The nation's credit unions may be looking at a $200-million bill over the next 18 months to upgrade their ATMs. The CO-OP Network is projecting the expenditure will be necessitated by the need to make capital investments in ATMs in order to comply with several new technology requirements and to comply with the Americans with Disabilities Act.
"Credit unions currently own more than 20,000 ATMs, half of which participate in CO-OP Network, and the mandated changes/product upgrades confronting every ATM owner range from $1,000 up to $35,000 per machine," said Robert Rose, CEO of CO-OP Network, the nation's largest network of credit union ATMs. "During the next year-and-a-half, when most of the mandates come to fruition, credit unions could be facing $200 million in potential ATM capital investments."
The CO-OP Network said during the past year shifts in the ATM industry, ranging from ATM saturation to mandatory upgrades, have necessitated credit unions alter their business strategies to help minimize unexpected capital expenditures. CO-OP has published a new white paper, "Managing ATM Capital Investments: Strategies for Credit Unions," which seeks to offer guidance on managing pending ATM-related issues.
"Triple DES (data encryption standard) technology, EPP (encryption pin pad) and ADA (Americans with Disabilities Act) compliance are facts of today's ATM life, and the move toward new technologies, such as the 'Web-ATM,' are modifications credit unions will have to incorporate to deliver advanced functionality that will ultimately enhance member service," the white paper states. For more info: www.co-opnetwork.org.
