limited. This is where ATM outsourcing can save you time and money. With the learning curve, logistics and labor requirements of frequent and ongoing ATM upgrades out of the way, your back office staff can focus on developing programs that will allow your institution to attract new accountholders.
Improved customer services
Quite simply, the purpose of an institution is to provide loans and financial services to its customers. ATMs play a big role in consumer satisfaction, but this service is just a fraction of what a financial institution delivers in quality programs. By outsourcing their ATM program, they relieve their front line staff of these time-consuming tasks and allow them to focus instead on providing the best possible service.
Fewer regulatory compliance headaches
With ATM fraud on the increase, one of the greatest benefits of ATM outsourcing is an institution’s ability to eliminate its responsibility for maintaining regulatory compliance in matters related to ATM security and fraud protection.
Access to top-drawer ATM capabilities
The leading ATM outsourcing companies use world-class services that improve the daily management of ATMs. These might include ATM transaction processing and reconciliation; maintenance alerts; vault cash forecasting and management; surcharge-free network access; and state-of-the-art ATM marketing that can expand the brand and increase consumer awareness. With an outsourcing company, financial institutions gain access to these tools for a fraction of the cost of developing them in-house.
Putting ATMs in the hands of experts in an outsourcing agreement can relieve financial institutions of the stress of having to upgrade their ATMs to EMV, save them time and money, and help them keep their team focused on growing the institution.