Morphis Inc., a Dallas-based payment-management software provider, has introduced a low-cost online ATM cash-forecasting tool for community banks and credit unions owning few machines.
“Some banks and credit unions manage as few as one or two ATMs,” Gary D. Faulkner, Morphis executive vice president and chief marketing officer, said at the ATM Industry Association conference last week in Miami. Credit unions and community banks are a growing market for ATM cash-forecasting software, he noted, adding Morphis signed Grand Rapids, Mich.-based Lake Michigan Credit Union as its first credit-union client in January.
Financial institutions’ ATM managers are placing increased emphasis on cash forecasting, says Gil Luria, an analyst with Wedbush Securities in Los Angeles. “Banks don’t want to have too little cash in ATMs because the machines could run out of money. And banks don’t want to have too much money in ATMs because the bank will lose money on interest revenue, Luria says.
ATM manufacturers NCR Corp., Wincor Nixdorf AG and Diebold Inc. offer banks and credit unions ATM cash-forecasting software as part of their managed services, Luria says.
North Canton, Ohio-based Diebold uses Morphis’ customized ATM cash-forecasting software, Faulkner says. Depending on the number of cash-holding cassettes, an ATM can keep up to $100,000 in its safe, he says.
ATM manufacturers are targeting credit unions for managed services. Duluth, Ga.-based NCR in December signed a three-year outsourcing agreement with Co-op Financial Services of Rancho Cucamonga, Calif. Co-op’s credit-union members may lease new ATMs, and NCR manages the machines through Co-op ATM Managed Services.
With Morphis, banks and credit unions pay a $1,500 setup fee to connect their ATMs to MorphisOnline/ATMCash, the company’s browser-based cash-forecasting tool. The software collects the machines’ transaction histories, which show how much the ATMs dispense daily, weekly and monthly. The software also provides information about how much money is in the machines, Faulkner says.
ATM owners then know how often to schedule armored car services to replenish machine funds and collect deposits, he says.
Morphis charges $50 per month account-access fee for the first ATM and $5 per month for each additional machine, Faulkner says. Banks and credit unions may add an unlimited number of ATMs, he says.
The price is much less expensive than Morphis’ customized ATM cash-forecasting software, which costs at least $100,000. “That price is a real barrier to community banks and credit unions,” Faulkner says.
MorphisOnline/ATMCash automates ATM cash forecasting, replacing Excel spread- sheet forecasting, Faulkner says. “The software automates basic cash-management tasks,” he says.