As banks are increasingly challenged to improve operational efficiencies while maintaining the same high standards for the member experience, many continue to reimagine their physical footprint. According to NCUA data, credit unions saw the most branch closures during Q1 of this year since late 2021. (Bank version: Over 300 U.S. bank branches were proposed for closure in just the first quarter of this year.) However, even as branches close, there is still a need for meaningful physical touchpoints to facilitate customer/member service and support.

This is where the utility ATM network has emerged as a strong option, an approach that involves plugging into a network of ATMs located within trusted retail locations, allowing customers/members to withdraw and sometimes even deposit cash from where they live and shop.  This model makes it possible to rethink the branch strategy without abandoning core customer/member segments. Through a utility network, banks can increase efficiencies while reducing complexities, extend their presence out into the community and support financial inclusion.

Branch transformation

Utility ATM networks enable banks to hand off their cash handling responsibilities to a trusted third party, relieving them of the operational costs and resources required to maintain and operate the machines. Plus, an expanded ATM footprint encourages customers/members to use convenient, frictionless self-service for simple transactions such as deposits, transfers, credit card payments and balance inquiries.

By offloading more routine, low value transactions to the ATM, banks can transform their branches from transaction to advice centers. The resources once spent on ATM management can instead be used to better attract, engage and retain customers/members, offering more personalized guidance for topics such as mortgages and loans. Such high value conversations not only help generate revenue but strengthen customer/member relationships.

Strengthen community presence

Utility ATM networks leverage ATMs placed within trusted retail locations, such as grocery, convenience/fuel stores and pharmacies. This allows customers/members to benefit from the convenience and security of these shops but also enables banks to strengthen their presence throughout the communities they serve. By displaying bank branding on the machines, brand visibility and recognition is enhanced by both customers/members and perspective customers/members. With this expanded community presence, banks can also better match the scale and reach of larger players – without the hefty capital and resource expense.

Boost financial inclusion

Today, 12 million people or about 3.5% of the US. population live in banking deserts, or areas without a branch within a particular distance (two miles in urban areas, five miles in suburban areas and 10 miles in rural areas as defined by the Federal Reserve). While some assume that online banking can compensate for lack of physical footprint, lower-income, rural and older populations are less likely to have access to these digital options.

This is another area where utility ATM networks can provide value. If a bank can’t justify the capital expenditure of a full-fledged branch in certain areas, tapping into a utility network enables them to still have a meaningful physical presence across the communities they serve. Doing so widens access to cash and other critical financial services, supporting financial inclusion.

In a time when banks are challenged to balance operational efficiencies with impactful customer/member service, utility ATM networks offer a strong path forward. Reimaging their physical footprint through strategic partnerships and expanded ATM access, banks can reduce costs, add convenience and deepen their community presence. This model not only helps advance branch transformation but also plays a critical role in widening financial access. The banks that take advantage of this strategy will be well positioned to streamline operations, enhance customer/member loyalty and support growth.