Cashing in on the benefits of utility ATM networks

Despite the accelerating global shift to digital transactions, cash remains essential—particularly for underserved populations, small businesses and regions with limited digital infrastructure. As financial institutions (FIs) evolve to accommodate this changing landscape and rationalize their branch networks, utility ATM networks have emerged as a critical solution for maintaining and expanding access to cash and banking services.

Here's why. As branches shift their focus to high-touch customer care to remain competitive, they must also continue to answer the call for available cash where customers live, work, shop and play. But managing an ATM estate means dealing with capital investments, maintenance, security, compliance, customer experience and more. To control costs, improve the performance of their ATM channels and expand access, FIs are increasingly partnering with utility ATM networks.

“The marriage of customer-facing technology and good old-fashioned currency promises new levels of customer satisfaction and service.” —NCR Atleos white paper

Utility ATM networks take several forms. They can be shared (owned by member banks or credit unions), or independent (operated by third-party providers). They are present in over a dozen nations, including the US, UK, South Africa and across Europe and Asia, adapting to local needs and operating under diverse models across countries—including private, mandated, joint venture and white-label networks.

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The strategic value of utility ATM networks

As outlined in the NCR Atleos white paper, Cash in the digital age: How utility ATM networks sustain financial access worldwide, partnerships with utility ATM networks offer myriad benefits, including:

• A scalable, cost-effective way to maintain and expand reach via access to physical touchpoints and branding
• A proven strategy for financial inclusion and compliance with evolving compliance mandates from governments around the world
• A way to put the ATM enhancements and feature upgrades customers want on “automatic”
• Industry-leading security practices

The white paper likens these networks to public utilities: “Flick a switch and the lights come on. The current is always there. In much the same way utility ATM networks provide a reliable, 24-7 current of currency worldwide.”

As the white paper details, utility ATM networks offer FIs cost savings, expanded reach, financial inclusion, enhanced customer experiences, resilience, security, support for digital platforms and retail partnerships.

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Expanding reach while reducing costs

Through utility ATM networks, FIs can share ATM devices, reducing capital expenditures while increasing reach. In the US, these networks fall into two categories: shared and independent. Shared networks are owned and operated by member FIs, while independent networks are run by outsourced ATM deployers.

Independent networks—such as Allpoint, the world’s largest—offer FI cardholders access to tens of thousands of surcharge-free ATMs in retail locations across the US. As the white paper notes, “In the independent model, FIs pay a fee to join the network and enjoy the cost-effective benefit of a shared infrastructure as opposed to owning one.”

This model is particularly attractive to mid-tier banks and credit unions, many of which lack the resources to maintain and continuously upgrade a proprietary ATM fleet. By joining a utility network, they gain access to a vast infrastructure without the operational burden or extra capital costs.

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Facilitating shifting FI priorities

These networks also support FIs in transforming their branch strategies. “As FIs employ networks, they can convert their branches from transaction centers to advice centers,” the paper explains, while expanding surcharge-free access. 

Arrow Bank of Glens Falls, NY, US, offers a compelling example. With 38 branches and $4.4 billion in assets, Arrow joined the Allpoint network in 2024, giving its customers surcharge-free access to 55,000 ATMs worldwide (including, in many cases, ATM deposit functionality). As the white paper puts it, “Access to utility ATM networks represents table stakes.”

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Driving financial inclusion

Utility ATM networks play a critical role in addressing financial deserts—areas without nearby branch access. These deserts disproportionately affect low-income, rural and older populations, many of whom lack reliable internet access.

By extending ATM access into underserved areas, utility ATM networks help FIs fulfill their mission of financial inclusion. The white paper highlights how Seacoast Bank in Florida joined Allpoint to ensure access during natural disasters, gaining “marked improvements across the board, with uptime exceeding 99%, safer and more secure machines and vastly improved customer experience paired with an increase in deposits.”

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Supporting neobanks and digital-first FIs

Neo banks operating as fintechs and other online FIs without physical branches rely heavily on utility ATM networks to provide cash access for their customers. “For a lot of fintechs, the ATM is the branch,” the white paper notes. Networks like Allpoint enable them to offer surcharge-free withdrawals at thousands of locations, enhancing customer satisfaction and retention. At the same time, ATM networks give traditional FIs a way to compete with neobanks on the surcharge-free front.

Retailers hosting utility ATMs see increased foot traffic and in-store spending. Describing a recent retail study, the paper reports that “A third of ATM users made a purchase while in a store and about 52% of those customers paid with cash they had just withdrawn.” It’s a partnership that is mutually beneficial.

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Enhancing security and resilience

While digital financial services offer convenience, they also introduce risk. Cyberattacks and data breaches are growing threats. But digital theft isn’t an issue with cash. As the white paper puts it, “As a concrete asset exchanged in non-digital channels, cash is immune to such threats.”

By ensuring access to cash, utility ATM networks also provide resilience during crises—a development world governments have noticed and take steps to support. For example, in Sweden, once poised to become the world’s first cashless nation, the central bank reversed course in 2025, calling for urgent legislative action to safeguard cash access.

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Looking ahead

As FIs refine their digital strategies, utility ATM networks offer a bridge between physical branches and digital services. They enable FIs to hand off cash operations, encourage self-service and partner with retailers through the network, to mutual advantage.

The white paper concludes with a compelling vision: “Though cash is decidedly non-digital, the marriage of customer-facing technology and good old-fashioned currency promises new levels of customer satisfaction and service.”

Download the full NCR Atleos white paper, Cash in the digital age: How utility ATM networks sustain financial access worldwide, to explore utility ATM network trends, case studies and proven strategies for FIs.