ATM As a Service – Is this a viable alternative to owning ATMs?

As I talk to some of the hundreds of customers that we have sold ATM’s to, I always ask about pain points and how we can help make them go away.
Inevitably, I always hear about the pain of Windows 7 migration and the looming EMV challenge. Matching the processor and their certification schedule with the need to turn on various functions is also a major problem. Many of our customers rely on us to manage all of these issues for them and we take that as an honorable and challenging role.
That leads me to a thought: how can we remove some of or even most of the pain? One option, though not for everyone, is ATM as a service. The basic concept is that we replace the customer’s ATM’s with new ones, run them on our own processor, and provide services for a monthly fee.
While ISO’s have been placing retail ATM’s for years, we are now seeing several versions of ATM placements with Financial Institutions. The needs and the deliverables are clearly different.
Some clear needs of Financial Institutions that Retail does not have:
• Daily reporting and reconciliation (These are still their customers)
• Regulatory Compliant Coverage (Reg E, PCI, Etc.,)
• “On Us” and “Off Us” customer transaction flows.
There are obviously more but this is a start. In some cases, we have found that all this can be provided and more for less than the Financial Institution’s current cost of ownership.
While this takes care of some customer pain, it also puts us in firm control using a common processor that can certify EMV before installation, allow for common Customer Deploy-able Images and push down updates because it is all on our communication line.
It this for everyone? No. For an institution with limited resources, or a real desire to reduce their resources dedicated to the ATM channel, though, this can be a compelling solution.
If you are interested, we are happy to have that conversation.