ATM/Electronic Banking
- Faculty Association Response
In brief, the University of North Florida’s
relationship with the Educational Community Credit Union (ECCU) will continue.
The existing ECCU ATM will remain in use where it is currently located on the
UNF campus. The ECCU will also convert its former space in the Courtyard to an
electronic banking center – with multiple features, including a second ATM. In
addition, the ECCU will install an ATM at the University Center.
The University’s relationship with the Educational
Community Credit Union and ongoing need for ATM(s)/electronic banking was
discussed and reviewed with the president, Gary Fane (last Fall), Lindsay
Hodges, Ann Duskin, Bob Fagin, Mauricio Gonzalez, Linda Anderson, Ricky Arjune,
Everett Malcolm and others. While many of these individuals received similar
summary information regarding this issue, and feedback and suggestions were
received, no committee, as such, was formed.
Please note that a final contract with the ECCU has
not yet been finalized.
Placing ATM’s on campuses can be attractive to financial
institutions since it gives them access to markets/customers. Schools often
generate some revenue from the placement of ATM’s on campus. This comes in the
form of “rent” charged to the bank in return for the space the ATM occupies,
etc. Since our existing credit union ATM does not charge transaction
surcharges, like many other ATM’s, we sought to continue this practice.
Two banks responded to our
ITN, AmSouth and ECCU. Four banks attended the mandatory meeting related to our
ATM ITN - AmSouth, SunTrust, Jax Navy Federal Credit Union and ECCU, but Sun
Trust and JAX Navy Federal Credit Union did not end up submitting proposals. We
are not sure exactly why the two banks dropped out, but the fact that there is
currently no fee charged by ECCU for use of our existing ATM may have been a
factor. Most banks charge a fee, usually ranging from $1 to $2 per transaction
for ATM use by individuals who are not the banks customers. (Individuals who
have an account with the bank who owns the ATM are not charged a transaction
fee.)
As a result of the Invitation to Negotiate, the Educational
Community Credit Union (ECCU) has offered to install and maintain three (3)
Automatic Teller Machines (ATM’s) on the University of North Florida Campus. In
addition to the existing ECCU ATM at UNF, they offered to install and maintain
two (2) additional ATM’s.
There is a strong tie to Educational Credit Union by some on campus. Currently, approximately 2,000 faculty, staff and students hold ECCU accounts. The ECCU also remains involved in the UNF campus community by supporting back-to-school and orientation functions.
As a result of the Invitation to Negotiate, the Educational
Community Credit Union (ECCU) has offered to install and maintain three (3)
Automatic Teller Machines (ATM’s) on the University of North Florida Campus. In
addition to the existing ECCU ATM at UNF, they offered to install and maintain
two (2) additional ATM’s – one additional in the electronic banking center (no
fee) and one additional in the University Center ($1 fee).
We communicated with ASG regarding the pending ATM proposal. They
feel that we should revisit having ATMs on the North side of campus. They feel
that there is a lot of traffic at this location - with the Arena and Fitness
Center. However, each ATM will cost the
bank about $35,000 and a lot of expense to keep it serviced day to day.
Consequently, banks are very cautious in the placement of these machines. ATM's are not placed with the same ease as
vending machines are around campus. Banks will put them only where the vendor
believes the traffic warrants such placement. We can wish and plan and suggest
locations all we want, as of now we don't have the clout to dictate these
points. This was made clear in the ITN process.
Note that we tried to now have ATM’s placed at the Student Union,
Boathouse and Arena as well, but we could not get any bank to agree to install
ATM’s at these locations.
At this stage we just don't have the clout to pick where ATM's are
placed and to get 5 ATM's instead of the proposed 3. As of now, the market
dictated the locations and return related to this venture. We aggressively
asked for more ATM's at other UNF locations, but 3 ATM's, in the locations
indicated, was the best we could do.
There is a strong tie to Educational Credit Union by some on
campus. Currently, approximately 2,000
faculty, staff and students hold ECCU accounts. The ECCU also remains involved
in the UNF campus community by supporting back-to-school and orientation
functions.
The proposed agreement with ECCU would:
·
Be for 1-3 years.
·
Provide for 3 ATM's at UNF - the existing ATM, an ATM in an
Electronic Banking Center in the former UNF ECCU space, and an ATM at the
University Center
·
Cover the installation of the 2 additional ATM’s.
·
Cover the installation of an Electronic Banking Center in
the former UNF Credit Union space.
·
Cover all equipment, installation and maintenance costs
related to the ATM's and the Electronic Banking Center.
·
Provide for ongoing ECCU payment of any associated
utilities.
·
Provide for rent at $50 per month per ATM.
·
Provide payment of $250 monthly rent for the Electronic
Banking Center.
·
Stipulate ECCU transaction fee's to be charged - there would
be no transaction fees charged at the existing ATM or at the ATM in the
Electronic Banking Center. However, there would be a $1 transaction fee for
non-ECCU account holders, at the University Center ATM. (The feeling is that
the University Center would be a different market for the ECCU - where the ATM
would be used more by visitors and the volume of use would be less)
Please note that the final contract with the ECCU has
not yet been finalized.
Since our existing
credit union ATM does not charge transaction surcharges like many other ATM’s
do, and we wanted to ask the selected financial institution to continue this
practice, our rent from our ATM’s would be on the low end of the scale.
However, the additional ATM would offer more service to students, faculty and
staff - adding to campus life.
As indicated,
an Electronic Banking Center would be installed in the former ECCU space in the
Courtyard. There is about 240 square feet at this location. The ECCU estimates
that it would cost them about $75,000 to install an Electronic Banking Center
at this location. This space would be used for limited banking, but would not
be a permanent location. As we move to
adding a commercial component to our Student Union, and eventually move the
Bookstore there, we would have a staffed bank there. I anticipate that the
location in the expanded Student Union would be a full service banking facility
with tellers, cash, and a full range of banking services. But this will take some
years.
The Electronic
Banking Center, in the former ECCU space at UNF, would allow faculty, staff and
students to:
·
Withdraw funds by cash or check
·
Deposit funds by cash or check
·
Transfer funds between accounts and make loan advances and
payments
·
Obtain account information, including balances and
transactional history
·
Obtain printouts of settlements
·
Apply for Credit Union membership
·
Open new accounts, including savings, checking and
certificate accounts.
·
Apply for loans,
·
Reorder checks and place stop payments on checks
·
Obtain information about ECCU’s products and services
·
Interact with an ECCU member Service Representative over the
phone
·
Send account inquiries via email
AmSouth offered to pay UNF
$500 per month rent for placing one (1) ATM on campus - in the same location as
the existing UNF ATM. However, they
wanted to charge all non-customers $2.00 per transaction and they are unwilling
to provide any other ATM’s on our UNF campus. (This is a case where, in spite
of charging a transaction fee, the Bank wants to pay a flat monthly rental to
the University). We sought additional ATM’s from AmSouth, but they demurred.
Based on a comprehensive
evaluation of the ATM/Banking proposals, it was our recommendation, based on
our current situation, that the University of North Florida select the
Educational Community Credit Union as its preferred ATM provider. As such, it
was recommended that contract focused negotiations be authorized to begin with
the Educational Community Credit Union as soon as possible.
Placing ATM’s
on campuses is attractive to financial institutions since it gives them access
to new markets/customers. Schools often generate some revenue from the
placement of ATM’s on campus. This comes in the form of “rent” charged to the
bank in return for the space the ATM occupies, etc. These rent payments can
range from $300 or so, but can go much higher for each ATM annually. Since our
existing credit union ATM does not charge transaction surcharges like many
other ATM’s do, we wanted to ask the selected financial institution to continue
this practice. We anticipated that our rent from our ATM’s would be on the low
end of this scale. However, the additional ATMs would offer more service to
students, faculty and staff - adding to campus life.
In conjunction
with a future ATM in the expanded Student Union, we could ask for proposals for
a staffed banking operation at this location. As we move to adding a commercial
component to our Student Union, and eventually move the Bookstore there, we
could seek to have a staffed bank there too. I anticipate that the location in
the expanded Student Union would be a full service banking facility with
tellers, cash, and a full range of banking services – similar to those found in
some grocery stores.
A number of schools offer students (and faculty and staff) the option of upgrading their multi-purpose card (our Osprey Card) to accommodate a banking function. The back of our Osprey Card has two stripes - a wide stripe and a narrower, thinner stripe. The narrow stripe is used primarily for vending machines and washers and dryers. Students insert their Osprey Card into a “cash to card” machine to add value to this narrow vending stripe. Once they do this, they can use the Osprey Card in lieu of cash in vending machines and washers and dryers - avoiding the need to utilize lots of change to do their laundry. The second stripe on the back of the Osprey Card primarily is used for accessing our food service plans and library. This wider stripe could be converted so that the Osprey Card could, in the future, be used as, in effect, a banking debit card. If the student, faculty or staff member choose to do so, they could possibly, in the future, sign up with the on-campus bank and then they could use their Osprey Card for any purpose they would normally use a debit card for - purchases in stores on or off campus, withdrawals from ATM’s, etc.
The prime
attraction of a possible future Osprey Banking affiliation would be that it
could potentially provide an easy way for students to establish a banking
relationship. However, faculty and staff would also have easy access to this
option. Banks often find this very appealing as a way to proactively generate
business.
Obviously, our
enlarged Student Union will be the prime future location for a banking
function, but until then an option is to provide electronic banking through the
current UNF Credit Union space. For the interim, we are suggesting the
continued use of the current Credit Union space for the same purposes it has
been used for up to now.