I have a guilty pleasure for cheaply-made films with terrible concepts. No, I’m not talking about the new Star Wars trilogy. I am talking about the ones you often find towards the bottom of the horror section on Netflix, titles like Zombeavers and Velocipastor which are leagues above The Rise of Skywalker. What I love about these films is that they take a truly terrible idea and double down on how bad it is. And through this process, they make a movie that is almost… good? There is no doubt you get what you bargain for, which is not true in all aspects of life. One aspect, which we are all too familiar with here at Equips, is ATM outsourcing. As discussed in a previous blog, there are a lot of benefits to ATM outsourcing, but what are the drawbacks? What are the unexpected consequences to your branch?
Why Do Banks Outsource their ATMs?
The answer to this is simple: there are a lot of moving parts when it comes to managing the upkeep of a fleet of ATMs. Between replenishing cash, software updates, the armored vehicles, it is no wonder a bank or credit union might choose ATM outsourcing. Many larger banks have entire teams of employees dedicated to managing these fleets. However, it is not uncommon for these larger enterprises to choose ATM outsourcing if it is less expensive than keeping employees on the team. This is very unfortunate for their loyal employees. On the other hand, smaller banks and credit unions often have only one or two employees that manage their ATM fleet. This usually isn’t their whole job either—often times they are facilities managers and other important roles in the organization that take up this extra responsibility. When managing the ATM fleet becomes too time-consuming or distracting, they outsource.
Banks and credit unions typically make the decision to begin outsourcing towards the beginning of a new upgrade cycle where an important decision has to be made: upgrade or replace. This is NOT an easy decision to be made. On one hand, you can upgrade your current ATMs to have the latest operating systems, the latest way to accept payment, and all the other fun bells and whistles that come out every three years or so. On the other hand, you can elect to replace your entire fleet of ATMs. There’s nothing like a fresh start, after all. But what if your branch could use new ATMs that already had all the latest features with an extra bonus—you don’t have to manage them yourself.
Sounds too good to be true, doesn’t it? The managers who elect for the ATM outsourcing option don’t always recognize is that there are some drawbacks that come with it. For starters, when you do go the outsourcing route, you relinquish all control over your fleet because you no longer have ownership. That might not sound too bad, but what if the ATM experiences unplanned downtime? Now that you no longer have full control over the machine, you are completely reliant on somebody outside of your company to recognize the error and take care of it. Odds are, somebody from your organization is going to recognize this and act first… if only they were in your control. That is why we believe it is not wise to not sign a 5-7 year contract that gives control to somebody else.
The other major drawback is this: when you outsource your ATM fleet to a third party, you outsource every ATM-related service, including those you could easily do yourself to save time and money. For instance, you might only need a service provider to perform maintenance, upgrades, and other advanced services. You are perfectly happy and able to perform preventative maintenance and restock cash on your own. Nevertheless, you will have to pay for these services when you outsource, and they will be expensive. Odds are, you don’t need every service that an ATM management company provides, nor do you want to pay for them.
If I had to guess, your bank or credit union is looking for a solution that allows you to retain full control over your fleet while also being able to free up some of your own time by outsourcing specific tasks to trained service providers. Let me guess, you also don’t want to be locked into a long-term agreement. Equips has taken all of this into consideration and has the solution for you. There are two aspects to this solution: equipment coverage and our CMMS, Equips. We offer custom coverage plans for your ATMs (and other equipment too, of course) that include most services that you would otherwise outsource to a third party. When it is time for maintenance, simply place a service request in Equips. We will handle the billing and dispatching of the service provider of your choosing. Because all of your equipment data can be stored in Equips, placing a service request takes as little as fifteen seconds.
For more information on how Equips can provide you a better ATM management solution, be sure to talk to one of our awesome solutions advisors. They are friendly, knowledgeable, and passionate about helping you do your best work. Until next time, friends!
Equips is revolutionizing how Banks and Credit Unions manage, maintain, and protect critical branch equipment. Equips can leverage a network of 500+ vendors, experts at Equips help Financial Institutions respond to equipment problems quickly in one place: Equips. Active management allows Financial Institutions of all sizes to improve operational efficiency, cut costs, and streamline equipment inventory and vendor management. Our groundbreaking solution provides clients across 45 states with better insight and transparency into their critical equipment and enables employees to do their best work. To learn more visit equips.com.