Now more than ever, having a focused ATM strategy is critical.For example, consider the geographical challenge. When credit unionmembers need additional surcharge-free ATM access in a specificpart of their state, yet don't require access throughout the entirestate, how to provide the service and manage cost is an importantchallenge that credit unions face. How does the credit union managethose costs? Does the credit union have an ATM strategy that isflexible and customizable? Where does a credit union findflexibility and customization to solve the challenge?
If we start with the premise that credit union members view ATMs asan asset and that they help attract and retain members as well ashelp credit unions remain competitive with other financialinstitutions, how do credit unions create an ATM strategy that is apositive and integral part of their business model?
While a variety of ATM options are available to credit unions, suchas deploying their own ATMs, joining a network (or a hybrid of thetwo), joining multiple networks or partnering with an independentsales organization, building a bridge between the credit union'sbusiness model and their members' needs is the first step indelivering optimal ATM success. Directly addressing members' needsincreases retention for credit unions. However, ATM strategies mustalso serve the credit union as a whole and preserve its longevityin an evolving marketplace. The ultimate question is-what mixserves a credit union and their members best?
The underlying current of all of these considerations isflexibility and customization. Therefore, the ability to pick andchoose what options would most benefit a credit union and itsmembers must be considered before implementing an ATM strategy. Theright network can be a valuable partner for a credit union in thisprocess. An honest and thorough analysis can help all parties atthe table clearly understand how to achieve the highest level offlexibility. The network's ability and willingness to customize anATM strategy for a specific credit union's member needs within itsexisting ATM structure should be a critical component to realizingpositive results. A successful ATM strategy is extremely importantto a credit union's goals and can be a significant contributor toits operating philosophies.
Flexibility can be exemplified in many ways: branding programs,geographic segmentation of ATM locations, surcharge-free access vs.nonsurcharge-free access as examples. Many other options are alsoavailable for consideration, but it is up to each individual creditunion to evaluate how those options mix with member needs.Customization and flexibility are the keys to providing value tothe credit union and delivering positive results to its bottomline.
Credit unions should also seek ways to implement ATM strategiesthat work to incorporate point-of-sale programs, which are thefastest growing dominant transaction sets and positively serve agrowing number of credit unions. Strategies can be implemented thatprovide ATM customization and also increase POS interchange incomewhile factoring trends in member behavior into the equation aswell. The end result is a strategic mix of elements that align theneeds of credit union members along with the credit union.
Today, more than ever, every business decision that a credit unionmakes needs to be carefully weighed. For example, the amount ofindividual attention and customization a network is willing toprovide a credit union is a leading indicator in how anetwork-credit union relationship can support positive growth andattract and retain members. It is also an important principalcomponent of a successful ATM strategy, which is beneficial atevery level.
Every member a credit union can attract or retain has a significantimpact on the bottom line. Credit unions must consider theiroptions carefully, and choose their options wisely. Doing so willhelp establish a winning ATM strategy, build the bridge and set apath for success.

Jim Gowan is executive vice president and chief operatingofficer for Credit Union 24. He can be reached at 877- 570-2824 [email protected]