Offsite Retail ATM Points of Presence:

A Key Component Of Your ATM Strategy

Is Your ATM Strategy Meeting Your Business

Requirements and Goals?
Whether you’re one of the top 10 financial institutions (FIs) in the U.S. or a
bank or credit union providing services within the local community, ATM reach
is a key component of your overall business strategy. After all, your ATMs are
a key provider of cash to your cardholders. And cash, instead of diminishing
in popularity, as prophesized by many pundits, is holding its own* alongside
other payment options such as digital and mobile. Consumers are
determinedly using it as a simpler, convenient and faster payment option for
everyday needs.

For a larger financial institution, owning and operating an ATM fleet requires
considerable resources – both human and financial – that are increasingly
harder to provide when a wider, offsite ATM reach strategy is needed to
support a large cash access footprint for your customers or members. For
smaller financial institutions with few branches, ensuring retention of
cardholder accounts requires, in part, access to an extensive ATM fleet. How
do you overcome challenges like these?

Non-Bank, Offsite Retail ATM Points of Presence

Non-bank, offsite retail ATM points of presence is a marketing strategy that
pairs a financial institution with popular retailers, allowing the institution to
self brand ATMs at the retailer’s locations. In addition to extending reach and
presence, the strategy enables the financial institution to provide
surcharge-free cash to its cardholders – which they can then use to purchase
items in the store. For example, ABC Bank might decide to extend its ATM
points of presence within the local area by branding ATMs in specific retail
stores located in that area.

Or XYZ Credit Union may want to brand ATMs at specific retail stores in an
entirely different state than where the majority of its members are located –
but where it has a sizeable demographic of other members that desire access
to surcharge-free cash and whose accounts the credit union wishes to retain.
Or consider a university-based credit union that wishes to retain the accounts
of its alumni, or a credit union in the Upper Midwest that sees its snowbird
members flock to a Sunbelt region for the winter.

onatm@cardtronics.com
cardtronics.com
832.308.4000
51% of respondents use ATMs
more than once per month
Mercator Advisory Group CustomerMonitor Survey Series,
Banking and Channels, 2011–2016

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Retail ATM points of presence enable a financial institution to brand topper
panels or digital topper screens and ATM screens with custom colors, logos
and graphics. The financial institution is also able to brand ATM receipt
headers, retail store window signs, decals and more within the store, when
those opportunities are available at a particular retail location.

Retail ATM Points of Presence: The Business Case

Non-bank, offsite retail ATM points of presence is a marketing strategy that
pairs a financial institution with popular retailers, allowing the institution to
self brand ATMs at the retailer’s locations. In addition to extending reach and
presence, the strategy enables the financial institution to provide
surcharge-free cash to its cardholders – which they can then use to purchase
items in the store. For example, ABC Bank might decide to extend its ATM
points of presence within the local area by branding ATMs in specific retail
stores located in that area.

REDUCTION IN COSTS
• No capital investment is required for ATM purchases
• Operation costs are reduced, because ATM management
and operations become the responsibility of the ATM
provider
• Branch expansion requirements may be mitigated,
reducing the need for additional capital and staffing costs

EXTENDED ATM REACH

• FI-branded ATMs are located at popular, high traffic retail
locations such as CVS, Walgreens, Costco, Target and more -
locations where cardholders regularly shop
• Cardholders experience convenient and fast access to cash
at numerous locations
• Cardholders enjoy surcharge-free access to their cash at a
wider choice of ATM locations

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 EXTENSION MARKETING
• Acting as mini-billboards, branded ATMs give cardholders
the perception of extensive ATM availability – helping to
retain existing cardholders and garner new ones
• Customized ATM screens, as available, can relay marketing
messages to cardholders about the FI’s other services
• Branded ATMs provide an extension to current marketing
strategies for creating awareness and driving new business
• Branded ATMs offer a soft market entry into a geographic
area to which the institution may later expand with branch
locations

REFOCUS ON CORE BUSINESS

With an ATM provider operating and managing offsite retail
ATMs, the financial institution doesn’t have to devote
resources to day-to-day ATM management, technology
upgrades and regulatory and compliance requirements or
deal with idle cash or settlement and reconciliation.
Management’s time is freed up to focus on and drive the
institution’s core business objectives, especially growing its
cardholder base.

IMPROVED COMPETITIVE POSITIONING

With an extended fleet of branded ATMs made available to
cardholders, your financial institution is better positioned to
compete with larger FIs that have considerable-sized ATM
fleets of their own.

ATM Providers: Finding the Right Fit

Finding a provider that is a good fit with your business is essential when you
elect to use a third-party provider to extend your ATM points of presence.
After all you are releasing your brand to the protection of someone else. It’s
important, therefore, to select an experienced provider with the expertise
amassed from both large and small ATM branding deployments – one that
has been in business for many years and is financially stable. At a minimum,
an experienced provider should offer:

• High visibility brand exposure in premium retail locations

• Surcharge-free access for your cardholders
• Intra-transaction marketing opportunities to all ATM users

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In addition to the above, a host of other criteria may be desirable. For
example, look for a provider that consistently explores new ATM ideas and
innovations and brings them to market when the time is right.

In spite of the plethora of alternative digital payment options, cardholders

still want and need access to cash to purchase a host of products and
services. Financial institutions can meet that need by providing their own
branch-based ATMs complemented by offsite, retail ATMs custom-branded
with their logo and other marketing messages.

*2016 Cash Survey conducted by Edelman Intelligence and commissioned by

Cardtronics.

About Cardtronics
Making ATM cash access convenient where people shop, work, and live,
Cardtronics is at the convergence of retailers, financial institutions, prepaid
card programs, and the customers they share. Cardtronics provides services
to approximately 231,000 ATMs in North America, Europe, and Asia-Pacific.
Whether Cardtronics is driving foot traffic for top retailers, enhancing ATM
brand presence for card issuers or expanding card holders' surcharge-free
cash access, Cardtronics is convenient access to cash, when and where
consumers need it. Cardtronics is where cash meets commerce.

Copyright © 2017 Cardtronics. All rights reserved. Cardtronics and the Cardtronics logo are
trademarks or registered trademarks of Cardtronics. Other product and service names are
trademarks or registered trademarks of their respective companies.

Two-thirds
of survey respondents indicate that an ATM
located close to home is a primary criterion for
selecting an FI and 43% indicate an ATM located
near to their workplace is important.
Mercator Advisory Group CustomerMonitor Survey Series,
Banking and Channels, 2011–2016