Outsourced ATMs offer banks an edge
For small and medium-sized banks looking to improve customer service without vast
expenditure on infrastructure the outsourcing of ATM networks is now possible. The success
of a fully outsourced and externally owned network in Poland could propel the outsourced
ATM model further across Europe.
Improving access to their money is a
powerful way to give customers better
service, but the capital expenditure
required to expand a network of ATMs
can be prohibitive, especially for smaller
banks. It is no surprise, therefore, that
effective models for outsourcing ATMs
are catching the eye of these banks,
which want to be at once more
competitive and more cost-efficient.
In the past four years the Cash4You
network in Poland has gone a long way to
proving the concept of ATM outsourcing,
and the last six months has seen a swell of
interest among banks across Europe.
‘Kredyt Bank, our largest customer
in Poland, wanted to maintain an ATM
network but without investing more in
IT,’ says Danilo Rivalta, vice-president and
general manager, central and southern
region at Diebold EMEA. ‘Now we are
seeing a lot of interest in Cash4You
because medium-sized banks want to
extend their branch locations, while small
banks want to build an ATM network
without the usual capital expenditure.
‘They want someone more expert
than they are to operate the network so
they have a better cost structure, a large
network around the country and better
service level agreements.’
Diebold, which owns and operates the
Cash4You network, is the largest ATM
outsourcer in the world. It is a market
leader in the development of ATM
technology thanks to its Opteva ATMs,
advanced teller-automation technology
and RemoteTeller systems. The company’s
expertise in self-service and security
solutions has been invaluable in the
development of Cash4You.
In Poland, Cash4You began in 2006
with 180 machines but has quickly grown
to encompass more than 570 machines,
with more to be added before the end
of this year. It is now the second-largest
ATM network in Poland, epitomising
efficient network operation, transaction
authorisation and clearing.
Seven Polish banks have signed up to
use the network, including MutliBank,
mBank and Kredyt Bank, whose customers
withdraw cash free of charge. The network
also accepts Visa, MasterCard, PolCard
and Diners Club transactions. In
September, Cash4You saw its largest ever
volume, with more than 1m transactions
for that month.
‘Cash4You is the ultimate version of
ATM outsourcing because we own it.
We are the only provider that operates
a network in that way, and the market is
now seeing that the model is successful,’
explains Rivalta.
Beyond the border
Diebold has increased the number of ATMs
for client banks by focusing not only on key
urban centres but also smaller towns, metro
stations and groceries. It has agreements
with Carrefour and Tesco among others.
This diverse network relies on the
company’s market-leading ATM technology.
‘We develop ATM technology, so
our monitoring capability becomes an
impor tant par t of the offering. That
helps to make the outsourcing model
very successful, especially for small and
medium-sized banks. We can maintain the
technology for them and ensure the high
quality of service,’ says Rivalta.
‘It is a convincing model for certain
types of bank, particularly those who
don’t want to make long-term investments
in infrastructure. We are not, of course,
aiming to compete with the networks of
our large banking customers, which buy
our technology.’
The compelling message about high
performance and quality service to
emerge from Cash4You could soon see
it expand beyond Poland.
‘We are looking at other CEE countries
where non-bank institutions can manage
an ATM network with bank sponsors.
Southeast Europe is another area where
there is a large potential for growing ATM
networks, but our expansion is still at the
planning stage,’ notes Rivalta.
With deposit automation likely to be
added to the network, and the track record
of reliability and cost-effectiveness growing
all the time, Cash4You could well kick-start
a new era of ATM outsourcing. |
