atm and branch delivery equipment services/maintenance review typical project overview february 2015
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ATM and Branch Delivery Equipment Services/Maintenance Review
Typical Project Overview
February 2015
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Equipment and Networks● Expanding and Increasingly Complex/Diverse:
- Number of units/locations and equipment relocations
- Equipment types, models and functionality
● Changing Network/Delivery Expectations
- Remote/automated network management
- Network security/compliance requirements
● Rapidly Evolving Costs and Purchase Protocol
- Increasing support services and costs
- Negotiated versus traditional/historical equipment purchasing methodology
- Prioritized versus general/proposed upgrades and/or replacements
- Multiple providers versus sole source for equipment and support services
- Increased administration, frustration and management costs
Typical Client Conditions
ATM and Branch Equipment Services/Maintenance – Project Overview
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Typical Client Conditions
• FI’s continue to expand and relocate critical ATM and branch delivery equipment/systems – with limited vendor or internal review or update of equipment listings and service
• Resource limitations perpetuate ongoing confusion and frustration with contract documentation, services and costs
• Due diligence is difficult to justify relative to perceived risk/lack of options and time required to identify/validate modifications
• Clients rely on service vendors/provider(s) exclusively for regular services and contract review, updates and recommendations
Situation:• Updates and corrections to
equipment listings are inconsistent – real time service requirements and documentation rarely matches current equipment in use
• Standard annual price increases are applied to all equipment reflected on listings at the time of each renewal
• Existing services/maintenance contracts are allowed to automatically renew versus being revised and/or renegotiated
• Clients are over reliant on service provider(s) for information, services and associated cost management
Result:
ATM and Branch Equipment Services/Maintenance – Project Overview
Vendor Management
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Where Key 2 Advisors Expertise Can Help
• They are spending significant sums of money on service contracts, central network management and billed work
• Existing contracts, invoicing and billed work documentation is exceptionally difficult to decipher
• Achieving clarification/understanding is very challenging; tiny bits of additional information/clarity are attained only after significant effort and tenacity
Customers Recognize:
• What current contracts, service plans and centralized management really cover. Or not cover?
• What they should/could be paying for current service. Or are there other options available that may represent better value to the Institution?
• The ability to be appropriately informed may not be part of the current providers plan
But May Not:
ATM and Branch Equipment Services/Maintenance – Project Overview
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Key 2 Services – What to Expect• Enhanced Understanding /Clarity of Current Conditions- Equipment/locations now under/not under service coverage- Current service coverage; remote services, service plans, hours and contract terms- Current costs and contract terms/conditions
• Insight for Potential Change- Eliminating low value and/or un-needed service- Critical, strategic (cannot fail) equipment and delivery systems requiring service- Available/optional services, service plans and coverage- What you could/should be paying for needed services relative to peer institutions- Key vendor and contract negotiation strategies
• Benefits - Identify and secure services that best meets your current needs and value
expectations- Proven tools and process to successfully identify and negotiate needed changes- Achieve significant, sustainable and on going service cost reduction
ATM and Branch Equipment Services/Maintenance – Project Overview
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Current Service Preliminary Assessment
Total All Current Baseline (Annual) Costs: $ TBD
(per client provided service documentation)
ATM and Branch Equipment Services/Maintenance – Project Overview
Current Baseline Costs - All Equipment
ATMs: Hardware and Managed Service
Teller Cash Dispensers/Recyclers
Branch Delivery/Security
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Current Services Preliminary AssessmentService Elements, Issues and Opportunity
Review ElementGeneral
Assessment:Identified
Issues
Current Services Poor Marginal Appropriate (Y/N)
Service Plan Coverage
Response Time/SLA
Other
Equipment CoverageNon-Critical Systems Under ServiceCritical Systems /Lacking ServiceLow Value/cost benefit service
Other
Pricing
Consistency
General/Relative Pricing
Other
Contract Contract Terms and Conditions
Other
ATM and Branch Equipment Services/Maintenance – Project Overview
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Current Service Preliminary Assessment
Projected Minimum 3 Year Net Savings : $ TBD
(Net of Project Fee)
ATM and Branch Equipment Services/Maintenance – Project Overview
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000 Projected Minimum Cost Reduction
Program Fees
Project Calculations (Based on Minimum Projected Savings)
Current Annual Service/Maintenance Contract (Baseline) Costs: $ TBDProjected Percentage Service Cost Reduction (Minimum) TBD%Projected Revised Annual Service Costs $ TBDProjected Minimum Annual Savings $ TBDProjected Available One-time Credits/Other $ TBDTotal Projected Available Annual Savings and Credits – Year 1 $ TBD
Our Program Fees are based on a % of the Total Identified Available Savings and Credits - Year 1 only Total Program Fee $ TBD
Net 3 Year Service Savings (Net of Program Fee) $ TBD
Branch and ATM Service/Maintenance – Project Review
Project fees are performance based – and calculated on identified available savings, cost reduction and credits available in the first year period only.
Client Testimonials
Washington Federal - Seattle, WA“Key 2 Advisors recently helped us to understand our expanding ATM equipment, service coverage, costs and what others were paying for similar products and services. They made the process simple, and the insight they provided allowed us to identify significant cost reduction opportunities. Tim strikes the right balance between presenting actionable opportunities and not being too pushy.”Brent Beardall, EVP/CFOGesa Credit Union – Richland, WA"As a CIO/COO, one of my many responsibilities is to manage total costs of delivering strategic member services. Working with Tim and Key2 Advisors was a very positive experience; they took the time to help us to understand our current branch equipment service costs, options and to negotiate revised service contracts. Tim’s knowledge helped us complete our project on time – and to secure reduced service costs that were very competitive. Raj Bandaru, CIO/COO
Spokane Teachers Institution – Spokane, WA“Key 2 was able to help us in areas where other consulting firms simply could not deliver; remote network updates, hardware service/maintenance revisions and renegotiating current contracts with long term ATM service and equipment providers. Russell Palmer, Card Services Manager
Executive SummaryService and Maintenance Project Review
• Current ConditionsFinancial Institutions have expanded their strategic branch and self service delivery networks in response to changing technology, compliance mandates and growing expectations for new/expanded services. These requirements continue to drive rapidly expanding service needs, complexity and challenges associated with managing equipment service, maintenance and related network support costs.
• Opportunity:A preliminary service assessment of both of the institution's current equipment service coverage, network support and costs will identify available opportunities for service improvement and cost reduction. This assessment will provide projected net 3 year minimum available savings in addition to options for service coverage modification and improvement.
• RecommendationsServices provided by Key 2 Advisors are proven to substantially improve our customer’s ability to efficiently manage and execute service enhancement projects. Based on typical conditions and peer assessments we are confident that the institution would materially and significantly benefit from a service review project, and recommend that a preliminary assessment to confirm this potential be completed.
ATM and Branch Equipment Services/Maintenance – Project Overview
Next StepsStep 1Contact provided peer Key 2 Advisor referrals/clients with completed/similar projects and confirm results.
Step 2Initiate preliminary service assessment.
Step 3Review and approve Key 2 Advisor project proposal and contract documents.
Step 4Initiate project as proposed.
ATM and Branch Equipment Services/Maintenance – Project Overview
