How banks can improve customer experience with surcharge free ATMs

While digital banking has become mainstream, customers still desire banking services in physical spaces. Of particular note is the continuing importance of ATMs, as customers regularly list access to ATMs as one of the top needs for bank branches.

Banking outside of the branch

However, customers also want access to bank services outside of the branch, especially with ATMs. In a study conducted by Visa, the company found that many customers want to use nonbank ATMs in stores due to in part safety concerns.

Alicia Moore, head of US ATM product at Visa Inc. said during a panel at ATMIA, held Feb. 14 to 16 in Las Vegas, that the survey found, "28% said they feel safer using nonbank ATMs in stores vs. unstaffed bank ATM after hours."

Why customers want nonbank ATMs

Customers also turn to nonbank retail ATMs for other reasons, such as their more convenient locations or the ability to deposit cash or checks. In particular when asked why they wanted to use nonbank ATMs, customers gave the following reasons:

• 47% said they used a nonbank ATM because it was closer.
• 45% said they could compete it while running errands.
• 43% said ATM wasn't accessible outside of bank hours.

However, nonbank ATMs charge fees while bank ATMs do not for their customer. Luckily for banks, there are ways to expand their ATM reach outside of their branches by partnering with surcharge-free ATM networks.

Benefits of surcharge-free ATMs

For example, VyStar Credit Union, located in Florida, recently joined the Allpoint Network, a retail ATM network.

"By joining the Allpoint Network, the world's largest independently owned retail ATM network, VyStar is enabling members to more easily access and deposit cash at convenient locations where they live, shop and travel," Lauren Morrison, VP of card product and services at VSTar, said in an email interview.

The credit union previously only had 230 ATMs, but by joining this network, it has expanded its reach to more than 40,000 ATMs in the U.S.

"The robust Allpoint network across the U.S. and more than 10,000 international locations, boosts our credit union's capability to swiftly enhance access and allows us to provide even more value to both new and existing members," Morrison said.

Diego Navarrette, EVP, president of global sales at NCR Atleos, the manager of Allpoint Network, said in an email interview that this network is particularly useful for expanding bank's presence.

"NCR Atleos' Allpoint ATM Network expands surcharge-free access to cash for credit union members at trusted locations across the US to support ongoing growth and/or offer access to banking services outside of branch hours or in locations where there are no branches nearby," Navarrette said.

Currenlty Allpoint provides cash access to, "over 1,150 banks, credit unions and card programs. This includes the largest neo-banks, government benefits remittance programs, payroll and pre-paid programs," Navarrette said.

He also points out that VyStar is saving money through this partnership by, "enabling members to more easily access and deposit cash at convenient locations where they live, shop and travel, without having to light up new branches or ATMs, they are essentially plugging into and using the NCR Atleos Allpoint network as a utility."

Ultimately the goal of this or any network is to help customers do banking on their own terms, without being limited to one physical location. This in turn gives bank branches the opportunity to become centers for financial education rather than simple transactions.