Business Week Special Advertising Section - Security for ADT Equals Revolutionary Service

In this age of big mergers and acquisitions, banks and financial institutions are challenged to reduce costs and overhead. But that is not all. It is also necessary for growth and survival that they conquer new electronic markets and develop the innovative customer-oriented strategies that will service them.

Of course, security services doesnít automatically come to mind when thinking of how a bank can employ outsourcing in a new, creative and effective way to help electronic business efforts and create a strong market for ATM services. But that is exactly what many large financial institutions are doing through ADT Security Services, a Tyco International Ltd. Company.

ADT has developed a state-of-the-art surveillance program that takes advantage of new technological advances with regard to closed circuit television and video cameras. "Now, instead of having to have security people dedicated on site, the technology allows us to send video signals from all the branches and corporate headquarters back to our monitoring center," explains Robert Raymond, regional director of national accounts for ADT.

Revolutionizing Security
The ability to monitor what goes on at ATMs and banking centers on a real-time basis has revolutionized security for banks. It has impacted business and decreased operational cost and liability, while increasing customer service and credibility with the customer, says Raymond.

He explains that in the extremely competitive ATM marketplace ó where one New York City street corner can offer three or four choices to the consumer ó the most important sales strategy is getting the customer in the door of your ATM facility. Studies show this means creating the feeling of safety. "A consumer is going to want to use an ATM where they feel safe. If they feel threatened or unsafe, they will choose a different facility," Raymond explains.

The ability to monitor what goes on at ATMs and banking centers on a real-time basis has revolutionized security for banks. It has impacted business and decreased operational cost and liability, while increasing customer service and credibility with the customer.

Robert Raymond, Regional Director, ADT

From ADTís experience it has determined three main factors for customers choosing what ATM they are willing to use. They are:

The area or vestibule is free of any threatening people.
The area is maintained and clean.
All the lights work and the doors stay secure.

Creating Real Safety
That is where ADT comes in with its SecurVision product -- advanced video surveillance technology originally developed for the Gulf War. The service conducts video tours of ATM centers on a near real-time basis. The data is sent to ADTís remote monitoring center where any incident or discrepancy can be acted upon immediately. For example, "There have been many instances of what we call eviction," says Raymond. "We see something taking place on a site that needs attention. We notify the bank who has a guard service and they send a person out there to take action." This not only mollifies customers, it reduces operational costs by not having to patrol all sites on a regular basis, he adds.

Another element of the program that proactively helps to make customers feel safe is the ability to "talk" to the consumer while they are in the ATM vestibule. "The service identifies that we are remotely surveying the site for their safety and we ask them to respond via voice or hand signal that they can hear us," Raymond says.

Outsourcing Also Reduces Costs
In addition to the innovative and strategic customer service elements of ADTís security service, the offering also positively impacts organizations by providing the more traditional outsourcing advantages of better, faster and less expensive. "Some of the larger banks are trying to provide this service on their own," says Raymond. But after a few mergers and acquisitions they begin to examine overhead and look for ways to reduce costs -- that is when the security programs start to get eliminated, he explains.

"We had a bank that was downscaling its security program and eliminating some security initiatives -- they were too costly. We stepped in to outsource the program and accomplished two things," he says. "We allowed them to keep the security in place with the same quality and level of service. And we saved them a tremendous amount of money."

This bank was so impressed with the service, it was willing to tell other banks how outsourcing security can boost business. "They are ecstatic that we can provide this service to them, because it reduces costs and liability, and it helps to increase and maintain their customer service," Raymond concludes.