ATM OUTSOURCINGIADs add Value

Webinar Hosted by: Kahuna ATM SolutionsPresenter: Mark D. Smith; VP of Financial Solutions

Definition: The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual.

What about in the ATM industry?

• ATM Processing Services• ATM Hardware & Software• ATM Parts, Repair & Supply• Customized Marketing & Brand Awareness • Cash Supply & Armored Services• ATM Maintenance & Reporting• ATM Placement & Accelerated Growth• Ancillary ATM & Banking Solutions

What is Outsourcing?

Why IADs?

Hardware and Software Costs are expensive for financial institutions

Average Full-Function ATM can be $30K +• Windows XP to 7 Migration • EMV Migration• Deposit Automation • Vault Cash Services• 1st & 2nd Line Maintenance

Financial Institutions changed focus

On – Line Banking Mobile Banking Reduced Branch Locations Customer Retention

Market Drivers

Why the struggle?

Banks and Credit Unions face extensive regulatory changes Higher service fees drive cardholders away Alternative banking gaining in popularity Mobile banking on the increase On-Line banking acceptance

 Cardholder Retention

To survive, they must capture the next generation• Surcharge-Free Networks• Mobile and On-Line Access• Remote Touch Points• Quick Growth Off-Premise• Brand Expansion

Market Factors

Loyalty, Loyalty, Loyalty

ATMs will always be key touch points for FIs • ATM Locators are powerful tools and drive traffic

FIs increasingly join Surcharge-Free Networks to gain points of access for their cardholders• High-trust ATMs• Cardholder retention is key

Access to Funds • Anywhere, Anytime• Prime locations off-premise

Market Outreach

Merchant & Retail Accounts• Both the FI and IAD want to grow off-premise• Bring the FI the business

BIN Analysis• A valuable service Kahuna provides• Identify key cardholder areas• Identify areas for market growth

Who does the IAD meet at the Bank or Credit Union?• Operations and Marketing Departments

Director and VP level are decision-makers Request meetings to discuss growth strategies Provide BIN analysis and recommendations Case studies

Where does the IAD start?

What are the expectations?

ATM Uptime

ATM Service Response

Parts on Hand

Branding and Marketing Rights

Surcharge-free Access

Prospect Outreach

OutsourcingMarket Considerations

REAL benefits to the FI

Frees up their capital • IAD is the ATM owner/operator (3-5 Year Contracts)

IAD provides parts and replacement components IAD responsible for compliance and mandates IAD provides processing services

Working with a trusted partner• IADs are the true ATM Experts…its what we do• Vast network of partners

Processors, Vault Cash Providers, Surcharge-Free Networks• Local/Regional Service

• Tailored and efficient

Get to market faster!• They are seeking new cardholders

• Expand their brand

Building the Business Case

Compile known costs•Hardware/Software•Shipping•Installation/Rigging•Communications and Consumables

Offer 3-5 year contracts for ATM Placements•Low Monthly Fees•Flexible Renewals•Parts and Replacement •Compliance and Mandates

FI pays Per-Transaction Fee

Spreading the Costs

Ideal opportunity for FI Branding and Surcharge-Free Network Access• Trust/Confidence leads network members and prospects to use that ATM more

often Loyalty to the location is the real benefit to the ATM providers and

merchants Higher Interchange and Transaction Lift are the key gains

Building Loyalty 

FI Marketing far more effective

Getting cardholders to an ATM is important• Surcharge Free Programs gets them there

Offer the FI a branding package that is customized and effective• The ATM is an extension of the FI’s branches

As a follow up to this webinar, Kahuna ATM Solutions will be sending you marketing materials

Excellent tools to encourage an Outsourcing Program for FIs

If you need help along the way

Kahuna ATM offers outsourcing programs • Surcharge-free network program • Branding strategies

What’s Next?

Questions?

Thank you!

Kahuna ATM Solutions www.kahunaatm.com

888-357-8472

Mark SmithVP of

Financial Services

mark@kahunaatm.comP) 770-977-

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