CLINTON, Md. -- The $182 million US Postal Service Federal Credit Union has taken the unusual step of outsourcing the provision of ATM services in five branches to Select-A-Branch ATM Network.

Select-A-Branch uses a proprietary software system to present cardholders from participating institutions with the same ATM interface they would face if they were using one of their institution's own ATMs. The move will effectively mean that USPS FCU will be able to both attract more use to their branch ATMs from cardholders from other Select-A-Branch participating organizations while still presenting their members with the CU's own ATM interface.

"Outsourcing our ATM offering was a big step for our organization," said Steve Cimino, an executive vice president for USPS FCU. "But the S-A-B model presented such a unique shift in the ATM business that it was a profitable step for us to take. And since USPS FCU screens remain branded in our look and feel, there is no confusion to our existing card holders."

Aside from Select-A-Branch's standard customer service and brand extension benefits, outsourcing the ATMs eliminates maintenance costs. And, since the network participant banks and credit unions drive traffic to Select-A-Branch locations, USPS FCU can expect to turn what has been traditionally known as a cost center into a profit center, the network said.

No one from the CU was available to comment further about the ATM decision, but executives from the ATM network celebrated the innovation.

"Entering the out-sourcing market is a logical step for both S-A-B and USPS FCU," commented Dan Gardner, CEO of the ATM network. "The ATM member experience for USPS FCU cardholders remains essentially the same, while cardholders of other institutions now have an added incentive to do their ATM banking at USPS FCU locations."

"Banks and credit unions know that ATM services are key to customer retention," said Dan Stechow, the network's chief operating officer. "Yet, as average ATM transaction volumes continue to slowly decline, those same organizations are finding the channel more and more costly to maintain. S-A-B offers those organizations a way to reduce costs, increase revenues and maintains--or even improve--the branding and marketing messages their card holders experience. We're already entertaining multiple outsourcing inquiries from other institutions. We see this as the tip of the iceberg."

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