ANNE MOORE President Synergistics Research Corp. Atlanta

CUSTOMERS ARE LOOKING FOR

anything to make their lives easier. Special areas, such as casinos, sports stadiums, racetracks, airports, and theme parks, are areas where [customers] are willing to pay a surcharge of $1 or $2. These are good areas for fee revenue.

The consumers who are most interested in new locations are the younger consumers who frequent automated teller machines: 18-34 year olds, ATM junkies. They want them wherever they are.

There are other locations where you could go: gasoline stations, fast-food restaurants, rest stops on the highway; as well as hospitals, colleges, and train or subway stations. Grand Central Terminal [in New York City] has a lot of ATMs.

Growth of ATMs will continue for the next four to five years, but will decrease after that because of the growth of debit cards and prepaid cards.

CRAIG ZANDER Senior vice president One Valley Bank Charleston, W.Va.

WEST VIRGINIA IS A LITTLE BEHIND IN

deployment of automated teller machines compared to the rest of the country. We're at the point now where every branch in our market should have an ATM. To me it's the core group of services you have to provide to customers.

In addition we target high-volume locations in major shopping areas, because we feel we have to generate a minimum of 5,000 transactions a month to justify deployment. Those tend to be in shopping malls, supermarkets, and busy strip malls.

The third place is major employers in our area. ATMs on site make it a lot easier for employers to convince workers to accept direct deposit of their paychecks. If employees aren't running out to the bank on payday, it can be cost-effective to the company to subsidize the machine on site. Subsidies vary depending on the volume of the machine and mix of transactions. We look at the entire relationship we have with the company.

GORDON BRAMWELL Vice president Midlantic Corp Edisonb, N.J.

YOU TRY TO LOOK AT HIGH-VOLUME

locations - any high-traffic area where you can serve customers. You can complement other [bank] services with bank-at-work programs. Banks are offering direct-deposit payroll services in order to increase employee productivity and eliminate the time necessary to cash a check. To complement the direct deposit pay program, automated teller machines are important. A lot of large companies can eliminate cashier operations for cashing checks and credit card advances.

With riverboat gambling, a lot of states are getting into gambling. Casinos are a place you'd want to put ATMs.

With the greater acceptance of point of sale, debit, and smart cards, the need for ATMs may not be as great. There's always going to be a need for cash-dispensing ATMs, but new technology will curtail their growth.

NEIL KLUSMANN Vice president, marketing First Interstate BancSystem of Montana Inc., Billings

THE MARKETS WE OPERATE IN ARE

saturated. All the good locations are typically taken. There's a highly competitive bid situation when contracts expire. You see banks bidding against each other for grocery store chains and convenience store chain locations.

Typically you need a high-volume retail location where people are in a buying behavior. We used to have [an ATM] at Billings airport, where a million people a year pass through, but people weren't in a buying behavior. The volume didn't support [the ATM.]

In our market, high-volume retail locations - malls, grocery stores, and universities -- are very good because the younger market tends to use them. Truck stops along the interstate highway have worked out very well.

CATHRYN BOND Principal C. Bond & Co. Hartford, Conn.

JUST BECAUSE A BRANCH HAS AN

automated teller machine doesn't mean it's being used to capacity. If the goal is to move people from using a teller line to using the ATM, I would put the resources into persuading those teller line users on the benefits of using an ATM wherever it's located.

Imagine what the cost savings would be if [financial institutions] didn't need a teller line. Eighty percent of teller transaction volume can be off-loaded to some form of self-service - ATMs or banking by phone. You could reduce staff, upgrade staff, and deliver grade A top level service to customers that do enter the branch. That's the real driving factor in why financial institutions are investing in marketing ATMs. They are starting to realize operational cost savings.

GAYLON HOWE JR. Senior vice president Wachovia Corp. Winston-Salem, N.C.

WHERE WE'RE FOCUSING CAN BE

divided into two areas. The first is commercial locations with high volumes, like airports, malls, and shopping centers. We're looking at those primarily for transaction volume and market presence - for advertising as well as customer convenience.

The second area we're looking at is large companies, where we can develop relationships with both the corporation and the employee base. As the banking industry changes and as convience and availability to people's accounts and account information become more important, these types of strategies should be very successful.

CHIP CARLISLE Executive vice president First Interstate Bank of Texas Houston

AT FIRST INTERSTATE, OUT ATM

strategy is focused on providing convenient and safe access to funds, an extension of our commitment to customer service. Our ATM installations inside our grocery store branches are the classic examples of this philosophy.

More recently, we have expanded our network to include other venues where people congregate, such as our new installations at the Houston Astrodome and the Texas Rangers' stadium. We are exploring opportunities for ATM service at hospitals and other public facilities.

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