Verizon Expands Financial Services Portfolio
Verizon and competitors including AT&T Inc. already offer wireless connections for ATM machines that let financial institutions set up the cash distribution points on a more flexible basis for disaster recovery sites, large event sites or even remote permanent locations. What Verizon is now offering is a managed service that combines the wireless connection on Verizon's 4G LTE network, along with encryption and other security features, purchase, deployment and management of all routers and other gear, and ongoing management of the service and the equipment.
The offering is the latest expansion in Verizon's financial services portfolio, intended to offer its professional services expertise along with connectivity.
One of the goals of the managed service is to make the operational cost of wireless ATMs appealing to banks so that they deploy the units not just where portability is an issue, such as at major concert or festival venues or immediately after disasters, says Raj Dhinsa, managing principal, Financial Services with Verizon Enterprise Solutions, but also in non-branch locations such as malls.
"Wireless ATMs can be a more cost-effective option," Dhinsa says. "After disasters such as Hurricane Sandy, we also find the wireless network recovers faster than the wired network, so this becomes a better option for those scenarios."
The managed service offers end-to-end encryption over Verizon's private IP network and meets the PCI compliance Verizon developed for the retail and financial services industries.
Verizon won't stop offering separate wireless ATM services, on its own and with partner companies, says Dhinsa, but its managed service becomes another competitive option and one that Verizon believes it is unique in offering.
— Carol Wilson, Editor-at-Large, Light Reading