HOUSTON–More CUs are now placing their branding on existing ATMs to extend their reach without investing in new machines.
Rick Updyke, president of Cardtronics' U.S. business group, said his company has received a great deal of inquiries from credit unions in the last 18 months related to CU branding on existing ATMs in the Allpoint network, which the company operates. Updyke said the moves are being made to compete with the big banks on convenience and to eliminate the investment and upkeep of purchasing a new ATM.
"Historically our ATM branding program has seen more attention from large financial institutions, but we have seen many smaller credit unions show interest and the attention has been getting progressively greater in the last year-and-a-half."
Updyke pointed out that research indicates that one of the top reasons consumers choose or leave a financial institution is the number of ATMs the bank or credit union has. "If a small credit union can add five or 10 more ATMs, they have a much better chance competing today."
Updyke would not disclose costs for branding an ATM, but said, "When you look at capital acquisition costs and ongoing care and feeding of an ATM, it's a low-cost way to expand your ATM operation."
