MESA, Ariz.-With all due respect to the focus on mobile banking, Todd Nuttall says an old warhorse holds the possibility of new profitability in 2013: the ATM.
Nuttall, CEO of Better ATM Services, told Credit Union Journal that the introduction of the automated teller machine-now ubiquitously known as the ATM-more than 30 years ago brought two disparate reactions at the time: naysayers said members would never want steel and metal to replace their weekly trip to the CU and their relationships with tellers, while others said ATMs would be the demise of branches.
"Clearly, neither of those options came to pass," he assessed. "The number of ATMs has exploded. Next, credit unions must continue to build on the foundation of time and place convenience, and add value, to fuel growth."
According to Nuttall, the next stage of ATM evolution is machines that dispense gift cards and other prepaid media. He said CUs that choose to embrace innovation will be able to increase their service offerings and expand on "that love affair with value and convenience" consumers have.
Strategy To 'Delight'
The goal for CUs is "to delight existing members and attract new ones while increasing profitability," Nuttall said, adding, "ATM-dispensed prepaid cards reflect the world in which we live."
"People have hectic, pressure-filled days and more responsibilities than hours in the day," he said. "Sifting through gift card malls and standing in line to purchase and activate those cards after making an extra stop to get them just does not work in today's realities. And what message are credit unions sending their members when they teach them to go elsewhere to get the products they need?"
Instead of "losing money every step of the way" with ATMs that are strictly cash dispensers, Nuttall said ATM-dispensed prepaid cards represent a more than $540-billion market.
"While there are many who see 2013 as a year that will be defined by the lingering issues of 2012, including regulation, economic recovery and the Euro, plus the ever-increasing role of online banking and the burgeoning mobile market, I see 2013 as the year that could reignite profitability for credit unions for those who take another look at their ATMs."
For info: www.betteratmservices.com
