Operations

The Best Defense is a Good Offense

Plan now to manage ATM changes and compliance requirements.

September 15, 2013
/ PRINT / ShareShare / Text Size +

Credit union leaders have learned to expect change. From economic uncertainty to compliance mandates, no year is ever the same. Often, change managers find success by following one key philosophy: planning ahead.

This philosophy will be tested in the coming months, as credit unions prepare for several compliance, technology, and supplier-support changes to the ATM channel. These changes will require credit unions to upgrade existing ATMs and/or re-evaluate deployment strategies.

The required changes include:

Windows 7 migration: As Microsoft ends support of its Windows XP operating system, an upgrade to Windows 7 (before April 2014) is required to keep up with the latest patches and to maintain payment card industry compliance.

Europay/MasterCard/Visa (EMV) liability shifts: A series of updates, which began in April, will shift the liability for card counterfeiting losses from card issuers to transaction acquirers that do not enable EMV transactions.

Payment card industry 3.0 compliance guidelines: An enhanced version of the encrypting PIN pad will be required to maintain compliance on ATMs purchased and installed after April 2014.

Americans with Disabilities Act (ADA) mandates: Federal regulations for ADA compliance, in effect since 2012, make any neglected upgrades even more critical.

It seems daunting, but if you plan now, you can manage the changes holistically for maximum efficiency regarding cost and process. If you delay your planning, you’ll likely spend more time and money.

What’s the best approach? Follow these five steps:

1. Study the timeline. Each credit union has different priorities. Study the deadlines and the impact each change will have on goals and priorities for your ATM channel—both now and in the coming years.

2. Evaluate your fleet. Examine the hardware, soft ware, and network implications related to each of the changes. Does your ATM soft ware support Windows 7? Are your units equipped with EMV chip card readers? What about network certification? These are just some of the issues you must consider when creating your plan to manage the changes.

3. Calculate your capital investment. What’s your readiness to invest? Options to manage the changes include upgrade, replace, and/or migrate to outsourcing. Each credit union will have a different solution.

Some credit unions are ahead of the game because they recently invested in upgrades or replacements to meet ADA requirements. For those with smaller staffs or more complex environments, outsourcing ongoing needs might make sense. It puts the maintenance burden on the provider, while offering a predictable monthly expense.

Consider how your plan will affect future initiatives. If more robust ATM marketing technology is on the horizon, for example, it might make financial sense to plan for this upgrade at the same time.

4. Develop an implementation plan. Here’s where you create the plan that allows the changes to take place. Timing is critical. Because you’ve planned ahead, you can implement many of these changes in tandem to meet multiple requirements, which broadens the impact of your investment.

Be sure partners, especially network providers, share your commitment to planning ahead. Your network provider might schedule its certification around Windows 7 at a time that delays your migration plan. Speak up! Ask to have the schedule moved up to meet your timetable. Think ahead when scheduling EMV and payment card industry certification needs.

5. Start today. The ATM fleet changes that Microsoft , MasterCard, Visa, and the U.S. government mandate present challenges. But there’s a bright side. As you implement your plan, you’ll not only meet compliance requirements and supplier support changes, you’ll also have a fleet that’s better equipped for meeting future ATM channel initiatives.

Simply put, planning ahead works. You’ll have fewer headaches, maximize your investment, and, most important, you’ll minimize the risk to your credit union.

DEAN STEWART is senior director of core solutions product management for Diebold, Inc.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive