A version of this article first appeared in the March BAI Executive Report on Branches: Adapting for the modern customer. Inside the issue, you’ll find coverage on middleware upgrades to connect ATMs and branches to evolving digital platforms, smarter branch footprints overall and key considerations for branch staff management.
I’m hearing people in our industry talk about “cashless branches,” but I believe they’re missing the point. “Cashless branches” carries a negative connotation because it implies fewer options to access your funds.
Branches that are succeeding with digital transformation aren’t getting rid of cash. Cash is here to stay because people want it for a host of uses. Instead, branches are moving cash withdrawals and other simpler transactions to ATMs so that staff can focus on higher-level services for customers and members.
I call these “smart branches” instead of “cashless branches” because it’s smart to use technology where it works best and people where they work best.
How smart branches benefit customers and members
There’s a long list of potential benefits from shifting more transactions to ATMs and leaving high-touch care to staff, plus individuals often have their own unique motivations — maybe they are balancing personal needs and their sole-proprietor business demands, for instance. From location convenience to quicker access to a check deposit’s funds and more, here are some of the features that banking consumers already expect or soon will come to rely on:
- Surcharge-free cash withdrawals at owned and network ATMs (for example, Allpoint ATMs) at branches and where customers live, work and shop
- More features at ATMs, including cash deposits and split deposits (which are popular with small businesses)
- Shorter wait times
- Fewer/shorter deposit holds, allowing for faster funds availability
- Extended business hours
- Access to technology while preserving relationships with tellers they like
- Effective communication through language options
How smart branches benefit financial institutions
It’s not just the end-users who desire improved banking experiences through smarter branches. Banks and credit unions see the upside as well. This approach is key to capturing more operational efficiencies, empowering the upskilling of personnel and other transformational takeaways.
- Retaining customers/members and winning digital natives Gen X, Millennial and Gen Z by offering digital options
- Lowering the risks of handling cash with well-secured devices
- Reducing per-transaction costs from $4 with an in-branch teller to $1 via self-service.
- Minimizing labor and infrastructure costs
- Shifting staff to high-value relationship-building work
- Retaining valued employees through career opportunities, including as video tellers
- Controlling the costs of ATM/interactive teller machine (ITM) maintenance with fixed monthly fees through ATM-as-a- Service utility network partners
You don’t have to just take my word for it. Financial institutions creating a nimbler branch experience for internal and external stakeholders are reporting qualitative and quantitative benefits to their omnichannel banking ecosystems. We examine a few use cases here.
Penair Credit Union: ITMs extend hours at lower cost
PenAir Credit Union converted its branch headquarters to what they call their SmartBranch model in January 2025. It was the credit union’s second use of this model, while four more examples of this design and three traditional drive-thrus are also in the works as of early 2025.
Derrick Aguilar, PenAir’s SVP and chief experience officer, said integrating ITMs into branches while shifting from the traditional teller operating model has transformed the branch from a transaction center into an advisory hub. Without responsibility for cash operations, in-branch employees can focus on more complex interactions that truly support our members’ financial needs while ITMs and video-enabled tellers are dedicated entirely to transactional services.
“This approach not only enhances service efficiency but also gives members the flexibility to engage in the way that works best for them—whether through self-service or personalized assistance,” he said. “ITMs enable us to offer extended hours at a lower cost and provide another touchpoint for members when branches cannot open, such as during natural disasters.”
“These changes are making us more proficient, faster and better equipped to handle cash-driven interactions,” he said.
Seacoast Bank: Efficiently expanding a footprint
Seacoast Bank wanted to elevate customer experience by enhancing its fleet of ATMs to offer customers more options while extending ATM access beyond its branch footprint.
Seacoast joined the NCR Atleos Allpoint Network, which expanded surcharge-free access to cash for customers at more than 40,000 locations in the U.S. It also moved to an ATM-as-a-Service model to transform its fleet and streamline operations.
“The network provided us the ability to scale well beyond the state,” says Julie Kleffel, executive VP and chief banking officer of Seacoast Bank. “Our finance partners saw this as a huge win because we were able to reduce capital expenditures substantially. Now it’s much easier to model the growth in the fleet as it relates to M&A activity.”
GFCU: ATM-as-a-Service allows for redirecting capital
Generations Federal Credit Union (GFCU) wanted to shift more transactions to ATMs with upgrades and adding more transaction types, enhancing member experiences. The organization also hoped the initiative would improve operating efficiencies and lower costs.
“Our members were telling us they wanted to be able to do what they wanted to do when they wanted to do it, the way they wanted to do it,” says Danielle Smothers, VP of retail delivery at the credit union. “GFCU chose ATM-as-a-Service, which has enabled us to shift our focus to providing a seamless experience for our members through all of our channels.”
For Smothers and the GFCU team that includes digital-first software and hardware, improved ATM availability and uptimes, empowered staff and improved member relations. And, she adds, “With the predictable monthly costs, we’ve been able to shift capital toward innovation so we can focus on delivering a better experience for our members.”
Renasant Bank: A hub-and-spoke solution
Renasant Bank wanted an efficient way to expand its footprint and reduce its cost per transaction while improving customer service. The bank introduced a hub-and-spoke model with a central branch (hub) and distributed ITMs (spokes), offering more transaction options at locations closer to customers.
Michelle Rivers, EVP and chief experience officer at Renasant, said the bank didn’t have to work too hard to find an effective way to introduce the new concept to their customers. “We weren’t afraid they would be put off by the technology because they’ve been talking to tellers over video for years in our drive-thrus,” she says. “We just call it ‘ATM with live banker’ and our customers know they’ll get the service they expect from us at our ITMs.”
In conclusion
The future of banking lies in a seamless balance of digital innovation and personalized human interaction.
By expanding digital services, banks and credit unions are well-positioned to navigate the evolving financial services landscape, delivering enhanced value to their customers and members.
Steve Nogalo is General Manager, North America for NCR Atleos.
