SAB In the News
Every ATM Is The CU's ATM - December 22, 2008
By Frank J. Diekmann - Credit Union Journal
KING OF PRUSSIA, Penn.-An upstart ATM network that essentially re-brands itself as the member's credit union's ATM when being used said it is poised for even greater growth.
"We are one of the few opportunities for credit unions to get their brand out, generate income and save the cardholder money," said Daniel C. Stechow, COO with Select-A-Branch, which operates an ATM network of the same name. Using proprietary software, when a member of a participating credit union inserts their ATM/debit card in a Select-A-Branch ATM the machine immediately reconfigures the monitor to appear identical to that of the credit union's proprietary ATM, including any marketing messages.
The network is surcharge-free
"We provide a free transaction wrapped in the credit union's own brand," said Stechnow. "The implication is you are really at your branch and not at a third-party's terminal."
Even in the case where a credit union or bank absorbs a surcharge for the member/customer at a foreign ATM, that member/customer is still exposed to the marketing message of a rival during the transaction, said Stechow.
Select-A-Branch is now in the process of rolling out 19" full-motion video panels above all of its machines that will include rotating images of the participating financial institutions in the network, along with messages from the merchant/provider of the location of the ATM.
Nineteen financial institutions are currently participating in Select-A-Branch, 14 of those are credit unions. It has 170 locations for the Triton RXL 5000 ATMs, using Fiserv as its processor, and Stechow said several announcements are pending that will greatly expand the network. It has recently added 60 McDonalds franchises in New York City, "T" stations along Boston's commuter trains, and the Pennsylvania Turnpike. Stechow said its machines have been averaging a three-to seven-time, year-over-year increase in usage due to a combination of marketing and awareness. "A lot of smaller financial institutions do not have a marketing department; we offer some things to get them up and running."
Stechnow said pricing does not put smaller institutions at a disadvantage, as costs are per-transaction with the financial institution reimbursing Select-A-Branch. "Credit unions really make out because small card bases pay small ATM fees," he said. There is no set-up fee or minimum usage fee. Stechow added the only "rigid rule" is that every participating financial institution must be available at every ATM.
Stechow said the company would like to see some of the other established networks participate in Select-A-Branch. "This is a win, win, win situation for the financial institution, the customer or member and the merchant."
The merchant also gets a piece of the interchange fee. Merchants, for instance, can deliver a coupon with the ATM receipt for some product or service discount, as Select-A-Branch can change the ATM and video monitor message at any time. The institution can change its message once per quarter.
Stechow called ATMs one of the "great examples of underdelivery in decades" when it comes to marketing potential. "We offer the opportunity to switch the dynamic and deliver on the promise," he said.
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