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Why Banks Should Outsource ATM Management: Benefits & ROI 

Your ATM network is the most visible, tangible extension of your bank’s brand and a critical component of customer service and satisfaction. Yet, managing ATM fleets has become a minefield of high operational costs, escalating compliance complexity and the constant, resource-draining demand for seamless uptime. The challenge is no longer how to manage it, but how to survive it. 

Why banks are embracing ATM outsourcing 

The decision to outsource ATM management is a direct response to a fundamental shift in banking economics. The biggest test for banks globally is cost. Since the COVID-19 pandemic, ATM transaction volumes have declined across most markets. For instance, in 2019, £116 billion was withdrawn from ATMs in the UK, compared to £80 billion in 2024, reflecting a 31% fall. 

Because ATMs have a high fixed-cost component, this volume decline has driven unit operating costs to much higher levels. Further complicating the issue is rising inflation and the decreasing value of interchange revenue; and many banks are reluctant to charge direct consumer fees for fear of reputational damage. The ATM channel is often no longer profitable based on revenue alone, but banks and financial institutions cannot simply shut down the ATM channel because many consumers worldwide still rely on convenient cash access.  

The cost imperative is to keep the cash access footprint, but dramatically reduce operating costs. The strategic alternative is ATM outsourcing, also known as ATM Managed Services. This involves entrusting the entire operation or a significant portion of your ATM fleet management to a specialist third-party provider. It’s a proven model that helps banks reduce risk, optimize costs and refocus on core banking services.  

ATM outsourcing enables banks to enhance operational efficiency and benefit from the provider’s economies of scale. They can ensure competitiveness by maintaining a robust, customer-centric physical presence without the constant operational drain, while refocusing capital by directing internal resources toward digital channels and customer acquisition, rather than ATM compliance and maintenance. 

Full versus partial outsourcing models 

The ATM Managed Services market was valued at $8.45 billion in 2024, and may reach $12.29 billion by 2033, growing at a compound annual growth rate of 4.25%. 

Outsourcing the ATM channel, either fully (including the ATM assets themselves) or partially (focusing just on operating the channel on behalf of the bank), is an effective measure to address the cost challenge.  

Full outsourcing (ATM-as-a-Service) means the provider owns the ATM hardware, manages the full lifecycle and charges the bank a predictable monthly fee. This removes the entire CapEx burden, transferring all operational and compliance-related risk (like mandated OS upgrades) to the managed services partner. A comprehensive outsourced solution covers every aspect of the ATM lifecycle, including monitoring and helpdesk, cash loading and logistics, first-line and second-line maintenance, compliance and software, and asset management.  

Partial outsourcing is where the bank or financial institution retains hardware ownership but outsources specific, high-cost functions, such as cash replenishment or technical maintenance. While beneficial, this model retains some in-house complexity and CapEx fees.

 

The top benefits of ATM outsourcing for banks 

• Reduced operational costs and CapEx transfer 

ATM outsourcing is a strategic move that delivers deep, measurable benefitDDs to your bank’s bottom line. By leveraging a specialist provider’s economies of scale (consolidating logistics, optimizing cash flow and volume purchasing), banks can achieve OpEx savings of 15–20%. Full outsourcing eliminates CapEx entirely and removes the hard-to-quantify hidden costs embedded in internal operations, such as time spent managing multiple third-party suppliers. 

• Improved ATM uptime and service quality 

A provider whose core business is ATM performance delivers more than just high uptime; they also deliver uninterrupted service and reliability. Nothing is more frustrating to customers than an out-of-service ATM. Predictive analytics, expert technicians and 24/7 monitoring can help your network reach best-in-class uptime levels. This proactive, uninterrupted service boosts customer loyalty and reinforces your brand’s promise of dependable convenience. 

• Risk transfer and compliance support 

ATM operations are fraught with physical, security and regulatory risks. ATM outsourcing transfers the burden of compliance to the partner, from adhering to complex regulatory mandates to managing physical security and fraud mitigation. It also lowers risk to bank employees by utilizing trained professionals and deploying armored vehicles for cash replenishment. 

• Data-driven decision-making 

ATM managed services use advanced analytics to turn raw data into actionable insights, optimizing both service and profitability. Predictive, AI-based cash forecasting minimizes residual cash (idle capital) and reduces costly Cash-in-Transit (CIT) runs, ensuring superior cash utilization and ATM uptime. Analysis of transaction trends, foot traffic and demographic data also supports strategic decisions on ATM placement. 

• Scalability and network expansion 

Outsourcing allows your network to scale up or down quickly without incurring large internal overhead costs. Whether expanding into a new market or adjusting your ATM footprint, a managed services partner offers the flexibility, scale and resources to execute strategy on demand. It also frees up valuable internal staff to focus on core banking functions. 

Best practices for successful ATM outsourcing 

To ensure your investment in ATM outsourcing yields maximum return, you can follow these suggested best practices: 

• Choose a multi-vendor capable partner: Select a provider who can seamlessly manage an ATM fleet from different manufacturers to avoid being locked into a single vendor’s technology. 

• Prioritize security and compliance: Verify that your partner has robust, globally-certified processes and technology to protect your network against evolving threats and manage ongoing regulatory compliance. 

• Demand data transparency: Insist on real-time access to performance dashboards and detailed reporting.  

• Align on SLAs and KPIs: Establish clear SLAs for critical metrics like uptime, cash-out incidents and response times. Ensure KPIs align with your business goals.  

• AI-powered cash optimization: Look for a provider who integrates predictive AI cash forecasting to maximize cash utilization and minimize unnecessary costs. 

Calculating the ROI of ATM outsourcing 

The Return on Investment (ROI) of ATM outsourcing extends beyond just cutting costs – it’s about strategic value creation and future-proofing your network. By adopting a full managed services model, banks commonly see operational cost (OpEx) reductions of 15-20%. And by reducing OpEx and leveraging scale, outsourcing can also lower the Cost Per Transaction (CPT), which is critical in an environment of declining volumes. With regard to CapEx costs, unpredictable capital expenditures for hardware and mandated upgrades will be removed entirely.  

Improved revenue opportunities 

Higher ATM uptime means more completed transactions and reduced lost revenue from cash-outs. Furthermore, internal staff are freed up to focus on profitable, core banking functions like sales and customer relationship management. While transforming ATMs into a pure profit center is challenging, maximizing uptime and efficiency is the best way to optimize the channel’s contribution. 

Case study snapshot  

Some financial institutions that have moved to full managed services have reported overall cost reductions approaching 30%, achieved by eliminating internal cash vault infrastructure, reducing staffing related to ATM management and leveraging the partner’s purchasing scale. 

Why Brink’s AMS is the partner of choice 

Brink’s AMS is recognized as the global leader in managing ATM logistics, offering a strategic partnership that can transform your ATM channel from a fixed-cost burden into an efficient, optimized asset. We know how to run ATM channels as businesses, and have built the systems, processes and intellectual capital to support sustainable financial returns. 

Our unique value proposition is rooted in our vendor-agnostic, operator mentality and unrivalled global scale. We have operational expertise across 52 markets and, combined with our essential street-level knowledge, we can deliver maximum value and revenue potential to our banking partners. 

By partnering with Brink’s AMS, you benefit from a consolidated, high-performance platform: 

Global Scale, Local Expertise 

• We have a scaled base of over 140,000 ATMs to drive down purchasing and operating costs, combined with deep local knowledge for optimized logistics. 

Unified Service and Predictive Management 

• A single point of accountability for cash, maintenance, monitoring, and compliance. Our technology uses advanced analytics to pre-empt issues, maximizing uptime and minimizing costs. 

Operator Mentality for Added Value 

• Our experience running our own ATM portfolios ensures we know how to run the channel as a profit-driven business, enabling greater efficiency and revenue maximization. 

Full CapEx Transfer and Future-Proofed Technology 

• We take full ownership of assets and responsibility for all future compliance-related capital costs. This allows your bank to immediately direct capital into core digital channels, while we ensure your ATMs remain current with the latest technology. 

Ready to transform your ATM network from a cost center into a competitive advantage? 

The decision to outsource ATM fleet management is a commitment to a more efficient, resilient and profitable future. It’s the smart way to maintain a robust, customer-centric physical presence without the constant operational drain.  

By partnering with Brink’s AMS, you transfer operational complexity and risk, gain cost predictability and ensure your ATM network remains a reliable, high-performing asset that your customers can depend on. 

Contact Brink’s today for an analysis of your current ATM operations and discover the true ROI of ATM outsourcing.