Tesco Bank kicks off three-year ATM modernisation project
Tesco Bank has embarked on a three-year modernisation of is entire ATM network, the third largest in the UK.
The UK bank has a fleet of more than 3,100 ATMs
Tesco operates 3,100 ATMs across its Tesco and One Stop stores. 2,000 of those machines will be replaced with newer models.
Tesco Bank says the change will give communities “access to free to use machines equipped with modern technology”.
The UK bank has also confirmed a commitment to install an ATM in all new Tesco stores “wherever possible”.
Mark Loch, group payments and money services director at the bank, says the ATMs play a “vital role” in people’s lives.
“We’re committed to protecting free access to cash in the communities that we serve, and we work hard to improve access wherever we can.
“We have the largest bank-owned ATM network in the UK, and this programme will ensure Tesco stores [allow] customers to access their cash for free in the future.”
Pay.UK data shows Tesco ATMs account for 15% of all cash withdrawals in the UK.
UK ATM decline
According to data from merchant firm Dojo, 7,200 ATMs closed down in the UK between January 2019 and September 2020.
Daily Business estimates the country is losing 340 machines every month. York is the worst-hit city in the UK, with 29% of its ATMs disappearing in recent years.
The use of contactless payments has surged in the country since the start of the coronavirus pandemic.
88% of all transactions made in-store are now completed with contactless cards, according to Barclaycard data. At the same time, the use of cash has dipped by more than 50%.
Tesco Bank: the lowdown
Tesco Bank stopped offering new current accounts in early 2020, and removed the ability to accrue interest for existing users in September.
It has pivoted towards greater integration with the retail side of the Tesco business, focusing on in-store credit, savings, and loans.
The bank uses Fiserv’s Signature core banking system.
Capita Mortgage Software Solutions (formerly Vertex Financial Services) provides its mortgage origination and servicing software.
For credit card processing, the bank uses the TS2 processing platform provided by TSYS. TSYS also provides Tesco Bank’s credit card business with full customer account management services.
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