Investment in banks' ATM networks generally will be near the bottom of chief information officers' information-technology budgets for the next two years, according to survey results released by Aite Group LLC. Purchases of new ATMs and ATM software came in last behind 19 other categories the executives considered more important, Aite says. Other categories include information security, online banking and bill payment, mobile banking, fraud management, and branch remote deposit capture, says Kate Monahan, an Aite analyst and author of the report "Building A Better ATM Channel." Chief information officers ranked information security their top budget priority. Boston-based Aite conducted the online survey of 80 chief information officers employed by 40 of the nation's 120 largest banks, 40 U.S. credit unions, 40 U.S.-based community banks and five of Canada's largest banks during July and August. Aite did not inquire about the size of participants' information-technology budgets or the percentage of their budgets they plan to set aside for the different categories. "For ATM vendors, this does not look good for the ATM channel," says Monahan, noting chief information officers are focused on making their banks' services more secure. As such, ATM vendors could address these concerns by offering products that emphasize security, she adds. Chief information officers have more influence over the direction of information-technology budgets than do business-line executives in charge of managing banks' ATM networks, an earlier Aite survey found.

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