NCR Signs Outsourcing Deal With Co-Op Financial Services

NCR Corp. today announced the signing of a three-year ATM-outsourcing agreement with Co-op Financial Services that enables Co-op’s credit-union members to lease instead of buy new ATMs to reduce participating credit unions’ capital expenses. NCR will lease ATMs to the credit unions through GE Capital, a Norwalk, Conn.-based leasing company, says Bill Allen, NCR marketing director. “Leasing ATMs is a lot more attractive for some financial institutions because leasing agreements are not carried on the books as a capital expense,” he says. Co-op ATM Managed Services, a unit of Rancho Cucamonga, Calif.-based Co-op Financial Services, will manage credit-union members’ leased ATMs. NCR, which is based in Duluth, Ga., also will provide first- and second-line maintenance on all of the leased machines. “If the ATM breaks down, we fix it,” Allen says. Credit unions’ financial conditions played a key role in the two companies signing a leasing agreement, Allen says. Co-op operates a network 37,000 ATMs and nearly 3,000 credit unions are Co-op members. “This approach to ATM deployment and management will be attractive to credit unions seeking to outsource these functions as capital expenses grow with the size of the ATM fleet,” Co-op said in a statement. NCR will promote its SelfServ line of intelligent-deposit ATMs to the credit unions when the outsourcing program begins in early 2010, Allen says.