ATM pooling leads to branch transformation

ATM pooling is a process where banks transfer or outsource ownership of their ATMs to a third party. In Brazil, this process can save money and deliver better customer experiences, as Jaques Rosenzvaig, CEO of Tecban, shared during a session at the ATMIA conference held from Feb. 8 to 10 in Orlando, Florida.

With this service, banks can also reach traditionally underserved markets by expanding their ATMs reach.

Rosenzvaig shared several different types of ATM pooling, such as off-site, in-branch, shared branch and ATM-as-a-service.

With off-site, Tecban was able to eliminate 8,000 redundant ATMs for a bank and in turn save $500,000 yearly.

By pooling ATMs at branches, customers from other banks were able to use those ATMs and Tecban could deliver a mixture of hardware to complement the ATM's services.

Pooling is also useful at shared branches, places where multiple banks share the space and can meet the needs of the traditionally underbanked while focusing on other business areas.

Rosenzvaig said one service that can truly transform branches is ATM-as-a-service. With this, ATM operators can move beyond the ATM to deliver a complete solution for branch redesign and management. This in turn can create innovative customer experience driven projects.

As an example of this, Rosenzvaig said that Tecban does more than change the branding of ATMs, it also adds QR codes, dual biometrics, unbanked digital withdrawals and other components.

By outsourcing ATMs, banks can not only reduce costs, Rosenzvaig said, they can also improve the customer experience for all kinds of customers, even the underserved.