Triton Systems, Inc. announced Monday at the Bank Administration Institute’s “BAI” Retail Delivery Show strong early orders for its Mako Cash Dispenser, an innovative new cash-dispensing automated teller machine that will be available in the first quarter of 1999. According to Ken Paull, Triton Systems’ Vice President of Sales and Marketing, high demand for the Mako Cash Dispenser validates Triton’s strategy of providing a new kind of ATM that makes it feasible for banks to operate ATMs in lower volume locations. The Mako ATM is less expensive than other alternatives — both in terms of initial investment and ongoing maintenance — yet it has high-end features and is “advertising ready” for banks wishing to create new revenue streams by advertising on their network of ATMs.
As the leading provider of cash-dispensing ATMs for off-premise locations, Triton developed the Mako ATM in response to several important banking industry trends. First, more ATMs than ever before are deployed in off-premise locations, 84,000 as of August 1998 (Bank Network News survey). Because ATMs are available to consumers in an increasing number of locations, overall transaction volumes per ATM are declining. Bank Network News (September 11, 1998) indicates that monthly transactions per ATM declined 22.28 percent between 1996 (the year surcharging was allowed) and 1998. As a result, banks are looking for ways to profitably own and operate ATMs in lower volume locations.
“Triton pioneered the off-premise ATM market four years ago with the introduction of the first true cash-dispensing ATM based on dial-up transmission technology,” said Mr. Paull. “Now we’re working to make locations where daily foot traffic is relatively low (500 people or fewer) an attractive market for banks.”
Other important trends are emerging as ATMs proliferate, according to Mr. Paull. Some customers are avoiding fees by opting to use ATMs without associated surcharges, and many off-premise ATM owners are beginning to reduce or eliminate fees as a competitive tactic. Many banks are also concerned with legislative backlash to ATM surcharges. Even taking these uncertainties into account, surcharging will continue to be an important revenue source. It may, however, become less reliable as a sole means for banks to finance off-premise ATMs. To compensate, banks are looking for ways to become less dependent on surcharges as their only revenue source for profitable ATM deployment and maintenance.
One of the new revenue opportunities that will soon be available to banks is advertising. According to Saul Caprio, director of marketing for Portland, OR-based ATM distributor Card Capture Services, Inc. (CCS), banks can generate attractive net revenue streams by running ads on their ATMs. “Potential net revenue per month could average between $2,500 and $5,000 for a bank with 50 ATMs handling 1,000 transactions per month,” explained Caprio.
Foreseeing the need to augment surcharging as a sole revenue source, Triton developed the Mako Cash Dispenser to enable banks to add advertising on a lower-cost machine. Mako is equipped with a color monitor and capacity for displaying graphically rich advertising screens. The ability to use Mako as an advertising medium gives businesses and banks an effective new means of reaching customers and provides an attractive new revenue source from their network of ATMs.
In addition to providing new ways of generating revenue, Triton designed the Mako ATM to make ATM deployment feasible in lower volume locations. In addition to a low initial purchase cost, the Mako ATM reduces ongoing maintenance costs, including streamlining of the cost of cash replenishment and capital. Triton Connect software can further reduce ongoing maintenance costs by allowing banks to access and control the Mako ATMs remotely from a centralized location.
“As the ATM market moves into lower volume locations, we’re helping banks succeed in this new market by continually enriching the functionality of our ATMs, while driving costs down,” added Mr. Paull.
About Triton Systems
As the leading manufacturer of cash-dispensing ATMs for off-premise locations, Triton Systems is committed to redefining and leading the retail market for cash delivery systems. As the third largest manufacturer of ATMs and ATM management software, Triton has been named two years in a row to Inc. Magazine’s “Inc. 500” ranking of the largest privately held companies in the U.S. Triton was also named one of America’s top 25 most successful small manufacturers by Industry Week Growing Companies in November 1998.
Triton’s product line includes the industry-leading 9600 series cash-dispensing ATMs, with various communication network interfaces such as CDPD. Additional products include the Triton Connect software package for accessing and controlling ATMs from a centralized location, ATMjr Demonstrators and ATMjr Plus CAS (Card Activation System) for financial institutions, SuperScrip terminal, the new Mako Cash Dispenser and the VendMate sidecar, which accepts cash and dispenses vending items such as tickets, certificates, and phone cards.
Triton ATMs are in use in over 20,000 locations in the U.S., with recent expansion into Canada, Latin America and other regions throughout the world. The company is headquartered in Long Beach, Mississippi. For more information, visit the Triton Systems website atDetails