By Joe Woods
The ATM sector continues to evolve. Just over the past three years we’ve seen two ATM ISO & outsourcing companies shut their doors due to criminal activity, one top ATM company file chapter 11 bankruptcy and another top ATM company split into two. And these are just the headline events. Many other challenges have added to a complex industry wrought with change.
One key challenge is staffing. Employment challenges are growing nationwide within certain sectors and industries. Coming out of the Covid pandemic there was a shift in employment. Unemployment was not increasing, but the percentage of people no longer engaging in the workforce was increasing. So, there were people choosing not to work, whether due to low pay, poor environment, job satisfaction, etc. And the armor/CIT and service industry were part of the affected areas of employment.
Many field technicians and armor service roles are suffering from high turnover rates. This is generating inconsistent performance at best. What’s more, there are quite a few start-up companies in the industry. Many of these startups cannibalize employees from existing firms in an attempt to build a foundation for their organization. While this may look good on paper, it tends to thin out strength and performance across all providers.
Most banks find it difficult to manage their ATMs due to the complexity. Even the smallest of programs needs three to four contracts with different providers along with internal staff owning certain responsibilities. At the same time there has been a significant increase in the technology and software within the ATMs. This creates challenges for bank staff that are typically tasked with managing an ATM program in addition to other areas of responsibility.
ATM solution providers are not immune to these issues of staffing, service, and growing technology. It has become increasingly important to choose a partner that has the Depth of knowledge, strong technology and an ability to work with different service and technician groups for optimal performance. Finding an organization that has the flexibility to maneuver and adapt to service issues is critical.
Many banks, regulators, and insurance providers have become keenly aware of this in recent months. From a due diligence perspective, clarity needs to be provided by these ATM operators to ensure they are operating appropriately. Banks can expect a line of questioning related to this during future exams and will need to be prepared.
About the Author
Joe Woods is Senior Vice President, Marketing & Partnerships with Dolphin Debit Access, which offers a complete suite of ATM management services, from routine maintenance and monitoring to cash management and compliance updates. He can be reached at jwoods@dolphindebit.com.