SALT LAKE CITY - Credit unions, eager to raise their public profile in high traffic areas, have won another skirmish in their campaign to replace banks in the installation of ATMs at the nation's airports. The latest victory-undertaken by a coalition of four CUs, three of which have a membership base of airline employees, and the CO-OP Network of Ontario, Calif.-came the week of April 24 with formal announcement of a five-year contract to operate 10 ATMs at the Salt Lake City Airport. The machines are to be installed in June. CUs participating in the venture include: American Airlines Employees Federal Credit Union, Dallas; Mountain America Credit Union, Salt Lake City; Delta Employees Credit Union, Atlanta and Western Federal Credit Union, Los Angeles. The ATM project, which has been under wraps for months while final negotiations took place among the participating CUs and the Salt Lake Airport Authority, underscores the cooperative "model" that CUs can use across the country in expanding "economic ventures that benefit all credit union members," said a prepared news release. Terms of the contract were not disclosed. The alliance of CUs and the EFT-based CO-OP Network in California for airport ATMS was initiated late last year following a decision by the Salt Lake Airport Authority to consolidate its bank ATM installations in one vendor. Two of the state's largest banks, First Security Corp., and Zions Bancorporation--both of which recently discussed and called off a high profile merger-have individual ATMS in the airport as does Mountain America and Western. It was understood Zions Bank will retain a small branch in the airport. But allowing a CU cooperative to run the ATMs was being hailed as a coup by executives of the participating CUs as well as the leadership of CUNA which noted that the Salt Lake venture provides wide public exposure to CUs in time for the Salt Lake Winter Olympics in 2002. Mentioning the contract victory in an April 14 speech at the annual convention of the Colorado League in Colorado Springs, CUNA Chairman David Maus called the Salt Lake venture "significant" because it spreads further the idea of CU branding and "name recognition" when customers find themselves dealing with CUs in handling ATM transactions. "I can see the advertising byline right now - if you're going to the Winter Olympics, you better have your credit union ATM card because the Salt Lake Airport won't accept the bank ATM without a surcharge," quipped Maus. He said CUs might also borrow the slogan about CUs being "everywhere you want to be and people are more important than profit." Maus' own credit union, Public Service Employees Credit Union of Denver, of which he is president, raised the hackles of both Colorado and big out of state banks last September when his CU won a surprising bid to service all 15 ATMs in Denver's International Airport and establish a shared branch there. (See related story page 25.) That contract began running March 1. Previous operators of Denver ATMS had included Bank of America/ Nationsbank, KeyBanks and Wells Fargo. A key figure in spurring joint venture operation of CU ATMs at airports has been John Tippets, president and CEO of the $2.5 billion American Airlines Employees Credit Union whose CU has so far been unsuccessful and teamed up with other airline CUs to win a contract at the Dallas and Chicago airports. Tippets has vowed to resubmit his Dallas proposal while United Airlines Employees Credit Union in Chicago said its American/United proposal at O'Hare is still pending with airport and city officials. Joining in that proposal are LaSalle Bank and a small minority institution, both headquartered in Chicago. But in winning the bid at Salt Lake, Tippets said the venture underscored the co-operative spirit that CUs have in working together "as an alliance." He said also the "bid for the concession is a defensive move" since CU members "are at airports" and CUs should be following their members to serve them. "We have to be in airports," emphasized Tippets. The idea of CU-run ATMs in the airport also gives the industry "the visibility we've been seeking with eligible consumers that are not currently" CU members, noted Joe Williams president and CEO of Delta Employees CU. The alliance can also prove to be an economical one for CUs since it can reduce operating costs, commented Gordon Dames, president and CEO of Mountain America. Dames, who has worked closely with Tippets of American on CUNA activities and also spurred the co-op concept in Utah, represents the only CU without a membership base of airline employees. Mountain America, with $711 million in assets, has a membership core of telephone, electric utility and postal employees. workers. "The bottom-line is that members of credit unions that belong to the CO-OP Network or their credit union partners will receive increased service at no increase in costs," said Dames adding the alliance "continues the expansion of surcharge-free ATMs to members, not only of Mountain America, but members of CO-OP Network member credit unions everywhere." Added Tippets: "If there is a gain, we'll share it, If there is a loss, we'll love to share it." Tom Stewart, president and CEO of the $338 million Western Federal in Los Angeles, said the Salt Lake project represents a new "opportunity" for CUs to "expand their presence beyond traditional delivery systems." The alliance lets CU add "a cutting edge value added service to members." The news release noted that the ATMs will be managed by Mountain America with CO-OP Network providing processing service. CO-OP said it expects to be working with other CUs across the country on plans for similar ventures at retail stores as well as in airports. Irene Whitcomb, senior vice president of communications at CO-OP, said there are two other airport ATM projects "in the works now" but declined to identify the CUs or the cities. She said the Salt Lake City project and its impact on the national CO-OP network and its 560 client CUs in 33 states was to be discussed at the annual shareholders meeting in Las Vegas this week. The venture is also due for prime discussion at the annual meeting of the airline CU association in Vancouver, B.C., also the week of May 1. The news release noted that under the CU project ATMs will be dispersed in five concourse areas, close to food courts and news/magazine retailers. Previously, the bank of ATMS was located in one spot in the airport terminal. The concourse areas will have more foot traffic than the current location. The news release also stressed the cooperation among the technical staff of the four CUS. Beverly Willms , supervisor of electronic services for American CU, said once word came of the Airport Authority's "request for proposal" CUs acted swiftly and the package was prepared "in only three weeks." Joining Willms were Carol Pugh, Delta's vice president of e-services; Ed Campanos, vice president and COO of Western, and Allison Richeson, vice president of support services for Mountain America. The city's Airport Selection Committee, said the release, recognized the professionalism of the CU bid and hailed "the strong message of resolution on the part of credit unions to make the project a successful one." The Salt Lake project will include nine Diebold 1064ix ATMs and one Diebold 1062ix that will accept deposits. Like other CU executives conceding the uphill fight CUs have in winning airport contracts, Mary Olson, vice president of marketing at Delta Employees CU, noted that large banks are well entrenched at some of the nation's biggest airports including LaGuardia, Boston and Orlando, three cities Delta would be eager to have public access ATMS. Delta, like other CUS, does operate ATMs in the airports but they are in areas accessible primarily to airline employees rather than the general public. First Union, she noted, apparently has a lock on Atlanta and "who knows" when a CU alliance can submit a successful bid there. -
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