Interview with ATM Systems               

Interviewer: Jack Rudinsky, Associate Editor, EFTmagazine.com

Interviewee: Gil Lovett, Senior VP, ATM Systems

Recently, I had the opportunity to interview Gil Lovett, Senior Vice-President of ATM Systems. Like other ISOs, ATM Systems offers a "turnkey" ATM merchant program. However, ATM Systems has truly developed a unique niche. This niche and focus has enabled ATM Systems to selectively grow their business and attract many "higher profile" customers. In the following discussion, Gil Lovett will introduce you to his company and explain its strategy for success.

Question: Gil, please describe for our readers what ATM Systems offers customers and how you differ from your competition?

Answer: Well, Jack, ATM Systems is a nationwide placement and outsource management company. In other words we place, operate, and manage, "off-premise" or non-bank-branch ATMs. Unlike many ISOs, which focus their efforts on selling ATMs to mom & pop merchants, we have allocated our resources towards more of a niche market. Our strategy has been to attract higher profile customers by providing a high quality, value-added, turnkey ATM program.

Question: What do you mean by higher profile customers?

Answer: Our turnkey placements are most commonly in large hotels. Other locations include upscale supermarkets and "Class A" office properties. We also work with smaller banks assisting them in expanding and more efficiently operating their off-premise ATM networks.

Question: Who are some of your customers?

Answer: We are a preferred ATM vendor for Marriott International, Omni Hotels, Whole Foods Market, Bristol Hotels, Starwood managed properties, Columbia Sussex, Host Marriott, and TrizecHahn, among others.

Question: You mentioned ATM Systems is nationwide. What exactly does this mean?

Answer: Actually, instead of nationwide I should have said North American. We currently operate in 30 states across the country, as well as in Canada. Once an opportunity is presented that makes sense, anywhere in the U.S. and Canada, we can have an ATM deployed and operational within 3 to 4 weeks.

Question: This business is competitive. What sets ATM Systems apart from others in the industry?

Answer: Service and customization. I know it’s trite to say service, but we understand that our success is dependent upon the satisfaction of our customers. We take special care in listening to the needs of our clients. Each customer has a unique situation. Our solution is customized to meet these specific needs. In fact, a large number of our existing customers were previously served by other ATM companies. As they became dissatisfied with the performance of these vendors they turned to us and, fortunately, they have been extremely happy with our program.

Question: You referred to customization. Can you be more specific as to the features of your program?

Answer: Certainly. There aren’t many banks or ISOs that offer a true turnkey ATM program (i.e., providing the ATM, cash, cash loading, maintenance, etc.). Of those that do, many are seriously lacking in customization and overall quality. The trend in ATM deployment is to provide the lowest cost solution. Unfortunately, we feel, and our customers concur, that many of these cheaper alternatives are not the bargain they appear to be. As I said before, we listen carefully to our customer’s needs. Our customers tend to be equally concerned with the reliability of the product and service as well as the aesthetic appeal. We provide our customers with high-end "smart" machines, like an NCR 5670 or Persona which are superior for monitoring purposes; we build custom ATM cabinets, designed to the customer’s specifications so that it matches the property décor; we design custom graphics to place on the ATM’s color monitor which enables our customers to advertise and promote their own services; we equip our ATMs with Mas-Hamilton locks to increase maintenance efficiency and enhance security; we carry 7x24 maintenance contracts on all our ATMs, with 4 hour response time; our access to "vault cash" for loading into our ATMs is virtually limitless, we use our proprietary database to monitor our network and keep close tabs on ATM cash balances, transaction data, and faults; and we provide our customers with monthly detailed reports, all accessed via the Internet.

Question: How large is your ATM network?

Answer: Our network is currently just under 200 ATMs. "Large" is certainly a relative term. To some our network may seem quite small, while to others it is fairly large. But quantity has no meaning to us at ATM Systems. In our opinion, the vast majority of all ATM sites are poor - especially if you’re talking about providing a turnkey program. Our goal from day one has been quality. Based on 750 monthly withdrawals, our operational costs approximate $1,000 per ATM, per month (and this does not include our initial capital investment). Because of this, clearly, we have to be more selective as to the sites in which we deploy our ATMs. And believe me, our customers appreciate this discretion.

 Question: What are your plans for expansion? What do you see in the future for ATM Systems?

 Answer: I see us doubling the size of our ATM network over the next two years. I guess one might say it’s controlled growth. ATM Systems won’t ever sacrifice quality for quantity. We are successful today because of this philosophy, and I don’t see it changing. Furthermore, we will continue to improve upon our value-added solutions. For instance, ATM advertising is the talk of the day. The trick, however, is finding a viable solution. We’re currently beta testing a new advertising distribution technology on our network and will continue to research and test a variety of options until we find one that best accomplishes this goal.

 Question: Thanks for taking the time to chat with us. Any closing remarks?

 Answer: I thank you as well. A Mercedes and a Chevy are indeed both cars, but clearly there are huge differences in these two types of vehicles. A turnkey ATM program is no different. Customer satisfaction is the only issue. To date we have a 0% customer churn rate. This is proof of the commitment we make to our customers. So, to the business owners reading this interview, I’ll say this: if you find your ATM occasionally (or frequently) runs out of cash when it shouldn’t, or fails to operate when it should, or doesn’t really earn much profit, or doesn’t have a custom designed cabinet, or has limited ability to display colorful graphics promoting your services - or all of the above - we should talk.

Contact Information:

ATM Systems Corporation

Gil Lovett, Senior VP 19650 Club House Rd., Ste.102

Montgomery Village, MD 20886

800-417-3201