Magazine article American Banker

1st Union Adding 500 ATMs to Its Network in Contract with an Outsourcing Firm

Magazine article American Banker

1st Union Adding 500 ATMs to Its Network in Contract with an Outsourcing Firm

Article excerpt

By KEENAN, CHARLES

First Union Corp., which owns the sixth-largest automated teller machine network, is expanding that business in partnership with an outsourcing specialist.

The outside company, Card Capture Services, has installed half the 500 ATMs it will manage for First Union and plans to install the rest by Feb. 28.

First Union would own the machines, which are being placed in stores, and supply their currency. Card Capture is to service the machines, including maintenance and processing, and brand them CCSExpress. The outsourcer also is to manage armored car delivery and accounting.

Card Capture of Portland, Ore., said the deal is the biggest of its kind by a major U.S. banking company and comes as ATM servicing is becoming more of a commodity business.

Adding to the program's significance is that First Union has a reputation for technology leadership. The Charlotte, N.C., company has prided itself on driving and maintaining its 3,700 ATMs, which carry the First Union logo.

First Union executive vice president Al Sale said the outsourcing is a growth tactic.

Card Capture "offered a cost-effective way for First Union to quickly expand an ATM network without the corresponding infrastructure costs typically associated with ATM management," Mr. Sale said at the Bank Administration Institute's Retail Delivery Conference, where the deal was announced.

Mr. Sale said the bank can add to its network faster through partnerships.

David Grano, president and chief executive officer of Card Capture, said the increasing competition and narrowing profit margins on ATMs make outsourcing a good move. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.