FI ATM Fleets: How to Reduce Costs, Keep Customers Happy

While ATMs offer a valuable service to customers, ensuring their smooth operation can be complex and costly. Hidden costs associated with in-house ATM management, such as labor, security, and cash ordering and optimization, can quickly eat away at your bottom line. Here’s what FI professionals need to know, and what to do about these high costs.

The High Cost of In-House ATM Management

Managing ATMs in-house can be a significant time and resource drain for FIs when operating and labor costs are considered. It also exposes your employees and ATMs to potential theft risks. Maintaining secure cash storage and implementing security protocols require additional investment. Additionally, inaccurate cash forecasting can lead to either ATM outages, frustrating customers at both your branches and partner convenience stores, or excess cash sitting idle in machines, incurring unnecessary holding costs.

Optimizing Your ATM Operations for Retail Locations

Financial Institutions play a crucial role in providing convenient cash access for their customers. This includes ATMs located not only at bank branches but also within retail stores like convenience stores.

Did you know that over half (54%) of convenience store customers who use the ATM also make a purchase during their visit? Of ATM users who made an in-store purchase, 85% visited the ATM prior to making a purchase. And this trend extends beyond convenience stores—ATMs provide a valuable service for customers in various businesses.

According to Convenience Store News, ATM usage in c-stores has risen by 10.6% from 2022-2023. This prompts the consideration of similar trends potentially affecting other retail sectors. In today's competitive landscape, every dollar counts. But hidden costs associated with in-house ATM management may be affecting your ATM fleets. Many businesses underestimate the time, resources, and security risks involved in managing their ATMs themselves or through an unreliable partner.

Risk Factor: Unreliable Vendors

Maximizing ATM profitability goes beyond just usage statistics. Hidden costs associated with in-house ATM management or an unreliable partner can make a significant impact. Imagine the result of frequent downtime due to missed services or unresponsive support.

This unreliability can cripple your cash flow and leave customers frustrated. Adding insult to injury, when you reach out for help, you encounter long wait times and unhelpful representatives, leaving you feeling unheard and stranded.

Don't settle for this kind of stress. That's why so many of the largest institutions choose Loomis, known for dependable service and responsive customer support. When you partner with Loomis, you know your contact person by name—no bureaucracy or AI chat bots.

Real-World Example: Citizens Bank Saves 29%

Citizens Bank, a leading financial institution, partnered with Loomis to streamline their cash handling operations, with ATM services as part of that bundle. The results? A staggering 29% reduction in overall costs. Loomis' expertise helped Citizens Bank optimize cash levels, improve security, and free up valuable staff time.

Don't Let Hidden Costs Eat Away Your Profits

Consider exploring solutions that offer expert ATM servicing to minimize downtime across your entire network, data-driven cash management to optimize cash levels in all your ATMs, and secure cash transportation for added security when moving cash to and from ATMs.

Next Steps

Are inefficiencies bogging down your ATM operations? Loomis can help you:

• Reduce labor costs associated with managing your ATMs.
• Reduce security risk protecting your people and profits.
• Forecast cash usage for each ATM ensuring optimal levels of cash.
• Improve operational efficiency and free up your staff to focus on core business activities.

Contact Loomis today to learn more about our ATM services and how we can help you save money while keeping your customers happy.