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ATMs can appeal to local customers, community

ATMs can appeal to local customers, community

Community banks continue to do well in the industry, and one way they are maximizing their market share versus larger banks is by offering ATMs. These products not only allow banks to continue servicing customers after hours, but they also appeal to people who want expedited service at a bank.

Smaller banks did very well in the third quarter, according to Banking Exchange. Of the community-sized institutions, two out of three showed higher earnings in Q3 year over year. This is good news. Typically, larger banks do most of the heavy lifting in terms of market share, but this year shows that small banks can still have an impact on the financial market.

Some of the major increases for banks were loans and other services that many people go to smaller banks to for more personalized care. Banks can help galvanize this by offering access to keeping ATMs for people who need quick cash or want to make a deposit, thus freeing up the line for people who want to speak with someone about a more complex and potentially lucrative deal.

ATMs also increase customer service because they complement the welcoming feel of small community banks. People who like using small banks enjoy small towns in general, but when it's less convenient to shop at a local bank than a larger banking institution, people may think twice. Those who like the small and intimate feeling of a community bank will also love that the same people who run that local fixture are taking care to think about customer satisfaction and installing ATMs.

According to Current in Fishers, a local news site for Fishers, Indiana, banking at a local community bank was quite common until recently, and the government even went so far as to issue "hometown notes," which were printed at the local bank with the name of the town. Although the practice doesn't exist in most places, the spirit lives on when people bank locally.

December 19, 2014