Updated: May 24
Credit unions have a variety of unique relationships with their local communities. That integration often includes partnerships with one or more area employers. But supporting Select Employee Groups (SEG) can be a bigger opportunity than some institutions realize. With the right planning, something as simple as an on-site ATM could attract new members, encourage financial education, and improve member convenience.
How can SEG-located ATMs attract new members?
According to studies from the Federal Reserve, Americans use cash as their primary payment option for transactions less than $25. And the number of cash payments increases significantly for households with annual incomes below $75,000. So, it’s hardly surprising to discover hourly employees are some of the heaviest ATM users.
However, the number of accessible ATMs in the US has declined over the past few years. As machines become more expensive and increasingly less profitable, financial institutions and independent ATM operators are pulling back on their off-premise self-service footprints. This deterioration in numbers often means employees must use their lunch break or commute to visit their financial institution, a local money services center, or a nearby ATM.
Providing on-site ATM access to SEG employees offers a significant advantage for busy working professionals. They can access financial services in a safe location rather than traveling elsewhere. And convenient accessibility lets them grab cash, check balances, and perform other transactions without eating into their personal time.
All this service can easily be combined with a branding package such as an ATM wrap, lighted or video topper, and information sidecars – all designed to provide additional information and build trust within the SEG community. That assurance combined with regular brand exposure helps keep the on-site credit union top-of-mind when non-members are looking for more in-depth financial services.
But an on-site ATM can do more than attract new members with convenience. It can offer new ways to build long-lasting relationships.
A step-up for financial education in the workplace.
Financial education is a big worry for most Americans. A 2020 survey by the National Foundation for Credit Counseling discovered 67% of consumers have anxiety about their finances. Over a quarter (32%) admit they have no idea how to improve their financial situation. A significant portion of Americans can’t answer four or five basic financial literacy questions accurately.
But on-site ATMs at credit union SEGs can offer an easy way to reach out to current and potential members to offer service, advice, and financial literacy programs. Receipt messaging, on-screen messaging, and pamphlet sidecars are just a few ways to reach on-site ATM users. Tools as simple as online calculators and links to budgeting and planning materials can be a big help to those in need.
However, an on-site machine also offers a higher level of visibility and presence with SEG representatives. Human resources, especially, will find such a close partnership with their local institution a real incentive for staff – like low or surcharge-free options and financial access for prepaid card users. And the relationship that offers such attractive hiring incentives can easily lead to additional credit union interactions with employees such as lunch-and-learn and other SEG/credit union partner events.
A big benefit for members.
New members aren’t the only ones to find on-site ATMs a helpful option. In addition to added safety, convenience, and surcharge-free account access, current credit union account holders can have the bragging rights of a present and involved financial partner.
Seeing their primary financial institution’s brand and materials daily will help keep their credit union top-of-mind. But it will also offer significant opportunities to regularly engage through receipt messages, attached literature, and SEG partner events. And members that are regularly reminded of the services their credit union offers are more likely to remember that brand when they are seeking more advanced financial services.
On-site SEG ATMs don’t have to be a burden.
One of the big reasons many financial institutions are cutting back on ATMs is cost and labor. Fortunately, the expense doesn’t have to be an obstacle to placing on-site machines at SEGs. ATM outsourcing offers an affordable and uncomplicated way to provide reliable machines without the burdens of financial liability, time, and regulation.
ATM outsourcing partners own the machines they place, allowing them to absorb responsibility for regulatory and upgrade requirements. In addition, outsourcing partners manage daily operations, eliminating the need for concerns about installation, maintenance, or monitoring. Even better, credit unions who choose to outsource their SEG ATM placements can count on a single vendor partner to handle all their ATM needs – all for one affordable monthly fee.
SEG groups are a unique part of credit union community relationships and institutions that take steps to leverage those affiliations can create big opportunities. Whether the goal is to pull in new members, advance financial education in the community, or provide more member benefits, on-site ATMs at employee groups are a big win for everyone. And, with the right ATM partnership, making the move to SEG on-site convenience is even easier, more reliable, and more affordable than ever before.
Get in Touch!
Email: email@example.com or scan the code below
Lean How Partnering with ATM USA Can Benefit Your Financial Institution
Darren Smith, Vice President, ATM Management
Craig Helmers, Vice President, ATM Management