VocaLink, the transaction specialists, has secured a three year outsourcing contract with HSBC, delivering the end-to-end operation of HSBC’s new remote ATM estate.
The estate will be located in convenience stores throughout the UK and will be free to use for consumers.
The convenience sector in the UK continues to enjoy rapid expansion. The annual figure for growth in the number of ATMs deployed, at 4.9%, is significantly higher than the average for Western Europe. Meanwhile, the domestic ‘through the wall’ sector, remains static as new prime sites are becoming harder to find.
VocaLink is providing HSBC with a fully managed application which has a lower total cost of ownership than the traditional model. VocaLink is supplying the ATM operating infrastructure and supporting supply chain services. This will enable HSBC to concentrate on its go to market model and so optimise their cost efficiencies and generate new revenues for their ATM channel.
“ATMs continue to be an essential self service facility for bank customers. This project marks a significant development away from the traditional approaches banks take towards their ATM networks. Our ATM Managed Service proposition enables banks to improve their ATM channel performance. HSBC’s implementation will allow them to deploy their ATMs cost effectively into convenience locations where demand continues to grow,” says Martin Wilson, chief marketing officer, VocaLink.
VocaLink is the leading provider of ATM services with over 28,000 customer ATMs under direct VocaLink management. VocaLink also switches transactions for the LINK ATM network on behalf of the LINK Scheme.
HSBC is committed to deploying free to use ATMs specifically in low income areas as part of its commitment to a programme created in response to the Treasury Select Committee ATM Working Group last year. Following the Select Committee report LINK established a Financial Inclusion Programme to provide research and ongoing governance into this sector.
“We chose to work with VocaLink for this project because of their knowledge of, and leadership in, the ATM market and in particular the convenience sector which has increased our speed to market for this proposition. This is a great fit with the LINK Financial Inclusion Programme and supports HSBC’s commitment to deploy free to use ATMs,” says Tim Hutchins, head of Self Service and Branch Counters, HSBC.
The National Federation of Retail Newsagents, which exists to help the independent retailer compete more effectively in today’s highly competitive market, believes that the scheme will be as beneficial to the independent retailers as it will be to the consumer. Newsagents which install one of HSBC’s free-to-use ATM’s are expected to benefit from increased footfall, turnover and profits.