Star Banc Corp. has signed a three-year, exclusive agreement to purchase automated teller machines form Fujitsu-ICL Systems Inc., the nation's third-largest supplier of ATMs.

The agreement is valued at approximately $6 million, according to Fujitsu officials.

Under the terms of the contract, the Cincinnati-based bank will purchase approximately 100 ATMs a year, to be installed in branch and off-premises locations in Ohio, Indiana, and Kentucky.

Also included in the purchase are administrative and maintenance services, such as cash deliveries, paper replacement, and hardware repairs.

The contract is the culmination of a relationship Star Banc began with Fujitsu several years ago. According to Robin Nenninger, director of non-branch delivery, the $7.8 billion-asset bank began a pilot of the company's ATMs in 1991, when six units were installed in branches and other locations.

Positive Response

Customers responded well to the ATM's color graphics and postage-stamp dispensing capabilities, said Ms. Nenninger.

The bank continued to buy ATMs from Fujitsu on a sporadic basis, and customers continued to react positively, she said. As a result, bank officials decided to buy exclusively from Fujitsu, replacing Diebold Inc. and NCR Corp. models.

The Fujitsu partnership is part of Star Banc's aggressive campaign to deliver more services through ATMs, and to provide increased convenience by placing ATMs wherever customers are, said Ms. Nenninger.

In addition to 200 branches, the bank has 74 off-site locations, and plans to increase the number to 100 by the end of the year, she said. Among the sites are shopping malls, 36 WalMart stores, and the Cleveland Zoo.

Ms. Nenninger said that Fujitsu is flexible and has responded quickly to the bank's objectives, adding that bank officials anticipate an ongoing relationship with the company.

The decision has major significance for Fujitsu-ICL, said Ron Omohundro, vice president and general manager of the company's financial systems division, based in San Diego, "Any time you're able to go into the competition's backyard, that makes a statement in itself."

Fujitsu's worldwide market share of full-service ATM and cash-dispenser shipments in 1993 was 10.2%, according to the Nilson Report newsletter. The national provider is looking to increase its market presencce throughout North America, to become a "total player," said Mr. Omohundro.

According to David Baker, director of financial systems, eastern region, the agreement with Star Banc gives the company a "major foothold" in Ohio and "turns the heads of other potential customers" in that state and the surrounding region. "It illustrates that Fujitsu has become a major contender," he said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.