Friday, January 08, 1999
Provident Bank expands ATM group
BY JEFF McKINNEY
The Cincinnati Enquirer
Provident Bank, outbidding rivals Star and Key banks, won a deal to install 79 automated-teller machines in United Dairy Farmers stores where it does not already have ATMs.
The contract means that Provident will operate ATMs — actually machines that primarily dispense cash only — in all 204 of the convenience stores UDF operates in Ohio, Kentucky and Indiana.
The deal, announced Thursday, increases the number of Provident machines by 23 percent to 430; enhances the bank's ability to generate fee income; and gives it exposure in Columbus and Cleveland, where it has little presence.
Provident, Cincinnati's second-largest bank, won the contract after outbidding Star and Key, which had provided 67 and 12 ATMs at UDF stores, respectively. The new contract calls for Provident to install ATMs at 13 UDF stores in Greater Cincinnati and the remaining ones in Dayton, Columbus and Cleveland.
David Lindner, UDF's vice president of marketing, said the company's decision to go with Provident came down to a bidding process, and Provident made the best offer. The deal ended at least a five-year ATM relationship that UDF had with Star and Key.
“It was a tough decision because all three banks have provided us excellent service,” Mr. Lindner said.
The UDF deal also comes two months after Provident won a deal to install about 150 ATMs in Wal-Mart and Sam's Club wholesale stores in Ohio and Kentucky. That ATM deal was the first that did not have some connection with the Lindner family empire.
Cincinnati financier Carl Lindner and his family control more than 50 percent of Provident's stock. Provident's ATMs are mostly in its branches, UDF stores (controlled by the Lindner family) and Thriftway supermarkets (sold by the Lindner family to Winn-Dixie in 1995).
Still, Provident's ATM network trails its two largest local rivals. Fifth Third Bancorp has about 1,300 machines total, while Firstar Corp., which Cincinnati's Star Banc Corp. recently acquired, has about 1,400.
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