Surcharge-free ATMs: A win for community banks, customers

Over the past four years financial participation in surcharge-free ATM networks has moved from an up-ticking trend to a dynamic shift in the industry. Financial institutions are broadening their electronic payment services to include targeted cardholder perks such as surcharge-free ATM programs..The rapid growth in membership in surcharge-free ATM networks is two-fold. The initial surge coincided with the financial crisis in the fall of 2008. Community banks began joining surcharge-free ATM networks to reduce bank depositors' fees during challenging economic times..Community bankers across the country have been studying the results of different industry surveys on surcharge-free ATM transactions. They realize that surcharge-free ATM services are extremely effective at halting the migration of customers from smaller financial institutions to larger banks with greater ATM convenience. Surcharge-free network access helps community banks gain a larger footprint with more touch points at a lower cost than if the bank deploys the ATMs on their own..Community bankers are seeking surcharge-free ATM access to improve both customer retention and new customer acquisition..A Synergistics Research Corp., survey targeting community bank customers asked respondents about the likelihood of switching to an institution that offered free ATM services. More than half said they would consider changing financial institutions based on free ATM services, with 63 percent of the coveted 18- to 34-year-old segment saying they were receptive to switching to a surcharge-free network..After joining a surcharge-free ATM network most financial institutions enjoy a consistently higher client retention rate. In today's competitive marketplace, customer retention offers increased profitability and sustainable protection against competitive inroads. Nothing promotes profitability more than a high customer retention rate and strong cross-selling within the customer base..Surcharge-free ATMs boost ATM transaction volume. Participation in a surcharge-free ATM network provides financial institutions with an expanded footprint, reduced processing costs, and an enhanced experience for their customers. This is the type of empowerment shift that represents a true win for community banks, networks and consumers..For more information visit MoneyPass™ at www.moneypass.com