A dozen community banks, linked by their common technology platform supplied by Computer Services Inc, have formed an alliance that provides their customers with access to surcharge-free automatic teller machines, with a goal of connecting hundreds or even thousands of ATMs throughout the US.
The alliance members view surcharge-free ATMs as a way to attract new customers and provide better customer service to existing ones. Consumers with accounts at these banks will pay no surcharges when using ATMs owned by any of the other banks in the alliance.
This group of community banks is using the alliance as a ‘strength in numbers’ approach to rival their big bank competitors, which have recently started offering free access to their ATMs for customers of smaller banks with which they have a business association.
Randy Bono, VP at Premier Bank, Jefferson City, Missouri, considers the alliance a remarkable competitive tool. One of the first questions our new customers ask is ‘Where are your ATMs?’, Bono explained. ATMs are an expensive service a bank has to offer to be competitive. This alliance will help all CSI customer banks leverage the cost of multiple ATMs and allow us to compete with the large banks.
Banks become members of the alliance by paying a one-time fee of $300 per bank, regardless of the number of bank identification numbers (BINs) or bank ATMs. Any BINs added in the future will be assessed a one-time fee of $100. Currently 12 banks are sharing 68 ATMs but the alliance hopes the scheme will rapidly expand to increase its scope and competitiveness.