Continued on page 24 ATM Pooling: At its inception over 50 years ago, the ATM fired the starting gun for the self-service banking culture and quickly gained steam as a crucial touchpoint that freed account holders from the shackles of business hours and banking at a single branch. Today, a myriad of factors including trends accelerated by a global pandemic, social/political pressures, and rapidly advancing ATM technology are again shifting self-service expectations and changing the framework of the traditional ATM network. For community banks, the recent changes surrounding the ATM have created a quandary in regard to their ATM network strategy. On one hand, cash usage decline and scares of a “cashless society” have put a microscope on escalating ATM costs, usage, and regulatory compliance for community banks, and understandably so. But, simultaneously, access to cash remains relevant, accounting for roughly 20% of all transactions in the U.S., and the pressure for community banks to serve even the smallest of communities remains constant. All while new ATM technologies continue to add functionality and deeper account access for consumers, giving way to hybrid or fully self-service branch models. So, to sum it up — If you reduce or stop investment into your ATM fleet, you risk a critical self-service channel becoming obsolete and your institution failing to effectively serve your customers and community, likely costing you accounts and goodwill. Conversely, if you continue to invest in your ATM fleet to meet the rising demand for self-service, the cost is high and the return is low, in other words, putting more capital into a loss leader. So, where do we go from here? Shared Infrastructure: Across the globe, community banks faced with this same dilemma have turned to a solution commonly referred to as “ATM Pooling”, a strategy that delivers operational cost savings while expanding the ATM footprint and simplifying the management and security of the ATM channel as a whole. By Dolphin Debit Solving the ATM Puzzle for Community Banks September • October 2022 23
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