NASHVILLE, Tenn. -- Members of four Nashville area credit unions are creating an alliance to offer free access to each other's ATMs, a collaboration that reflects a nationwide growth of surcharge-free ATM cooperatives, particularly among smaller banks and credit unions.
The move is also a response to the sale late last year of First Tennessee Bank's Money Belt ATM network to Genpass Inc. Since March, members of credit unions which once had free access to First Tennessee's ATMs have been charged a $1 service fee.
The ATM alliance is slated to be operational by mid-August, according to a report in the Nashville Tennessean.
The institutions involved - Southeast Financial Credit Union of Brentwood, Old Hickory Credit Union of Old Hickory, Educators Credit Union of Nashville and U.S. Courthouse Credit Union of Nashville - have a total of 34 ATMs statewide. Through another arrangement, members also have surcharge-free access to another 15 ATMs in Food Lion stores in Middle Tennessee.
John Simmonds, president and chief executive officer of Southeast Financial, predicted that more Middle Tennessee credit unions would join the cooperative formed by the four. He said the possibility also exists that the regional ATM alliances might offer surcharge-free ATM services statewide.
Because credit unions generally don't have as many branches and ATMs as larger financial institutions, collaboration makes sense. Reducing costs and increasing customer convenience are often cited as benefits for alliance members.
